Red Pill Productions Limited

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

1. General Information

Red Pill Productions Limited is a private company, limited by shares, incorporated in England & Wales, registered number 07079205 . The registered office is Floor 24, The Shard, 32 London Bridge St, London, United Kingdom, SE1 9SG.

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.

Reporting Period

The financial statements cover the 18-month period from 1 July 2024 to 31 December 2025. The comparative figures relate to the 6 month period ended 30 June 2024. As a result, the comparative amounts presented in the financial statements are not directly comparable.

2.2. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of value added taxes. Turnover is measured by reviewing the actual services performed against the total services to be provided and is only recognised if it can be estimated reliably.

2.3. Intangible Fixed Assets and Amortisation - Other Intangible

Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is calculated, using the straight-line method, to allocate the depreciable amount of assets to their residual values over their estimated useful life of 10 years.

Costs associated with maintaining computer software are recognised as an expense incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the company are recognised as intangible assets where the relevant criteria under FRS 102 are met.

2.4. 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 and machinery	25% straight line & 20% straight line
Fixtures and fittings	33% straight line
Computer equipment	33% straight line

2.5. Leasing and Hire Purchase Contracts

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

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Red Pill Productions Limited

Notes to the Financial Statements (continued)

For the Period 1 July 2024 to 31 December 2025

2.6. Financial Instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade debtors and creditors are classified as basic financial instruments and are recognised at transaction price less any impairment. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Other debtors and creditors are measured at amortised cost using the effective interest rate method.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received.

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

The taxation expense represents the sum of the tax currently payable and deferred tax. Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the profit and loss account 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.

...CONTINUED

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Red Pill Productions Limited

Notes to the Financial Statements (continued)

For the Period 1 July 2024 to 31 December 2025

2.8. Taxation - continued

Deferred tax

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 asset reflects 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.

2.9. Pensions

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

3. Average Number of Employees

	31 December 2025	30 June 2024
Average number of employees, including directors, during the year	12	24

	12	24

4. Intangible Assets

	Development costs
	£
Cost
As at 1 July 2024	429,186

As at 31 December 2025	429,186

Amortisation
As at 1 July 2024	42,724
Provided during the period	64,378

As at 31 December 2025	107,102

Net Book Value
As at 31 December 2025	322,084

As at 1 July 2024	386,462

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Red Pill Productions Limited

Notes to the Financial Statements (continued)

For the Period 1 July 2024 to 31 December 2025

5. Tangible Assets

	Plant and machinery	Fixtures and fittings	Computer equipment	Total
	£	£	£	£
Cost
As at 1 July 2024	14,158	61,367	27,744	103,269
Additions	-	-	3,059	3,059

As at 31 December 2025	14,158	61,367	30,803	106,328

Depreciation
As at 1 July 2024	252	50,231	9,114	59,597
Provided during the period	5,249	10,076	14,571	29,896

As at 31 December 2025	5,501	60,307	23,685	89,493

Net Book Value
As at 31 December 2025	8,657	1,060	7,118	16,835

As at 1 July 2024	13,906	11,136	18,630	43,672

6. Debtors

	31 December 2025	30 June 2024
	£	£
Due within one year
Trade debtors	49,887	263,517
Other debtors	28,168	156,186

	78,055	419,703

7. Creditors: Amounts Falling Due Within One Year

	31 December 2025	30 June 2024
	£	£
Trade creditors	8,879	202,303
Bank loans and overdrafts	115	-
Other creditors	62,408	446,788
Taxation and social security	4,756	33,966

	76,158	683,057

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Red Pill Productions Limited

Notes to the Financial Statements (continued)

For the Period 1 July 2024 to 31 December 2025

8. Deferred Taxation

We have calculated deferred tax and recorded the movement in accounts for current year and carried forward the deferred tax liability.

The provision for deferred tax is made up as follows:

	31 December 2025	30 June 2024
	£	£
Other timing differences	64,000	111,000

9. Other Commitments

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

	31 December 2025	30 June 2024
	£	£
Not later than one year	195	-

	195	-

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		31 December 2025		30 June 2024
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		322,084		386,462
Tangible Assets	5		16,835		43,672

			338,919		430,134
CURRENT ASSETS
Debtors	6	78,055		419,703
Cash at bank and in hand		565,322		1,534,875

		643,377		1,954,578
Creditors: Amounts Falling Due Within One Year	7	(76,158 )		(683,057 )

NET CURRENT ASSETS (LIABILITIES)			567,219		1,271,521

TOTAL ASSETS LESS CURRENT LIABILITIES			906,138		1,701,655

PROVISIONS FOR LIABILITIES
Deferred Taxation	8		(64,000 )		(111,000 )

NET ASSETS			842,138		1,590,655

CAPITAL AND RESERVES
Called up share capital			2		3
Capital redemption reserve			1		-
Profit and Loss Account			842,135		1,590,652

SHAREHOLDERS' FUNDS			842,138		1,590,655