Condense Reality Ltd

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

1. General Information

Condense Reality Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 11913233 . The registered office is Watershed Studio 5, 1 Canon's Road, Bristol, BS1 5TX.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Going Concern Disclosure

The directors intend to wind up the company. As a result, the financial statements have not been prepared on a going concern basis. No adjustments were needed to bring assets and liabilities to their realisable values

2.3. Turnover

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

Sale of goods

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

Rendering of services

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

2.4. 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	50% straight line
Fixtures & Fittings	50% straight line
Computer Equipment	50% straight line

2.5. 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.

2.6. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

...CONTINUED

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Condense Reality Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

2.6. Taxation - continued

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

2.7. 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.

2.8. 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.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 5 (2025: 12)

4. Tangible Assets

	Plant & Machinery	Fixtures & Fittings	Computer Equipment	Total
	£	£	£	£
Cost
As at 1 April 2025	45,691	5,782	218,587	270,060
Disposals	(35,019 )	(5,782 )	(198,582 )	(239,383 )

As at 31 March 2026	10,672	-	20,005	30,677

Depreciation
As at 1 April 2025	40,377	5,501	171,939	217,817
Provided during the period	2,200	247	43,937	46,384
Disposals	(35,019 )	(5,748 )	(196,654 )	(237,421 )

As at 31 March 2026	7,558	-	19,222	26,780

Net Book Value
As at 31 March 2026	3,114	-	783	3,897

As at 1 April 2025	5,314	281	46,648	52,243

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Condense Reality Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

5. Debtors

	2026	2025
	£	£
Due within one year
Trade debtors	1,200	70,142
Prepayments and accrued income	1,732	2,191
Other debtors	176	1,671

	3,108	74,004

6. Creditors: Amounts Falling Due Within One Year

	2026	2025
	£	£
Other taxes and social security	7,951	39,169
Other creditors	760,614	751,595
Accruals and deferred income	921	34,857
Directors' loan accounts	1,418	11,703

	770,904	837,324

7. Share Capital

	2026	2025
	£	£
Allotted, Called up and fully paid	189	188

8. Financial Instruments

A convertible loan of £500,000 was paid to the company in the year ending 31 March 2024. The loan notes will be converted to equity in lieu of repayment upon one of the agreed conversion criteria being met. If one of the agreed conversion criteria is not met, then the loan must be repaid to the lender.

An additional convertible loan of £250,000 was paid to the company in the year ending 31 March 2025. The loan notes will be converted to equity in lieu of repayment upon one of the agreed conversion criteria being met. If one of the agreed conversion criteria is not met, then the loan must be repaid to the lender.

9. Other Commitments

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

	2026	2025
	£	£
Not later than one year	-	10,364

	-	10,364

10. Post Balance Sheet Events

After the year end, the directors decided to wind up the company.

As part of this, the convertible loan note held by BBC (£500,000 at the year end) will be settled by transferring the company’s intellectual property to BBC, in full and final settlement. This intellectual property is not recognised on the balance sheet.

The convertible loan note held by S4C (£250,000 at the year end) will be settled by paying all remaining cash at bank to S4C on dissolution. Any amounts left unpaid on either loan note will be waived. No adjustment has been made to these financial statements for these events.

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Condense Reality Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2026

11. Controlling Party

There is no ultimate controlling party of the company.

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		2026		2025
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	4		3,897		52,243

			3,897		52,243
CURRENT ASSETS
Debtors	5	3,108		74,004
Cash at bank and in hand		73,303		136,574

		76,411		210,578
Creditors: Amounts Falling Due Within One Year	6	(770,904 )		(837,324 )

NET CURRENT ASSETS (LIABILITIES)			(694,493 )		(626,746 )

TOTAL ASSETS LESS CURRENT LIABILITIES			(690,596 )		(574,503 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(1,465 )		(13,061 )

NET LIABILITIES			(692,061 )		(587,564 )

CAPITAL AND RESERVES
Called up share capital	7		189		188
Share premium account			3,807,241		3,807,241
Profit and Loss Account			(4,499,491 )		(4,394,993 )

SHAREHOLDERS' FUNDS			(692,061)		(587,564)