Final Results

Voyager is pleased to provide the Company's audited results for the period ended 31 March 2024.

As announced on 27 June 2024, the Company has an option to acquire M3 Helium Corp. ("M3 Helium"), a producer of helium based in Kansas and with an interest in six wells. There is no certainty that the Company's option to acquire M3 Helium will be exercised, nor that the enlarged group will successfully complete its re-admission to trading on the AQSE Growth Market.

Highlights in the Chairman's statement include:

• Preparation of the admission document for the proposed acquisition of M3 Helium Corp. is underway
• Proposed change of name to Mendell Helium plc
• Heads of terms signed to dispose of the Company's existing operations to another healthcare business

The Company's annual report and accounts for the year ended 31 March 2024 and notice of annual general meeting ("AGM") were posted on 27 September 2024 to Voyager's shareholders. The AGM will be held at 10.00 am on Wednesday 6 November 2024, at the Company's offices at Arran House, Arran Road, Perth, Perthshire PH1 3DZ.

Copies of the annual report and accounts and notice of AGM are available on the Company's website: https://www.voyagerlife.uk

CHAIRMAN'S STATEMENT

It is a pleasure to present Voyager's annual report and accounts for our financial year ended 31 March 2024.

My report this year begins post the year end as our most significant development took place after the financial year had concluded. On 27 June 2024, we announced that we had taken an option to acquire M3 Helium Corp. ("M3 Helium), a Kansas based producer of helium. Since taking that option, we have seen the ongoing development of that business and today M3 Helium has three wells in production and it expects a fourth to be in production before the end of October.

Investors may be aware of the growing global interest in helium, an element that has no natural substitute but a variety of everyday uses. Many people will think first of party balloons but medical, defence and space industries are the leading users of helium. There are many London listed natural resource companies - however, M3 Helium distinguishes itself as being a producer. And, by this, I mean that M3 Helium will be capable of finding, extracting, transporting and selling helium.

M3 Helium's operations in Kansas comprise, in part, the Hugoton gas field, one of the oldest gas producing locations in the US - spanning parts of Kansas, Oklahoma and Texas. The Hugoton is also perhaps one of the best known producers of helium.

A significant competitive advantage for M3 Helium is its partnership with Scout Energy Partners ("Scout"), the largest operator in the Hugoton field in Kansas. M3 Helium's wells are within reach of Scout's gathering system and, more importantly, its Jayhawk gas processing plant, a facility which is estimated by Scout to produce around 5 per cent. of the world's helium.

With M3 Helium's location in such a prospective location and with its ready access to infrastructure, we believe we have an option to acquire a low-cost, fast growing business in one of the world's most exciting natural resources regions.

Naturally it was a surprise to many when we announced our pivot away from plant-based health & wellness and into helium. It was not a decision that we took lightly.

We have said for some time now that the wider CBD and cannabis sectors were ready for consolidation. As is so often the case in newer, fast growing industries, a large number of companies were quickly established to chase the same goal. Forecasts predicted a rapid take up of cannabinoid-based products and investment understandably followed.

But as is also the case in newer sectors, forecasts in many ways were overly ambitious, the industry developed more slowly than predicted with slower take up amongst consumers than forecast and regulators understandably were cautious. Share prices came under pressure and investors became disillusioned.

At Voyager, we have always taken a cautious view. As far back as 2021 when we were just establishing the company, the board of directors predicted that the good times in the industry would not last forever. We implemented a low cost operating model and ensured we had a strong balance sheet. Our business developed well, as described more fully in the CEO's statement, but our belief was that, to attract long term investment and to make use of our stock market listing, we needed to expand the business through acquisition.

Since the Company listed on AQSE, acquisition opportunities presented themselves. I wrote this time last year about our proposed acquisition of a Polish manufacturing and extraction facility, with a view to extend our business into Europe and complete our vertical integration. Ultimately our plans were defeated by the lengthy and unpredictable process of securing Polish regulatory approval.

