Sierra Medical Ltd

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—6

1. General Information

Sierra Medical Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 13115958 . The registered office is Ketton Suite, The King Centre Main Road, Barleythorpe, Oakham, Rutland, LE15 7WD.

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.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

2.2. Going Concern Disclosure

The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern. Therefore the financial statements have been prepared on a going concern basis which assumes the Company will continue in operational existence for the foreseeable future.

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

2.3. Intangible Fixed Assets and Amortisation - Other Intangible

Other intangible assets are Patents. They are amortised to profit and loss account over their estimated economic life of 7 years.

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

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 & Machinery	Straight line over 3 years
Computer Equipment	Straight line over 3 years

2.5. Financial Instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and bank balances, are measured at transaction price including transaction costs.

Classification of 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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, are recognised at transaction price including transaction costs.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities.

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Sierra Medical Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2026

2.6. 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 profit / loss before taxation.

2.7. Taxation

Tax is recognised in profit or loss except that a charge is attributable to an item of income and expense recognised as other comphrehensive income or to an item recognised directly in equity is also recognised in other comphrehensive 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 balance sheet date in the countries where the company operates and generates income.

2.8. 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.

2.9. Government Grant

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

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

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

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

2.10. Research and Development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific cirteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives.

If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

2.11. Convertible Debt

Compound financial instruments issued by the Company comprise convertible loan notes that can be converted to share capital at the option of the holder. The interest on the loan notes is compounding annually and as such the number of shares to be issued will vary with changes in the fair value.

Due to the varying number of shares to be issued the loan notes are treated as liabilities and not split between equity and liabilities. The liability is initially and subsequently measured at fair value, with the fair value movements recognised in the Statement of Comprehensive Income.

Transaction costs that relate to the issue of the instrument are expensed to the Statement of Comprehensive Income.

2.12. Share Based Payments

The company operates an equity-settled, share-based compensation plan, under which the entity received services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.

The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.

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Sierra Medical Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2026

3. Average Number of Employees

Average number of employees, including directors, during the year was: 5 (2025: 4)

4. Intangible Assets

	Other
	£
Cost
As at 1 February 2025	121,925

As at 31 January 2026	121,925

Amortisation
As at 1 February 2025	46,766
Provided during the period	17,418

As at 31 January 2026	64,184

Net Book Value
As at 31 January 2026	57,741

As at 1 February 2025	75,159

5. Tangible Assets

	Plant & Machinery	Computer Equipment	Total
	£	£	£
Cost
As at 1 February 2025	50,536	7,662	58,198
Additions	-	1,482	1,482

As at 31 January 2026	50,536	9,144	59,680

Depreciation
As at 1 February 2025	37,310	3,112	40,422
Provided during the period	8,229	2,302	10,531

As at 31 January 2026	45,539	5,414	50,953

Net Book Value
As at 31 January 2026	4,997	3,730	8,727

As at 1 February 2025	13,226	4,550	17,776

6. Debtors

	2026	2025
	£	£
Due within one year
Prepayments and accrued income	-	95,826
Other debtors	21,386	7,515
Corporation tax recoverable	134,639	61,516
VAT	7,102	7,589

	163,127	172,446

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Sierra Medical Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2026

7. Creditors: Amounts Falling Due Within One Year

	2026	2025
	£	£
Trade creditors	13,237	7,535
Other taxes and social security	19,150	14,734
Other creditors	2,540	2,500
Accruals and deferred income	58,901	6,550

	93,828	31,319

8. Creditors: Amounts Falling Due After More Than One Year

	2026	2025
	£	£
Other loans	20,000	130,892
Other creditors	5,000	5,000

	25,000	135,892

9. Loans

An analysis of the maturity of loans is given below:

	2026	2025
	£	£
Amounts falling due between one and five years:
Other loans	20,000	130,892

10. Share Capital

	2026	2025
Allotted, called up and fully paid	£	£
1,375,466 Ordinary Shares of £ 0.000001 each	1	1

On 1st March 2025, 36,577 Ordinary shares of £0.000001 each were converted per loan notes at a value of £3.04968 per share.

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		2026		2025
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		57,741		75,159
Tangible Assets	5		8,727		17,776

			66,468		92,935
CURRENT ASSETS
Debtors	6	163,127		172,446
Cash at bank and in hand		185,414		217,929

		348,541		390,375
Creditors: Amounts Falling Due Within One Year	7	(93,828 )		(31,319 )

NET CURRENT ASSETS (LIABILITIES)			254,713		359,056

TOTAL ASSETS LESS CURRENT LIABILITIES			321,181		451,991

Creditors: Amounts Falling Due After More Than One Year	8		(25,000 )		(135,892 )

NET ASSETS			296,181		316,099

CAPITAL AND RESERVES
Called up share capital	10		1		1
Share premium account			1,011,824		900,275
Other reserves			641,341		34,744
Profit and Loss Account			(1,356,985 )		(618,921 )

SHAREHOLDERS' FUNDS			296,181		316,099