ACCOUNTS - Final Accounts preparation

Operating loss

The operating loss is stated after charging:

Registered number: 09760015

PARITY TECHNOLOGIES LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

PARITY TECHNOLOGIES LIMITED

COMPANY INFORMATION

Directors	S Littlejohns (appointed 12 November 2020)
	R J Wood (appointed 15 October 2018)


Registered number	09760015


Registered office	1 Sans Walk
	London
	England
	EC1R 0LT


Independent auditors	HT Digital Ltd
	Chartered Accountants & Statutory Auditors
	101 New Cavendish Street
	1st Floor South
	London
	England
	W1W 6XH

PARITY TECHNOLOGIES LIMITED

CONTENTS

	Page
Group Strategic Report	1 - 5
Directors' Report	6
Directors' Responsibilities Statement	7
Independent Auditors' Report	8 - 12
Consolidated Profit and Loss Account	13
Consolidated Statement of Comprehensive Income	14
Consolidated Statement of Financial Position	15 - 16
Company Statement of Financial Position	17 - 18
Consolidated Statement of Changes in Equity	19 - 20
Company Statement of Changes in Equity	21 - 22
Consolidated Statement of Cash Flows	23 - 24
Notes to the Financial Statements	25 - 48

PARITY TECHNOLOGIES LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

The Directors present the Strategic Report for the year ended 31 December 2025.

Company Overview

Parity Technologies is a core blockchain infrastructure company with a remote-first team of 200+ professionals, with entities located in Germany, United Kingdom, Portugal, Switzerland and Singapore. Founded by blockchain pioneers, our team includes some of the world's leading blockchain innovators, core engineers, Rust developers and solutions architects.

Key Partnerships

The partnership between Parity Technologies and its key client, Web 3.0 Foundation (W3F), remains robust, with a three year Service Level Agreement (SLA) signed in January 2024. We fully anticipate that this will be renewed in January 2027. Parity continues to play a pivotal role as the primary engineering services firm for the Polkadot blockchain, renowned for its scalability, resilience and interoperability.

Proof of concepts and Technology Development

2025 was a watershed year for the Polkadot technology stack. By the end of 2025, the principal milestones associated with Polkadot 2.0 had been completed. Asynchronous Backing increased network capacity, Agile Coretime introduced more flexible access to blockspace, and Elastic Scaling enabled applications to use additional capacity as demand grows.

The migration of core functionality from the Relay Chain to Asset Hub was also completed successfully and without disruption. This marked an important step towards establishing Polkadot Hub as the native home for assets, smart contracts, and applications on Polkadot, with support for familiar Solidity tooling and Polkadot-native execution.

With these core primitives in place, development is now focused on the Polkadot Products Platform: bringing Polkadot’s infrastructure, developer tooling, and shared services together into a more coherent environment for building modern decentralized products. In parallel, work continues on JAM as the proposed longer-term evolution of Polkadot’s core architecture.

Page 1

PARITY TECHNOLOGIES LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Key performance indicators

The completion of the principal Polkadot 2.0 milestones, the successful migration of core functionality to Asset Hub, and continued progress on Polkadot Hub were aligned with the strategic direction set by the Board. These developments established the technical foundations for the Polkadot Products Platform and the next phase of developer and product-focused work.

We monitor progress through key technical milestones, network performance and reliability, developer adoption, and the ability to attract and retain the specialist talent required to deliver the strategy. Our compensation framework remained competitive during the year, supporting the retention of high-performing employees and the recruitment of key technical expertise.

Key Objectives:

• Advance the Polkadot Products Platform by bringing infrastructure, developer tooling, and shared services into a more coherent environment for building decentralized products.

• Complete the development of Polkadot Hub as the native home for assets, smart contracts, and applications on Polkadot, with support for familiar Solidity tooling and Polkadot-native execution.

• Improve the developer experience by simplifying onboarding, deployment, interoperability, and access to scalable network capacity.

• Increase adoption by making Polkadot’s capabilities more accessible to developers, application teams, and end users.

• Maintain security, reliability, scalability, and decentralization as core priorities across the platform and its continued development.

• Continue the research and development of JAM as the proposed longer-term evolution of Polkadot’s core architecture.

We remain confident in our strategy and resource planning to carry this momentum through the next phase of network adoption and innovation.

Streamlined Energy and Carbon Reporting

Parity Technologies’ development of Polkadot upholds the lowest total annualized network carbon emissions for proof-of-stake protocols as reported in the CCRI PoS Benchmark Study 2023, demonstrating our dedication to sustainable practices and environmental responsibility.

In addition, Parity operates primarily with remote workers and maintains a small office space in a FORA facility in the UK, reflecting our commitment to minimising our environmental impact.

Energy Consumption: Our total energy consumption at our UK office, located in a FORA facility, remains minimal due to the nature of our operations, which primarily consist of electricity usage.

Carbon Emissions: Our remote working model significantly reduces commuting emissions and aligns with our sustainability goals.