More recently, and at the start of 2024, we launched a further ambitious initiative to acquire Northern Leaf plc, a cultivator of medical cannabis in Jersey, Channel Islands. The transaction would have created one of Europe's few medical and over-the-counter cannabis operations, delivering scale and product diversity. The attractions were clear - Northern Leaf, which had spent around £30 million developing its facility was available to us for less than a tenth of that and investors were prepared to support the initiative. Disappointingly, the financial constraints of Northern Leaf could not outlast the fundraising process and this potential acquisition also failed.

As a board we explored other targets too. Although we were not successful, it is a testament to our team and our business model that, not only were we able to source a series of prospective merger partners but, in almost every case, the partner was a far larger business but available to us at a considerable discount to the investment they had made in the business themselves.

Ultimately, however, we could not wait indefinitely for the right opportunity and, as I indicated above, investor appetite for cannabis-based projects had waned. It is perhaps ironic that, as Voyager's plant-based health & wellness business was winning new and bigger customers, we took the difficult decision to go down a different path.

Over the previous twelve months we had secured several substantial customers. Pets at Home is perhaps our best known retail outlet but I can also report that Voyager-made products are available to buy in some of the UK's well known supermarkets, health stores and online retailers.

But building from this platform would require capital and the board, despite our successes and our proven ability to source acquisitions, could not be confident that investors would want to support us in these endeavours. Conversely, helium was a highly topical investment theme.

Some years ago, Nick Tulloch and I worked at Highlands Natural Resources plc ("Highlands"). Alongside us was Paul Mendell, former chairman of that company and the developer of some of its core projects. The three of us have stayed in touch and, before Voyager was founded, we looked at a different helium play in Kansas in the summer of 2020. The risk-reward profile of that opportunity was not favourable. The three of us went on to found Voyager, with Paul leaving ahead of the IPO to pursue other opportunities in the US - and ultimately to bring together a portfolio of assets under M3 Helium.

The combination of Voyager and M3 Helium, whilst unusual at first glance, in fact is reuniting business partners. It also marks the second occasion that the three of us have been involved in a pivot between natural resources and cannabis - Highlands performed its own transformation in 2019 and that company is now known as Chill Brands Group plc.

We stated in our shareholder circular on 1 July 2024, that we would put in place plans to dispose of our plant-based health and wellness operations as our focus is now on M3 Helium's prospects in Kansas and I am pleased to report that we have signed non-binding heads of terms to dispose of the Company's existing operations to another healthcare business. Completion will be subject to legally binding contracts and shareholder approval but, if our plans proceed as I expect them to, we will have successfully separated our helium and health & wellness operations whilst preserving our shareholders' interests in the success of both. There is still work to be done but we hope to update shareholders shortly.

We also hope to conclude our acquisition of M3 Helium in Q4 2024. Under the Aquis Rules, the transaction is classified as a reverse takeover and, consequently, is subject to the publication of an admission document. Although our immediate focus on taking the option over M3 Helium was to accelerate the development of that business, I am pleased to report that preparation of the admission document is well underway.

Ahead of that, the time has come to give Voyager a new name and I am pleased to announce our proposed change of name to Mendell Helium plc, in recognition of the outstanding work that Paul Mendell has done in putting that business together.

As always, the Voyager board welcomes shareholder interaction and feedback and we hope to see as many of our investors as possible at our AGM on 6 November 2024. Notice for the meeting is set out at the end of this annual report.

Eric Boyle

Non-Executive Chairman

CEO'S REVIEW

As our Chairman has written above, we have undertaken a change to our business following the end of the financial year. Although, by its nature, much of this annual report is backward looking on our operations during the year, our company is now very different to how we began the year.

When we report next year, we will report on our operations as a helium producer in Kansas and, based on what has been achieved in the short time since taking the option to acquire M3 Helium, I am confident that we have an exciting period ahead of us.

In the meantime, I am pleased to provide this summary of our achievements in the year to 31 March 2024. Just as we reported last year, the Company has four sources of income:

• White label and private label skincare manufacturing through our VoyagerCann division
• Sales through third party stores
• Sales through our own stores in St Andrews, Edinburgh and Dundee
• Online sales - comprising our own website along with third party sites and online marketplaces

I predicted last year that it would be items 1 and 2 in the above list, that would represent the biggest growth areas and that has indeed been the case. In November 2023, after an extensive courtship, we announced that Voyager's pet products would be sold online by Pets at Home. This relationship has continued to develop with Pets at Home re-ordering regularly and Voyager making up the largest contributor of hemp products on its website.

