REGISTERED NUMBER: 04260219 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

IRED LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

A Singhvi

L Masse

D E Heath

SECRETARY:

L Masse

REGISTERED OFFICE:

Unit 6 The Old Flour Mill

Queen Street

Emsworth

PO10 7BT

REGISTERED NUMBER:

04260219 (England and Wales)

AUDITORS:

Lewis Brownlee (Chichester) Limited

Statutory Auditors

Appledram Barns

Birdham Road

Chichester

West Sussex

PO20 7EQ

FIXED ASSETS

Tangible assets

4

130,730

162,767

CURRENT ASSETS

Stocks

172,618

122,635

Debtors

5

599,902

615,686

Cash at bank and in hand

236,228

208,327

1,008,748

946,648

CREDITORS

Amounts falling due within one year

6

1,775,030

1,297,258

NET CURRENT LIABILITIES

(766,282

)

(350,610

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(635,552

)

(187,843

)

CREDITORS

Amounts falling due after more than one year

7

5,174

20,943

NET LIABILITIES

(640,726

)

(208,786

)

CAPITAL AND RESERVES

Called up share capital

2,041

2,041

Share premium

98,959

98,959

Retained earnings

(741,726

)

(309,786

)

SHAREHOLDERS' FUNDS

(640,726

)

(208,786

)

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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2026 and were signed on its behalf by:

A Singhvi - Director

1.	STATUTORY INFORMATION

iRed 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.

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.

The presentational currency of the financial statements is Pound Sterling (£) which is rounded to the nearest Pound (£).

Going concern

The financial statements have been prepared on a going concern basis.

The directors have assessed the company's ability to continue as a going concern. The entity continues to be supported by its parent company, Volatus Aerospace Inc., which provides financial and operational assistance as required. This support enables the company to execute its growth strategy, which requires ongoing investment until it reaches a scale of operations capable of generating sustainable profitability. The directors assessment covers at least 12 months from the date of approving the financial statements. No events or uncertainties have been identified that, after considering the support from Volatus Aerospace Inc., are expected to cast significant doubt on the company's ability to continue as a going concern. The directors believe that Volatus Aerospace Corp. has adequate resources to continue to provide a sufficient level of support and based on this, the provision of a letter of support and current and previous actual provision of support, the directors consider it appropriate to prepare financial statements on the going concern basis. As of 31 December 2025, Volatus Aerospace Inc. has $41 million CAD in cash.

The directors therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. These financial statements do not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and balance sheet classifications that would be necessary if the company were unable to realise its assets and settle its liabilities as a going concern in the normal course of business. Such adjustments could be material.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised on dispatch of goods, and when the services have been provided.

Grant income

Grants relating to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Grants that become receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life as follows:

Plant and machinery

-

25% straight line

Fixtures and fittings

-

12.5% straight line

Motor vehicles

-

20% straight line

Computer equipment

-

25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Stocks

Stocks are valued at the lower of cost and net realisable value, on the average costing method, after making due allowance for obsolete and slow moving items.

Financial instruments

Financial instruments are classified by the director as basic or advanced following the conditions in FRS 102 section 11. Basic financial instruments are recognised at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. The company has no advanced financial instruments.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Share-based payments

Certain employees of the company are awarded share options in the ultimate parent company, Volatus Aerospace Inc. within a share option scheme. Each tranche is an award and is considered a separate award with its own vesting period and grant date fair value. The fair value of each tranche is measured at the date of grant using the Black-Scholes option pricing model. The compensation expense, and related parent company capital contribution, would be recognised over the tranche's vesting period based on the number of awards expected to vest. However, the directors believe the calculated charge is not material so the financial statements have not been adjusted to reflect this. The number of awards expected to vest is reviewed over the vesting period, with any forfeitures recognised immediately. The number of options outstanding at the year end was 83,665 (2024: 30,000).

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 20 (2024 - 17 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2025

215,426

140,429

50,455

35,025

441,335

Additions

6,300

3,905

10,599

17,774

38,578

Disposals

(15,518

)

(1,944

)

-

(6,542

)

(24,004

)

At 31 December 2025

206,208

142,390

61,054

46,257

455,909

DEPRECIATION

At 1 January 2025

123,483

115,210

15,396

24,479

278,568

Charge for year

44,081

6,633

12,211

6,186

69,111

Eliminated on disposal

(14,855

)

(1,760

)

-

(5,885

)

(22,500

)

At 31 December 2025

152,709

120,083

27,607

24,780

325,179

NET BOOK VALUE

At 31 December 2025

53,499

22,307

33,447

21,477

130,730

At 31 December 2024

91,943

25,219

35,059

10,546

162,767

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 January 2025

50,455

Additions

10,599

At 31 December 2025

61,054

DEPRECIATION

At 1 January 2025

15,396

Charge for year

12,211

At 31 December 2025

27,607

NET BOOK VALUE

At 31 December 2025

33,447

At 31 December 2024

35,059

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

101,947

214,179

Amounts owed by group undertakings

304,978

304,978

Other debtors

192,977

96,529

599,902

615,686

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Bank loans and overdrafts

4,409

10,397

Hire purchase contracts (see note 8)

18,205

13,132

Trade creditors

129,216

62,551

Amounts owed to group undertakings

1,513,032

891,148

Taxation and social security

37,375

182,708

Other creditors

72,793

137,322

1,775,030

1,297,258

The bank loan is a Bounce Back Loan, and is unsecured.

Hire purchase contracts are secured on the assets concerned.

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Bank loans

-

4,409

Hire purchase contracts (see note 8)

5,174

16,534

5,174

20,943

Hire purchase contracts are secured on the assets concerned.

8.	LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

Hire purchase

contracts

2025

2024

£

£

Net obligations repayable:

Within one year

18,205

13,132

Between one and five years

5,174

16,534

23,379

29,666

At 31 December 2025, the company had total commitments under non-cancellable operating leases over the remaining life of those leases of £Nil (2024: £29,077).

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Sam Ede BFP FCA FCCA (Senior Statutory Auditor)

for and on behalf of Lewis Brownlee (Chichester) Limited

10.	RELATED PARTY DISCLOSURES

The immediate parent company is Volatus Aerospace Corp. The ultimate parent undertaking and controlling party is Volatus Aerospace Inc.

The largest and smallest group for which consolidated accounts, including the company, are prepared is Volatus Aerospace Inc. The registered office of Volatus Aerospace Inc. 6221 Highway 7, Unit 6, Vaughan, Ontario L4H 0K8.

11.	POST BALANCE SHEET EVENTS

After the balance sheet date, the company has entered into a lease agreement for office premises, with a break clause after four years, with an annual rent of £7,200 plus VAT.