Future Plans: We are committed to leveraging remote work to further reduce our carbon footprint. Additionally, we will explore opportunities to enhance energy efficiency and sustainability measures in our limited office operations.

Page 2

PARITY TECHNOLOGIES LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Section 172 Statement

The Directors of Parity Technologies are committed to upholding their duties as outlined in Section 172 of the Companies Act 2006. In their decision-making processes, the Directors have considered the following:

• Long-Term Consequences: Strategic decisions, technological developments and partnerships are made with a focus on long-term sustainability and growth.

• Employee Interests: Our employees are our most valuable asset. The Directors prioritise their well-being, offering competitive performance based compensation packages, fostering a supportive work environment, and investing in professional development.

• Company Relationships: Maintaining strong relationships with customers, suppliers, and partners is essential. The SLA with W3F exemplifies our commitment to long-term partnerships and the success of Polkadot.

• Community and Environment: Parity Technologies is dedicated to minimising its environmental impact and contributing positively to the community. Our initiatives in these areas are detailed in the SECR section.

• High Standards of Conduct: We strive to maintain the highest standards of company conduct, ensuring transparency, ethical practices, and robust governance.

• Fair Treatment of Shareholders: The Directors are dedicated to sustainable long-term value creation for all shareholders, ensuring balanced and equitable decision-making.

Financial Performance

Key Financials

Turnover: £29.1m (vs 2024: £40.5m, -28.3%)

Gross profit/(loss): £10.8m (vs 2024: £23.4m, -54.1%)

Operating loss: £38.5m (vs 2024: loss £296.0m)

Overall, the group made an operating loss of £38.5m (2024: loss £296.0m), which included no exceptional one-off items (2024: £281.8m). The key driver of this was due to the total turnover of Parity which decreased in 2025 by 28.3% year-over-year, driven by lower staking rewards as a result of a company restructuring.

The Directors have assessed the group's performance in meeting its objectives against its Key Performance Indicators. Turnover generated from assistance with the building of blockchain infrastructure being a key KPI, was broadly stable, up 1.63% from £26.7m in 2024 to £27.2m in 2025. The Directors view this stability in the core revenue line as a positive indicator of the underlying health of the Parity / W3F engagement, against a challenging digital-asset market backdrop.

Group restructuring

During the current year, PTL II Limited was dissolved on 11 March 2025. There were no further material changes to the corporate structure during the year.

Page 3

PARITY TECHNOLOGIES LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Principal risks and uncertainties

Market risk: The primary risk to the group is fluctuation in the market value of its intangible assets. The risk is mitigated through careful asset management, ensuring the group has sufficient cash liquidity.

Other risks:
Technological risk: With any complex technological product, there is risk of failure. Such a failure in the technological underpinnings of our digital assets would present a financial risk. The group does not regard this as a principal risk, except to the extent that it is ultimately a market risk.

Talent risk: The competitive job market within the technology space presents a risk of failing to obtain and retain staff with desired skill sets.

Development and performance

The Group will continue its strategy of pursuing technological excellence and innovation, with the focus during 2026 turning increasingly from underlying protocol development toward platform delivery and end-user products.

Future outlook

The Directors see a strong future for Parity Technologies. With the maturation of the Polkadot Hub, native smart-contract functionality, Elastic Scaling, and an increasingly stable JAM protocol specification, the platform is positioned to host the next generation of Web3 applications at meaningful scale. In parallel, the introduction of the DOT supply cap coming into effect on Pi day (14 March) 2026, limiting total issuance to 2.1 billion DOT, establishes a more disciplined economic foundation for the network.

Growth opportunities continue to open up in adjacent sectors including real-world asset tokenisation, decentralised physical infrastructure (DePIN), on-chain gaming and identity / personhood systems. Parity's engineers remain focused on continually upgrading the software that secures the Polkadot ecosystem, making it more scalable, more interoperable, and more accessible to mainstream users, while in parallel beginning to deliver Parity-built products on top of the platform during 2026.

Financial Instruments

The group has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted mainly in euros. The company does not hold any currency contracts and does not enter into any formally designated hedging transactions.

Qualifying Third-Party Indemnity Provisions

The company has put in place qualifying third-party indemnity provisions for the benefit of its Directors. These provisions, which were in force during the financial year and remain in force as of the date of this report, provide protection against certain liabilities incurred by Directors in the execution of their duties. The indemnity provisions are part of the company's commitment to support its Directors and officers, enabling them to perform their roles effectively without undue concern for personal liability.

Page 4

PARITY TECHNOLOGIES LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

This report was approved by the board on 3 September 2026 and signed on its behalf.

................................................

S Littlejohns

Director

Page 5

PARITY TECHNOLOGIES LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

The directors present their report and the financial statements for the year ended 31 December 2025.

Principal activity

The principal activity of the group continued to be that of assisting with the building of blockchain infrastructure
through cryptography, peer-to-peer technology and decentralised consensus architectures.

Results and dividends

The loss for the year, after taxation, amounted to £33.4m(2024 - loss £295.3m).

No ordinary dividends were paid. The directors do not recommend payment of a dividend.

Directors Insurance

The group and company have put in place qualifying third-party indemnity provisions for the benefit of its Directors. These provisions, which were in force during the financial year and remain in force as of the date of
this report, provide protection against certain liabilities incurred by Directors in the execution of their duties. The
indemnity provisions are part of the company's commitment to support its Directors and officers, enabling them
to perform their roles effectively without undue concern for personal liability.

Directors

The directors who served during the year were:

S Littlejohns (appointed 12 November 2020)

R J Wood (appointed 15 October 2018)

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Auditors

The auditors, HT Digital Ltd, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 3 September 2026 and signed on its behalf.

................................................

S Littlejohns

Director

Page 6

PARITY TECHNOLOGIES LIMITED

DIRECTORS' RESPONSIBILITIES STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2025

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Group's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 7

PARITY TECHNOLOGIES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARITY TECHNOLOGIES LIMITED

Opinion

We have audited the financial statements of Parity Technologies Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2025, which comprise the Consolidated Statement of Profit and Loss, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Group's and of the Parent Company's affairs as at 31 December 2025 and of the Group's result for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the Parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Page 8

PARITY TECHNOLOGIES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARITY TECHNOLOGIES LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

∙adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

∙the Parent Company financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of directors' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit.

Page 9

PARITY TECHNOLOGIES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARITY TECHNOLOGIES LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 7, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.

Page 10

PARITY TECHNOLOGIES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARITY TECHNOLOGIES LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.

• We obtained an understanding of the legal and regulatory framework applicable to the Group and the industry in which it operates. We determined that the following laws and regulations were most significant: FRS 102 and the Companies Act 2006.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

• Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

Page 11

PARITY TECHNOLOGIES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PARITY TECHNOLOGIES LIMITED (CONTINUED)

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor’s Report.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

N Newman (Senior Statutory Auditor)

for and on behalf of

HT Digital Ltd

Chartered Accountants & Statutory Auditors

101 New Cavendish Street

1st Floor South

London

England

W1W 6XH

3 September 2026

Page 12

PARITY TECHNOLOGIES LIMITED

CONSOLIDATED PROFIT AND LOSS

FOR THE YEAR ENDED 31 DECEMBER 2025

	2025	2024
Note	£000	£000


Turnover	4	29,054	40,521
Cost of sales		(18,296)	(17,088)
Gross profit		10,758	23,433
Administrative expenses		(52,804)	(38,783)
Exceptional administrative expenses		-	(281,759)
Other operating income	5	3,478	3,931
Other operating charges		-	(2,860)
Operating loss	6	(38,568)	(296,038)
Interest payable and similar expenses	10	(24)	(2,867)
Loss before tax		(38,592)	(298,905)
Tax on loss	11	5,189	3,564
Loss for the financial year		(33,403)	(295,341)

Loss for the year attributable to:
Owners of the Parent Company	(33,403)	(295,341)
	(33,403)	(295,341)

The notes on pages 25 to 48 form part of these financial statements.

Page 13

PARITY TECHNOLOGIES LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2025

				2025	2024
			Note	£000	£000

Loss for the financial year	(33,403)	(295,341)
Other comprehensive income
Unrealised (surplus) / deficit on revaluation of intangible assets	(73,401)	(150,397)
OCI FX movements	(129)	-
Corporation tax on chargeable gains relating to crypto currency and digital assets	(3,041)	2,877
Deferred tax arising on revaluation of intangible assets	17,789	(111,091)
Other comprehensive income for the year	(58,782)	(258,611)
Total comprehensive income for the year	(92,185)	(553,952)

The notes on pages 25 to 48 form part of these financial statements.

Page 14

PARITY TECHNOLOGIES LIMITED

REGISTERED NUMBER: 09760015

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2025

		2025		2024
Note		£000		£000

Fixed assets
Intangible assets	12		32,375		134,088
Tangible assets	13		1,445		924
Investments	14		-		214
			33,820		135,226
Current assets
Debtors: amounts falling due within one year	15	55,814		68,668
Cash at bank and in hand	16	6,384		6,395
		62,198		75,063
Creditors: amounts falling due within one year	17	(9,099)		(12,027)
Net current assets			53,099		63,036
Total assets less current liabilities			86,919		198,262
Provisions for liabilities
Deferred taxation	19	-		(19,413)
			-		(19,413)
Net assets excluding pension asset			86,919		178,849
Net assets			86,919		178,849

Capital and reserves
Revaluation reserve	21	-	58,692
Foreign exchange reserve	21	111	279
Other reserves	21	412	412
Profit and loss account	21	86,396	119,466
Equity attributable to owners of the Parent Company		86,919	178,849
		86,919	178,849

Page 15

PARITY TECHNOLOGIES LIMITED

REGISTERED NUMBER: 09760015

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 DECEMBER 2025

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 3 September 2026.

