The amortization method and amortization period for the principal categories of intangible assets are follows:

Going concern

The Company’s consolidated financial statements have been presented on the basis that it is a going concern. The Company has not generated any revenues from operations to date and does not expect to in the foreseeable future. As such, the Company has incurred recurring net losses, has an accumulated deficit totaling £252.3 million and cash flows used in operating activities of £7.5 million as of and for the year ended December 31, 2025. The Company had £24.3 million of cash and cash equivalents at December 31, 2025.

In reviewing the going concern assessment the Company’s board of directors have considered a going concern period of 12-months from the issuance of these financial statements. Based on our current operating budgets and development plans, our cash and cash equivalents on hand will be sufficient to fund our anticipated operations for the entirety of the going concern assessment period. The board of directors is therefore satisfied that it is appropriate to adopt the going concern basis of accounting in preparing the financial statements.

As the Company continues to incur losses, the transition to profitability is dependent upon the successful development, approval and commercialization of its product candidates and achieving a level of revenues adequate to support its cost structure. The Company may never achieve profitability, and unless and until it does, it will continue to need additional capital beyond the going concern assessment period. The Company may also need to raise additional funds if it chooses to expand its current development program. There can be no assurances, however, that additional funding will be available on acceptable terms.

2. Material accounting policies (continued)

Recognition of clinical trial expenses

As part of the process of preparing our consolidated financial statements, we may be required to estimate accrued or prepaid expenses related to our clinical trials. In order to obtain reasonable estimates, we review open contracts and master service agreements. In addition, we communicate with applicable personnel in order to identify services that have been performed, but for which we have not yet been invoiced, and services not yet performed for which we have been invoiced in advance. In most cases, our vendors provide us with monthly invoices in arrears for services performed. The following are examples of our accrued expenses:

Accruals for clinical trial expenses, including estimated amounts recognized consistent with the above policy, were £2.4 million at December 31, 2025 as compared to £4.9 million at December 31, 2024. This includes accruals for investigator fees of £2.4 million at December 31, 2025 as compared to £3.9 million at December 31, 2024.

Prepayments for clinical trial expenses, including estimated amounts recognized consistent with the above policy, were £0.4 million at December 31, 2025 as compared to £0.4 million at December 31, 2024. These amounts include sums that are expected to be utilized over the period of the associated trials, which in some cases could be greater than one year.

Cash and cash equivalents

Cash and cash equivalents in the statement of financial position include cash at banks with deposit maturity terms of three months or less.

Calculation of recoverable amount

The recoverable amount of assets and cash-generating units is the higher of their 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 an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

Included in research and development expenses:

The average number of staff employed under contracts of service were:

Loss before tax is stated after charging:

The major components of income tax for the years ended December 31, 2025, 2024 and 2023 are as follows:

The following amounts are recognized in the statements of operations with respect to lease contracts: