Company Number: 13130725

Analysis Date: 2025-07-20 13:11 UTC

1. Risk Rating: MEDIUM
   The company demonstrates a reasonable net asset position and positive working capital in its latest accounts. However, consistent losses, reliance on a parent company for funding, and limited operational history since incorporation in 2021 indicate moderate risk.

2. Key Concerns:

• Ongoing Losses: The company incurred a substantial loss of £977,759 in the 2023 financial year, continuing a pattern of significant annual losses due to heavy investment in R&D. This impacts accumulated reserves and raises concerns about sustainable profitability.
• Dependence on Parent Funding: The financial statements disclose that losses have been funded by the parent company (Nuntius Therapeutics Inc.) and that the going concern assumption relies heavily on continued financial support from this entity. Any change in this support could materially affect solvency.
• Limited Share Capital and Equity Structure: The issued share capital is nominal (£33,826), and while shareholder funds increased to £736,756 in 2023, this is primarily due to equity conversion of a loan from the parent. The company remains relatively small with minimal tangible fixed assets and limited operational scale.

3. Positive Indicators:

• Strong Liquidity Position: As of 31 December 2023, the company held £454,805 in cash and had net current assets of £645,003, indicating an ability to meet short-term obligations.
• No Overdue Filings or Compliance Issues: Accounts and confirmation statements are up to date with no overdue filings, suggesting sound regulatory compliance and governance.
• Growing Shareholder Funds: Shareholders’ funds have increased year-on-year, reflecting capital injections via share issuance and loan conversions, which improve financial stability.

4. Due Diligence Notes:

• Review Parent Company Financial Health: Assess Nuntius Therapeutics Inc.’s financial strength and willingness to continue funding the UK subsidiary, as the latter’s going concern depends on this support.
• Examine Detailed R&D Pipeline and Milestones: Understand the commercial viability and timeline of the company’s biotech research to evaluate future revenue potential and cash flow generation.
• Investigate Lease Obligations and Other Commitments: The company holds a lease commitment of £8,379 for the next year; assessing other off-balance-sheet liabilities or contingent liabilities is recommended.
• Clarify Share-Based Payment Arrangements: Although no material expense was recognized, further details on the scope of equity incentives and potential dilution effects could be informative.
• Confirm Directors’ Background and Conduct Records: Both directors appear active with no disclosed disqualifications, but verifying their track records in biotech ventures could provide additional insight.