................................................

S Littlejohns

Director

The notes on pages 25 to 48 form part of these financial statements.

Page 16

PARITY TECHNOLOGIES LIMITED

REGISTERED NUMBER: 09760015

COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2025

		2025		2024
Note		£000		£000

Fixed assets
Intangible assets	12		32,349		133,981
Tangible assets	13		218		177
Investments	14		1,000		1,222
			33,567		135,380
Current assets
Debtors: amounts falling due within one year	15	55,292		69,052
Cash at bank and in hand	16	6,172		5,992
		61,464		75,044
Creditors: amounts falling due within one year	17	(14,502)		(16,657)
Net current assets			46,962		58,387
Total assets less current liabilities			80,529		193,767

Provisions for liabilities
Deferred taxation	19	-		(19,413)
			-		(19,413)
Net assets excluding pension asset			80,529		174,354
Net assets			80,529		174,354

Capital and reserves
Revaluation reserve	21		-		58,686
Other reserves	21		412		412
Profit and loss account brought forward		115,256		132,788
Loss for the year		(35,179)		(296,450)
Other changes in the profit and loss account		40		278,918
Profit and loss account carried forward			80,117		115,256
			80,529		174,354

Page 17

PARITY TECHNOLOGIES LIMITED

REGISTERED NUMBER: 09760015

COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 DECEMBER 2025

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 3 September 2026.

................................................

S Littlejohns

Director

The notes on pages 25 to 48 form part of these financial statements.

Page 18


		PARITY TECHNOLOGIES LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Revaluation reserve	Foreign exchange reserve	Other reserves	Retained Earnings	Total equity
	£000	£000	£000	£000	£000	£000
At 1 January 2025	-	58,692	279	412	119,466	178,849
Comprehensive income for the year
Loss for the year	-	-	-	-	(33,403)	(33,403)
Other comprehensive income movements	-	-	-	-	294	294
Deficit on revaluation of other fixed assets	-	(73,401)	-	-	-	(73,401)
Tax relating to other comprehensive income	-	17,789	-	-	(3,041)	14,748
Movement in FX reserve	-	-	(423)	-	-	(423)
Total comprehensive income for the year	-	(55,612)	(423)	-	(36,150)	(92,185)
Transfer to/from profit and loss account	-	(9,150)	-	-	9,150	-
Tax relating to profit and loss	-	6,070	-	-	(6,070)	-
Other FX movements	-	-	255	-	-	255
Total transactions with owners	-	(3,080)	255	-	3,080	255
At 31 December 2025	-	-	111	412	86,396	86,919

	The notes on pages 25 to 48 form part of these financial statements.
	The Share Capital of £81 has not been shown on the Statement of Changes in Equity due to rounding, however it has been shown to its full precision in note 20.

Page 19


		PARITY TECHNOLOGIES LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Revaluation reserve	Foreign exchange reserve	Other reserves	Retained Earnings	Total equity
	£000	£000	£000	£000	£000	£000
At 1 January 2024	-	379,349	(220)	-	136,333	515,462
Comprehensive income for the year
Loss for the year	-	-	-	-	(295,341)	(295,341)
Deficit on revaluation of other fixed assets	-	(150,397)	-	-	-	(150,397)
Tax relating to other comprehensive income	-	111,091	-	412	(2,877)	108,626
Movement in FX reserve	-	-	499	-	-	499
Total comprehensive income for the year	-	(39,306)	499	412	(298,218)	(336,613)
Transfer to/from profit and loss account	-	(281,351)	-	-	281,351	-
Total transactions with owners	-	(281,351)	-	-	281,351	-
At 31 December 2024	-	58,692	279	412	119,466	178,849

	The notes on pages 25 to 48 form part of these financial statements.
	The Share Capital of £81 has not been shown on the Statement of Changes in Equity due to rounding, however it has been shown to its full precision in note 20.

Page 20


		PARITY TECHNOLOGIES LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Revaluation reserve	Other reserves	Retained Earnings	Total equity
	£000	£000	£000	£000	£000
At 1 January 2025	-	58,686	412	115,256	174,354
Comprehensive income for the year
Loss for the year	-	-	-	(35,179)	(35,179)
Deficit on revaluation of other fixed assets	-	(73,395)	-	-	(73,395)
Taxation in respect of items in other comprehensive income	-	17,789	-	(3,041)	14,748
Total comprehensive income for the year	-	(55,606)	-	(38,220)	(93,826)
Transfer to/from Retained Earnings	-	(9,150)	-	9,150	-
Tax relating to profit and loss	-	6,070	-	(6,070)	-
Total transactions with owners	-	(3,080)	-	3,080	-
At 31 December 2025	-	-	412	80,116	80,528

	The notes on pages 25 to 48 form part of these financial statements.
	The Share Capital of £81 has not been shown on the Statement of Changes in Equity due to rounding, however it has been shown to its full precision in note 20.