£,000

Shop revenue 142

Trade sales 125

Website and other sales 37

As a rule, we do not disclose names of customers that we contract manufacture for but we have reported some of our successes. Since September 2023, we have been manufacturing products for arguably one of the UK's highest profile CBD brands. As with Pets at Home, this partnership has continued to develop with further products made by us added to their range. Even at the time of writing, their biggest order to date is being processed in our manufacturing facility.

We were also pleased to announce in June 2024 that we had been selected to manufacture a new range for a very well known UK retailer, a leader in its particular field. Their indicative order was, at the time, our biggest to date although has since been surpassed by our CBD brand partner.

VoyagerCann

Following on from the above news, it is no surprise that VoyagerCann, established in February 2022, has become our best known division.

We offer two broad categories of service:

• White label which we define as manufacturing and supplying our existing formulations
• Private label which is either the adjustment of an existing formulation, perhaps for scent or CBD strength, or new product development

VoyagerCann offers a "shelf ready" solution providing, at the option of customers, a fully packaged, labelled and batch coded product supplied with all necessary accreditations for immediate sale. Many of our customers take advantage of this and it is not unusual for us to deliver orders directly to retailers, rather than to our customers themselves. Equally, we can provide supply products in bulk to our customers or a hybrid arrangement where we bottle products but customers carry out the final labelling and packaging themselves.

As our Chairman wrote above, the CBD industry is still characterised by a large number of brands, many of which are competing for the same end customer. Conversely, the number of specialist manufacturers of CBD products is considerably less and the board of directors felt that our company's fastest route to success was to become the manufacturer of choice for the industry.

Our values of integrity, quality and transparency coupled with fair pricing placed us well within the industry.

Own stores

In the latter part of the pandemic, we opened three retail stores aiming to provide accurate and honest information on our products and CBD generally. Initially supported by grants and reduced business rates, this strategy, which was aimed at being part of the community to make CBD mainstream, had some initial success - even now it is the largest single revenue contributor to Voyager. However, rising costs, particularly employment and utilities, alongside flatter revenues have made this a difficult area in which to operate.

In line with our culture, we ran a tight operation but, even before we secured the option to acquire M3 Helium, it was apparent to the board that our resources could be more efficiently applied to our manufacturing, wholesale and e-commerce divisions.

As an extension of that, and alongside our proposed acquisition of M3 Helium, we have examined alternative solutions for our three shops and have been working with our landlords in respect of a possible sublet or assignment. This will reduce the operating costs for the business going forward and, as our Chairman has explained, following disposal we expect to give our shareholders the opportunity to remain invested in the business that we have built. We are fortunate that our shops are located in popular retail locations and we have already received interest from new prospective tenants.

Online

Since Voyager commenced operations, we have used Wordpress to operate our websites but, during the course of this year, our team has been working on a plan to develop a new e-commerce website on the Shopify platform which we expect will give greater flexibility and capability. Coupled with this plan are a series of strategic initiatives to upgrade and extend our digital marketing reach. We have been working with IT consultants to deliver this and I am pleased that our new partners, following the combination of our two businesses, will continue this work.

It is well understood that online sales are capable of being higher margin than our other business lines and therefore replacing the investment in our bricks and mortar operations with an enhanced e-commerce strategy represents a natural development of our business at this stage.

Acquisition of Amphora Health Limited

On 30 January 2024, we announced that we had entered into an agreement to acquire Amphora Health Ltd ("Amphora"), owner of the Amphora and Infused Amphora brands which comprise a range of CBD oils, vapour products and accessories. The acquisition duly completed in March 2024.

The consideration payable was the issue of 416,666 new ordinary shares in Voyager. In addition, a further 416,666 new ordinary shares may be issued in the event that sales of Amphora or Infused Amphora branded products exceed £100,000 over the 24 month period from completion.