Page 21


		PARITY TECHNOLOGIES LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Share-based payments reserve	Revaluation reserve	Other reserves	Retained earnings	Total equity
	£000	£000	£000	£000	£000	£000
At 1 January 2024	-	-	379,349	-	132,788	512,137
Comprehensive income for the year
Loss for the year	-	-	-	-	(296,450)	(296,450)
Deficit on revaluation of other fixed assets	-	-	(149,959)	-	-	(149,959)
Taxation in respect of items of other comprehensive income	-	-	111,091	412	(2,877)	108,626
Total comprehensive income for the year	-	-	(38,868)	412	(299,327)	(337,783)
Transfer to/from Retained Earnings	-	-	(281,795)	-	281,795	-
Total transactions with owners	-	-	(281,795)	-	281,795	-
At 31 December 2024	-	-	58,686	412	115,256	174,354

	The notes on pages 25 to 48 form part of these financial statements.
	The Share Capital and Share Based Payment Reserve of £81 and £19 respectively are not shown on the Statement of Changes in Equity due to rounding, however they have been shown to their full precision in note 20.

Page 22

PARITY TECHNOLOGIES LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2025

			2025	2024 - Restated
			£000	£000

Cash flows from operating activities
Loss for the financial year	(33,403)	(295,341)
Adjustments for:
Other Non-Cash Movements	(4,446)	101,557
Revaluation	32,515	1
Depreciation of tangible assets	338	137
(Profit)/Loss on disposal of tangible assets	6	133
Taxation credited	(5,189)	(3,564)
Decrease/(increase) in debtors	13,978	(56,076)
(Decrease)/increase in creditors	(5,100)	7,460
Corporation tax received/(paid)	2,107	(39,697)
Investment Income	(2,697)	(2,253)
(Profit) / Loss on Sale of Intangibles	-	281,759
Finance Cost	24	2,867
Net cash generated from operating activities	(1,867)	(3,017)

Cash flows from investing activities
Purchase of tangible fixed assets	(820)	(591)
Sale of tangible fixed assets	3	22
Interest received	2,697	2,253
Net cash from investing activities	1,880	1,684
Cash flows from financing activities
Interest paid	(24)	(2,867)
Net cash used in financing activities	(24)	(2,867)
Net (decrease) in cash and cash equivalents	(11)	(4,200)
Cash and cash equivalents at beginning of year	6,395	10,595
Cash and cash equivalents at the end of year	6,384	6,395

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	6,384	6,395
	6,384	6,395

Page 23

PARITY TECHNOLOGIES LIMITED

The notes on pages 25 to 48 form part of these financial statements.

A prior period error in the consolidated statement of cash flows for 2024 was identified and corrected during the preparation of the 2025 accounts. There was a reclassification of operating cash flow adjustments and balances across the other non-cash movements, revaluation, taxation credited and the decrease /(increase) in debtors lines. The net impact of these reclassifications is nil on the net cash generated from operating activities total as well as on the remaining subtotals and final cash position of the Parity group.

This restatement does not affect any other statement or note disclosed within the financial statements. The correct comparative figures are now reflected in the consolidated statement of cash flows for the year ended 31 December 2025.

Page 24

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1.	General information

Parity Technologies Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Sans Walk, London, England, EC1R 0LT.

The group consists of Parity Technologies Limited and all of its subsidiaries.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements.

The following principal accounting policies have been applied:

2.2

Going concern

The financial statements have been prepared on a going concern basis, which the directors consider to be appropriate.

As at the balance sheet date, the Group had net current assets of £53.1m (2024: net current assets of £63m), reflecting a strong liquidity position. The directors have reviewed the Group’s forecasts and cash flow projections for a period of at least 12 months from the date of approval of the financial statements.

The directors believe that the Group is solvent and able to meet its liabilities as they fall due, supported by fixed assets of £33.8m, which largely comprise intangible assets. These include digital assets totalling £32.4m. The directors acknowledge that there is an inherent risk associated with the valuation and volatility of such assets within this sector.

Based on this review, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Page 25

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

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 resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Profit and Loss within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 26

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.4

Revenue

Turnover is recognised at the fair value of consideration that is specified in a contract with a customer and excludes amounts collected on behalf of third parties. Revenue from software development contracts is recognised over time as services are rendered by contractors.

Revenue from consulting contracts is recognised in the accounting period in which the services are rendered. For long-term consulting and advisory service contracts, revenue is recognised based on the actual services provided up to the end of the reporting period as a proportion of total services to be provided. The directors have assessed that the stage of completion is determined based on the performance obligations specified in the terms and conditions of the contract or by the time elapsed as a proportion of the total contract term length, as at the end of the reporting period, as the appropriate measures of progress towards complete satisfaction of these performance obligations under FRS 102.