Infused Amphora is a British CBD wellness brand founded in 2020. The entire collection of its premium products are all natural, THC free and designed to help with a variety of everyday conditions. Most importantly, and a primary reason for our acquisition, is that the brand has 23 ingestible CBD products validated on the FSA's novel foods list, a potentially highly valuable asset in the CBD industry.

Also importantly, given potential changes in UK legislation, Amphora vapour products are not disposable but are currently sold in cartridges for use with a rechargeable battery and the formula can also be sold as an e-liquid for customers to refill their preferred vapour products themselves.

Amphora had inventories of £17,000 at the time of our acquisition and also owns several online domains, as well as registered trademarks in the UK, European Union, Republic of Korea and China. The Amphora website will be combined with Voyager's new website but the products on the novel foods list, coupled with the trademarks, provides considerable scope to monetise that brand.

The operations of Amphora were moved to Voyager's existing premises and therefore the acquisition did not entail any increase in overheads. No members of the Amphora team were employed by Voyager and none of the premises or storage facilities occupied by Amphora were included in the acquisition. On this basis, we have treated the transaction as an asset acquisition rather than a business acquisition.

Operations

Voyager employs 24 people of which 10 are based in our head office in Perth and the remainder work in our stores. As in previous years, we were the beneficiary of government employment grants but, as alluded to above, these were less than before at £2,400.

Aside from wage inflation and utility charges, costs were for the most part steady. Certain ingredient pricing increased as a result of conflicts around the world, particularly the Ukraine, but we were generally able to offset this through bulk purchases or more competitive sourcing of other products. VoyagerCann is also able in most instances to pass higher raw material costs onto our customers.

Outlook

As our Chairman has said, we have signed heads of terms to dispose of our health & wellness operations to another healthcare business. We are now working on concluding contracts and thereafter we will publish a circular convening a general meeting for shareholder approval of the transaction. As long term investors will know, we have worked hard to develop Voyager as a well recognised CBD and plant-based health & wellness business and therefore, as we move to become a helium producing business, it was important to us to find a means of disposing of these operations in a manner than enabled existing shareholders to retain the benefit of any future upside. We expect to announce further details shortly.

We have had a busy summer since announcing our option to acquire M3 Helium. That company now has three producing wells and, as Rost comes online shortly, that will soon become four. Together with M3 Helium, we have developed good relations with counterparties and other participants in the Kansas helium industry and we expect that to place our new business in good stead as we continue that expansion.

This coming year is about the operations of M3 Helium in Kansas and I look forward to reporting as Mendell Helium plc in the future.

Nick Tulloch

Chief Executive Officer

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

attributable to the equity holders (pence)

The year to which this consolidate statement of comprehensive income applies was the 12-month period from 1 April 2023 to 31 March 2024.

The accompanying notes form part of these financial statements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Voyager Life plc is registered in Scotland with number SC680788.

The financial statements were approved by the Board of Directors on 27 September 2024 and signed on their behalf by:

Eric Boyle Nick Tulloch

The accompanying notes form part of these financial statements.

CONSOLIDATED AND COMPANY STATEMENT OF CHANGES IN EQUITY

Group

The accompanying notes form part of these financial statements.

The following describes the nature and purpose of each reserve within equity:

The accompanying notes form part of these financial statements.

GENERAL INFORMATION

1.1 Group

Voyager Life plc ("Voyager" or "the Company") and its subsidiary (together "the Group") are primarily involved in the development and retail of products for the health and wellness market. The Company is a public limited company and is incorporated and domiciled in Scotland. The Company was incorporated on 12 November 2020 with Company Registration Number SC680788 and its registered office and principal place of business is Arran House, Arran Road, Perth, Perthshire PH1 3DZ, United Kingdom.

1.2 Company income statement

The Company has taken advantage of Section 408 of the Companies Act 2006 and has not included its own profit and loss account in these financial statements. The loss for the financial period dealt with in the accounts of the Company amounted to £1.077 million.

PRINCIPAL ACCOUNTING POLICIES

2.1 Basis of preparation

The Consolidated Financial Statements of the Group and Company have been prepared in accordance with UK-adopted international accounting standards and the requirements of the Companies Act 2006 and regulations made under it. The Consolidated Financial Statements have been prepared under the historical cost convention. The principal accounting policies are set out below and have, unless otherwise stated, been applied consistently for all periods presented in these Consolidated Financial Statements.

The financial statements are prepared in pounds sterling and amounts are rounded to the nearest thousand.

2.2 Basis of consolidation

The Group financial information incorporates the financial information of the Company and its subsidiaries undertaking, drawn up to 31 March 2024.

The subsidiaries included are as follows:

Subsidiaries are entities over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

Investments in subsidiaries are accounted for at cost less impairment.

Where necessary, adjustments are made to the financial information of subsidiaries to bring accounting policies into line with those used for reporting the operations of the Company. All intra-group transactions, balances, income and expenses are eliminated on consolidation.

2.3 Going concern

The Company has historically generated revenues from the sale of CBD and other plant-based health & wellness products although, to date, revenues have not proved sufficient to support all of its overheads. However, as explained above, the Company has subsequently taken an option to acquire the entire issued share capital of M3 Helium Corp. and move to become a producer of helium in Kansas, USA. The proposed sale of plant-based health & wellness business will remove a substantial part of the Company's overheads, primarily staff and property costs.

It is the Board's belief that, given the prevailing strong helium price, the Company will be better placed to attract investment with its new operations.

The Company is currently financed through investment by its shareholders and, since the end of the period, the Company raised £864,468, before costs, from the issue of shares. The Company made a loss for the period of £1.1 million before taxation and foreign exchange adjustments. Nonetheless, the Company held bank balances of £162,508 at the year end.

In assessing whether the going concern assumption is appropriate, the Directors take into account all available information for the foreseeable future, in particular for at least the twelve months from the date of approval of the financial statements. This information includes growing revenue opportunities, management prepared cash flows forecasts, the Company's current cash balances and the Company's existing and projected monthly running costs. Furthermore the Directors are mindful that, if the Company needs to raise further funds over the 12 months following approval of the financial statements in order to execute its strategy and for working capital, it has the ability to access additional financing, if required, over the next 12 months. Specifically, the Company successfully completed two fundraisings since the end of the financial year through the issue of new ordinary shares.

The Directors therefore have made an informed judgement at the time of approving the financial statements that there is a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.

2.4 Revenue recognition

Revenue is recognised at the fair value of the consideration received and represents amounts receivable for goods provided in the normal course of business net of sales incentives, discounts, returns and VAT.

Revenue is recognised when the performance obligations have been satisfied and the goods have been delivered to the customer. It is the Company's policy to sell its products to the end customer with a right of return within 30 days. Accumulated experience is used to estimate such returns at the time of sale at a portfolio level (expected value method). The number of products returned has been small and it is highly probable that a significant reversal in cumulative revenue recognised will not occur.

Sale of goods - trade customers

Sales to trade customers may be on credit terms. Invoices are generated at the time of order and goods are typically despatched on the same day. Revenue from the sales of goods is recognised when confirmation of delivery to the customer has been received under the terms of the contract and when the significant risks and rewards of ownership have been transferred to the customer.

Sale of goods - retail

Sales are recognised when the goods have been sold to the customer in-store or at trade fairs and the performance obligations have been satisfied, namely when the customer is in possession of the products. Retail sales are usually paid in cash or by credit or debit card. The recorded revenue is the amount of the sale (net of VAT) and the credit card fees are charged to administrative expenses.

Sale of goods - online

Payment of the transaction price is due immediately when the customer purchases the product and delivery is arranged in-house. Revenue is recognised when the goods are dispatched and the performance obligations have been satisfied. On-line sales are typically paid for by credit or debit card. The recorded revenue is the amount of the sale (net of VAT) and the credit card fees are charged to administrative expenses.

2.5 Foreign currency translation

Functional and presentation currency

Items included in the Historic Financial Information of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the 'functional currency'). The functional currency of the Group is pounds sterling. The Historic Financial Information is presented in pounds sterling which is the Company's and Group's functional currency and amounts are rounded to the nearest thousand.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where such items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated Statement of Comprehensive Income.