Estimates of revenues, costs, or extent of progress towards completion are revised if circumstances change. Any resulting movements in estimated revenues or costs are reflected in the profit or loss for the period in which the circumstances that give rise to the revision become known by management.
Revenue from validator staking rewards is recognised at the point in time when a block is created and transactions are validated. The validation process confirms transactions and adds them to the blockchain, which is when it is probable that the economic benefits associated with the transaction will flow to the entity. The rewards are measured at the market value of the cryptocurrency token on the date of the block creation and validation of transactions.

Revenue from nominator staking rewards is recognised at the point in time when it is effectively earned by the nominator; when the tokens have been credited to the nominator's wallet by the blockchain protocol, which is when the revenue recognition criteria under FRS 102 section 23.14 are satisfied. The rewards are measured at the market value of the cryptocurrency token on the date the tokens have been credited to the nominator wallet.

These policies ensure that revenue from blockchain activities is recognised in a manner that reflects the transfer of economic benefits and the fulfilment of performance obligations as per the principles of FRS 102.

These policies outline when and how revenue should be recognised for both validators and nominators, ensuring compliance with FRS 102.

2.5

Grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

Grants of a revenue nature are recognised in the Consolidated Profit and Loss Account in the same period as the related expenditure.

Page 27

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.6

Current and deferred taxation

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 current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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;

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

2.7

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

Page 28

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.8

Cryptocurrency or digital assets

The Company and Group receives cryptocurrency or digital assets as consideration for services rendered. The Company and Group recognises crypto assets or tokens as an intangible asset under FRS 102, as they are identifiable non-monetary assets without physical substance. The Company and Group recognises these assets when all the recognition criteria of intangible assets are met, including:

• They are separately identifiable;
• The crypto assets or tokens are in the control of the Company and this control has arisen as a result of contractual or legal rights; and
• It is expected that future economic benefits will flow to the business from them.

The Company and Group has chosen to apply the revaluation model for cryptocurrency or digital assets where there is an active market. Under this model the crypto tokens and assets are revalued at the end of each reporting period based on the active market cost price at that date. Revaluation gains received are accumulated in the reserves and released into retained earnings upon disposal.

At the end of each reporting period, the Company and Group is required to assess whether there is any indication an asset may be impaired. If there is an indication that an asset may be impaired then the company will calculate the asset's recoverable amounts, which is the higher of the fair value less costs of disposal and the value in use. If the recoverable amount of a crypto token or asset is below the carrying amount, an impairment loss will be recognised.

2.9

Tangible fixed assets

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.

Depreciation is provided on the following basis:

Long-term leasehold property	-	13%	straight line
Office equipment	-	20%	straight line
Computer equipment	-	20%	straight line

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.

Page 29

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Consolidated Profit and Loss Account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in profit or loss for the period.

2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.12

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Statement of Financial Position when the Group 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly

Page 30

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.12

Financial instruments (continued)

traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic 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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Page 31

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.12

Financial instruments (continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

2.13

Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or Cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

2.14

Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

2.15

Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Page 32

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.16

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

Page 33

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements, apart from those involving estimates, have had the most significant effect on amounts recognised in the financial statements.

Indefinite life intangible assets

Crypto assets or tokens have no physical attributes and will be accounted for as intangible assets under FRS102 with an indefinite useful life, unless they are held for sale in the ordinary course of business. FRS 102 states that all intangible assets are deemed to have a finite life. Therefore to apply indefinite life requires a true and fair override of FRS 102. Indefinite life best reflects the substance of cryptocurrencies.

Valuation of crypto assets

Revenue earned from nomination activities has been presented net of commission due to validators being considered a principal in the transaction in accordance with sections 23A 37-41 of FRS 102.

The value of digital assets received under standalone customer contracts and through staking rewards for which there is an active market are measured by reference to the market value per token.

Useful expected life of depreciable assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates related to technological obsolescence that may change the utility of computer, fixtures, fittings and office equipment.

Indicators of impairment

Management has concluded that no impairment of tangible fixed assets is required as the value of the computer equipment, leasehold, land and buildings and fixtures and fittings are not tied to the success of Parity financially.

Management has assessed the Group's intangible fixed assets for impairment and concluded that no impairment is required. The assets are carried under the revaluation model, and their carrying values are supported by observable prices in an active market.

Page 34

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Turnover

An analysis of turnover by class of business is as follows:
	2025	2024
	£000	£000

Assistance with building of blockchain infrastructure	27,156	26,720
Staking rewards	1,898	13,801
	29,054	40,521

Analysis of turnover by country of destination:

					2025	2024
					£000	£000

Rest of the world	29,054	40,521
	29,054	40,521

5.	Other operating income
		2025	2024
		£000	£000

Interest income	2,697	2,253
Grants and Other income	781	1,678
	3,478	3,931

Page 35

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Exchange differences	88	3,151
Grants and Other Income	(781)	(1,678)
Depreciation of owned Tangible fixed assets	338	139
Loss on disposal of tangible fixed assets	3	56
Loss on disposal of Intangible Assets	-	281,481
Waiver of share options	188	278

Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to a loss £88,000 (2024: £3,151,432 loss).