2.6 Employee benefits - defined contribution pension costs and private healthcare

The contributions are charged to the statement of comprehensive income as they become payable in accordance with the rules of the scheme. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the statement of financial position.

The Company also provides certain employees with private healthcare. Eligible employees opt into the scheme whereupon premiums are paid by the Company. These premiums are charged to the statement of comprehensive income as they become payable.

2.7 Investment in subsidiaries

Investment in subsidiaries comprises shares in the subsidiaries stated at cost less provisions for impairment.

2.8 Financial assets including trade and other receivables

Initial Recognition

Classification

Financial assets at amortised cost

Derecognition

A financial asset is derecognised when:

• the rights to receive cash flows from the asset have expired, or

Impairment

The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original expected interest rate (EIR). The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables (not subject to provisional pricing) and other receivables due in less than 12 months, the Company applies the simplified approach in calculating ECLs, as permitted by IFRS 9. Therefore, the Company does not track changes in credit risk, but instead, recognizes a loss allowance based on the financial asset's lifetime ECL at each reporting date.

The Company considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Company may also consider a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows and usually occurs when past due for more than one year and not subject to enforcement activity.

At each reporting date, the Company assesses whether financial assets carried at amortised cost are credit impaired.

A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

2.9 Financial liabilities including trade and other payables

Financial liabilities measured at amortised cost using the effective interest rate method include trade and other payables that are short term in nature. Financial liabilities are derecognised if the Company's obligations specified in the contract expire or are discharged or cancelled.

Trade payables other payables are non-interest bearing and are stated at amortised cost using the effective interest method.

2.10 Intangible assets

Identifiable intangible assets are recognised when the Company controls the asset, it is probable that future economic benefits attributed to the asset will flow to the Company and the cost of the asset can be reliably measured.

Intangible assets with finite lives are stated at acquisition cost less accumulated amortisation less any identified impairment. The amortisation period and method are reviewed at least annually and adjusted as appropriate.

Intangible assets comprise those acquired at the time of the acquisition of the Cannafull brand, website and customer lists and are being amortised on a straight-line basis over the expected useful economic life of three years which has been deemed by the Directors to be an appropriate period. Amortisation is charged to administrative expenses. The acquisition of Amphora Health Limited is treated as an asset acquisition and therefore also charged to administrative expenses.

Amortisation is provided on all intangible assets at rates calculated to write off the cost, less estimated residual value, of each asset on a straight-line basis over its expected useful life, as follows:

Identifiable assets acquired 3 years

Useful economic lives and estimated residual value are reviewed annually and adjusted as appropriate.

2.11 Tangible fixed assets

Tangible fixed assets are measured at historical cost less accumulative depreciation and any accumulative impairment losses. Historical cost includes expenditure that is directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less estimated residual value, of each asset on a straight-line basis over its expected useful life, as follows:

Fixtures, fittings and equipment 3-5 years

Motor vehicles 4 years

Right-of-use assets over the lease term

2.12 Impairment testing of intangible and tangible assets

At each balance sheet date, the Company assesses whether there is any indication that the carrying value of any asset may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

2.13 Leases

Leases are accounted for under IFRS 16. IFRS 16 distinguishes leases and service contract on the basis of whether an identified asset is controlled by a customer. A model where a right-of-use asset and a corresponding liability are recognised for all leases by lessees (i.e. all on balance sheet) except for short term leases and leases of low value assets.

The right-of use asset is initially measured at cost and subsequently measured at cost (subject to certain exceptions) less accumulated depreciation and impairment losses, adjusted for any remeasurement of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at that date. Subsequently the lease liability is adjusted for interest and lease payments, as well as the impact of lease modifications, amongst others.

The Group assesses whether a contract is, or contains, a lease at the inception of the contract. The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (less than £5,000 per annum, which are considered immaterial), which fall out of IFRS 16 scope and are charged to the statement of comprehensive income on a straight-line basis over the period of the lease.

2.14 Inventory

Inventory is measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out (FIFO) method. The carrying amount of inventory sold is recognised as an expense in the period in which the related revenue is recognised and earned.

The cost of inventories comprise all costs of purchase, costs of conversion (from raw materials to finished goods) and other costs incurred in bringing the inventories to their present location and condition.