7.	Auditors' remuneration
	During the year, the Group obtained the following services from the Company's auditors:

					2025	2024
					£000	£000


Audit of the financial statements of the group and company	200	215
Non-audit services	5	5
	205	220

Page 36

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

8.	Employees
	Staff costs, including directors' remuneration, were as follows:

Group	Group	Company	Company
2025	2024	2025	2024
£000	£000	£000	£000


Wages and salaries	18,063	26,719	6,659	6,868
Social security costs	2,341	2,389	1,048	997
Cost of defined contribution scheme	175	50	46	48
	20,579	29,158	7,753	7,913

The average monthly number of employees, including the directors, during the year was as follows:

	Group	Group	Company	Company
	2025	2024	2025	2024
	No.	No.	No.	No.

Average monthly number of employees, including the directors, during the year	98	107	38	39

9.	Directors' remuneration
		2025	2024
		£000	£000

Directors' emoluments	262	231
Group contributions to defined contribution pension schemes	3	3
	265	234

	The highest paid director received remuneration of £177,732 (2024 - £140,269).
	The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,321 (2024 - £1,321).

The number of directors for whom retirement benefits are accruing under defined contribution schemes amount to 2 (2024: 2)

Page 37

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

10.	Interest payable and similar expenses
		2025	2024
		£000	£000

	Other interest payable	24	2,867
		24	2,867

Corporation tax
Current tax on profits for the year	(3,040)	(3,797)
	(3,040)	(3,797)
Foreign tax
Foreign tax on income for the year	383	563
	383	563
Total current tax	(2,657)	(3,234)

Deferred tax
Deferred tax - current year	(2,532)	(330)
Total deferred tax	(2,532)	(330)


	Tax on loss	(5,189)	(3,564)

Page 38

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

11.Taxation (continued)

Loss on ordinary activities before tax

(38,592)

(298,905)

Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	(9,648)	(74,726)
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	5,970	71,978
Other timing differences leading to an increase (decrease) in taxation	1,499	(418)
Foreign tax on income for the year	383	563
Other tax charge (relief)	1,233	(919)
Other adjustments	(4,626)	(42)
Total tax charge for the year	(5,189)	(3,564)

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 39

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

12.	Intangible assets
	Group

		Cryptocurrency
		£000
	Cost
	At 1 January 2025	134,088
	Additions	12,986
	Disposals	(8,770)
	Revaluation deficit	(105,951)
	Foreign exchange movement	22
	At 31 December 2025	32,375

	Net book value
	At 31 December 2025	32,375
	At 31 December 2024	134,088

	Company

		Cryptocurrency
		£000
	Cost
	At 1 January 2025	133,980
	Additions	12,986
	Disposals	(8,770)
	Revaluation deficit	(105,847)
	At 31 December 2025	32,349

	Net book value
	At 31 December 2025	32,349
	At 31 December 2024	133,980

Page 40

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

13.	Tangible fixed assets
	Group

	Long-term leasehold property	Fixtures and fittings	Computer equipment	Total
	£000	£000	£000	£000
Cost or valuation
At 1 January 2025	180	1,069	278	1,527
Additions	-	709	111	820
Disposals	-	(39)	(8)	(47)
Exchange adjustments	(3)	-	-	(3)
At 31 December 2025	177	1,739	381	2,297
Depreciation
At 1 January 2025	79	422	103	604
Charge for the year on owned assets	28	245	65	338
Depreciation eliminated on disposal	-	(38)	(3)	(41)
Exchange adjustments	(4)	(45)	-	(49)
At 31 December 2025	103	584	165	852
Net book value
At 31 December 2025	74	1,155	216	1,445
At 31 December 2024	101	647	174	922

Page 41

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

13.Tangible fixed assets (continued)

	Company

	Fixtures and fittings	Computer equipment	Total
	£000	£000	£000
Cost or valuation
At 1 January 2025	4	278	282
Additions	-	111	111
Disposals	-	(8)	(8)
At 31 December 2025	4	381	385
Depreciation
At 1 January 2025	1	103	104
Charge for the year on owned assets	1	65	66
Depreciation eliminated on disposal	-	(3)	(3)
At 31 December 2025	2	165	167
Net book value
At 31 December 2025	2	216	218
At 31 December 2024	3	174	177

Page 42

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

14.	Investments
	Group

		Unlisted investments
		£000

	At 1 January 2025	214
	Reclassification to debtors	(214)
	At 31 December 2025	-

	Company

	Investments in subsidiary companies	Unlisted investments	Total
	£000	£000	£000
Cost or valuation
At 1 January 2025	1,009	214	1,223
Revaluation	(9)	(214)	(223)
At 31 December 2025	1,000	-	1,000

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Registered office	Class of shares	Holding

Parity Technologies Germany GMBH	Germany	Ordinary	100%
Parity Technologies Singapore Pte. Ltd	Singapore	Ordinary	100%
Unstoppable Open Source Technologies Unipessoal LDA	Portugal	Ordinary	100%
Parity Technologies AG (Incorporated 5 July 2024)	Switzerland	Ordinary	100%

Page 43

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Subsidiary undertakings (continued)

The aggregate of the share capital and reserves as at 31 December 2025 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:
Name	Aggregate of share capital and reserves	Profit/(Loss)
	£000	£000

Parity Technologies Germany GMBH	955	538
Parity Technologies Singapore Pte. Ltd	-	658
Unstoppable Open Source Technologies Unipessoal LDA	-	167
Parity Technologies AG (Incorporated 5 July 2024)	94	301

Page 44

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

15.

Debtors

Group	Group	Company	Company
2025	2024	2025	2024
£000	£000	£000	£000


Amounts owed by group undertakings	-	-	-	671
Other debtors	51,989	64,982	51,510	64,730
Prepayments and accrued income	2,917	2,174	2,874	2,139
Amounts recoverable on long-term contracts	-	1,512	-	1,512
Deferred taxation	908	-	908	-
	55,814	68,668	55,292	69,052

16.	Cash and cash equivalents
		Group	Group	Company	Company
		2025	2024	2025	2024
		£000	£000	£000	£000

Cash at bank and in hand	6,384	6,395	6,172	5,992
	6,384	6,395	6,172	5,992

17.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£000	£000	£000	£000

Trade creditors	407	278	240	101
Amounts owed to group undertakings	-	-	8,180	11,651
Corporation tax	52	(2,120)	-	(2,400)
Other taxation and social security	498	647	207	275
Other creditors	520	5,086	44	85
Accruals and deferred income	7,622	8,136	5,831	6,945
	9,099	12,027	14,502	16,657

Page 45

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

18.	Retirement benefit scheme
		2025	2024
		£000	£000


CoS staff pension costs	145	44
Staff pension costs	30	6
	175	50

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

19.	Deferred taxation
	Group

		2025
		£000

	At beginning of year	(19,413)
	Charged to profit or loss	7,310
	Charged to other comprehensive income	17,789
	Derecognised in year	(4,778)
	At end of year	908

Page 46

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

19.Deferred taxation (continued)

Company

		2025
		£000

	At beginning of year	(19,413)
	Charged to profit or loss	7,310
	Charged to other comprehensive income	17,789
	Derecognised in year	(4,778)
	At end of year	908

The deferred taxation balance is made up as follows:
	Group	Group	Company	Company
	2025	2024	2025	2024
	£000	£000	£000	£000

Accelerated capital allowances	(54)	(44)	(54)	(44)
Tax losses carried forward	554	(23,859)	554	(23,859)
Retirement benefit obligation	1	4	1	4
Disallowed interest	-	39	-	39
Unused trade losses	4,773	4,035	4,773	4,035
Unused capital losses	412	412	412	412
Derecognised in year	(4,778)	-	(4,778)	-
	908	(19,413)	908	(19,413)

As at 31 December 2025, the Company had unused trading losses carried forward of £19,110,481, available for offset against future taxable profits. No deferred tax asset has been recognised in respect of these losses (amounting to £4,777,620 at the enacted tax rate of 25%), as the directors consider it not probable that the losses will be utilised against the reversal of deferred tax liabilities or other future taxable profits.

20.	Share capital
		2025	2024
		£000	£000

Allotted, called up and fully paid

8,106 (2024 - 8,106) Ordinary shares of £0.01 each	0.08	0.08

Page 47

PARITY TECHNOLOGIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

21.

Reserves

Revaluation reserve

The revaluation reserve represents the deficit arising on the revaluation of certain non-current intangible assets. The reserve is not distributable.

Foreign exchange reserve

The foreign currency translation reserve represents exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from that of the Group's presentation currency. The movement in foreign currency translation reserves is presented in the consolidated statement of changes in equity.

Other reserves

Other reserves relate to unused capital losses within PTH.

Profit and loss account

The Retained Earnings account represents cumulative profits and losses net of dividends paid and other adjustments.

22.

Related party transactions

At year-end, the Company and the Group had an outstanding balance due from Parity Technologies Holdings, an entity under common control. The amount due to the Company was £50,519,881 (2024: £64,099,407).

During the year ended 31 December 2024, PTL transferred DOT tokens to PTH company (for consideration left outstanding). The fair value (and market value for United Kingdom corporation tax purposes) of the DOT transferred was determined with input from independent third-party valuation specialists. The valuation incorporated significant unobservable inputs and applied a weighted average discount rate to reflect transaction-specific factors including market conditions and market imposed restrictions on transferability.

23.	Controlling party

The immediate parent undertaking of Parity Technologies Limited is Parity Technologies Holdings ("PTH"), a company incorporated in the Cayman Islands.

The ultimate controlling party of Parity Technologies Limited is Dr Gavin James Hoyle by virtue of his shareholdings.

Page 48