Voyager Life plc incurs some costs of conversion on inventory items from white label and private label skincare manufacturing through its VoyagerCann division. These costs of conversion include costs directly related to production, such as direct labour as well as a systematic allocation of fixed and variable production overheads that are incurred in converting materials into finished goods.

Fixed production overheads are those indirect costs of production that remain relatively constant regardless of the volume of production, such as depreciation and maintenance of factory equipment and right-of-use assets used in the production process. Variable production overheads are those indirect costs of production that vary directly, or nearly directly, with the volume of production, such as indirect materials and indirect labour.

2.15 Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

2.16 Equity

Share capital is determined using the nominal value of shares that have been issued.

Equity-settled share-based payments are credited to a Share-based payment reserve as a component of equity until related options or warrants are exercised.

Retained loss includes all current and prior period results as disclosed in the income statement.

2.17 Share-based payments

During the year, the Company issued no share options to employees and no share warrants to advisers as part of their fees.

Equity-settled share-based payments are measured at fair value (excluding the effect of non market-based vesting conditions) at the date of grant. The fair value so determined is expensed on a straight-line basis over the vesting period, based on the Company's estimate of the number of shares that will eventually vest and adjusted for the effect of non market-based vesting conditions.

Fair value is measured using a Black-Scholes pricing model. The key assumptions used in the model have been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.

2.18 Taxation

Deferred tax represents the tax expected to be payable or recoverable on the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The Company has tax losses which can be used to offset future profits. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. No deferred tax asset has been recognised in the current period.

2.19 Research and development

The Company undertakes research and development activities with the aim of formulating and developing new bespoke CBD and hemp products. Research and development costs (principally staff costs and ingredients) are expensed as incurred.

2.20 Government grants

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attached to them and that the grants will be received.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support with no future related costs are recognised as other income in the profit and loss in the period in which they become receivable.

2.21 Critical accounting judgements and key sources of estimation uncertainty

In the process of applying the entity's accounting policies, management makes estimates and assumptions that have an effect on the amounts recognised in the financial statements. Although these estimates are based on management's best knowledge of current events and actions, actual results may ultimately differ from those estimates. The key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period, are those relating to the valuation of share based payments.

Operating the extraction and manufacturing facility in Poland

On 15 December 2022, Voyager contracted to acquire a company which owned and operated an extraction and manufacturing facility in Poland and, on 1 January 2023, Voyager assumed management of the operations. The proposed acquisition included the land that the facilities are built on and under Polish law non-EU purchases of real estate must obtain government approval. The acquisition agreement included a longstop date of 30 June 2023 and, when approval was not granted by that date, the acquisition lapsed and the facility was returned to its former owners.

IFRS 3 establishes the accounting and reporting requirements for the acquirer in a business combination. IFRS 10 provides that an investor controls an investee (the Polish company) if and only if the investor (Voyager) has all of the following elements:

• Power over the investee, i.e. the investor has existing rights that give it the ability to direct the relevant activities (the activities that significantly affect the investee's returns).
• Exposure, or rights, to variable returns from its involvement with the investee.
• The ability to use its power over the investee to affect the amount of the investor's returns.

The Directors consider that control of the company was never achieved on the basis that:

• The acquisition agreement never became unconditional;
• The board of directors of the investee business comprised exclusively representatives of the seller;
• Polish regulations require approval of several matters critical to the business operations (including annual leave, travel and certain exports) to be given only by a director of the business;
• Operation of the business' bank account was in conjunction with the seller; and
• The acquisition agreement contained certain restrictions on Voyager's operation of the facility.

Consequently, costs of operating the Polish company were reflected in an outstanding loan balance which the Board has prudently provided against this year.

Acquisition of Amphora Health Limited

On 30 January 2024, Voyager contracted to acquire the entire issued share capital of Amphora which itself owned 100% of Infused Amphora Limited. The acquisition was announced on 30 January 2024 and completed on 7 March 2024.

As a result of the SPA, on 7 March 2024, Voyager assumed control of Amphora. The acquisition comprised:

• Inventory owned by Amphora
• The listing of 23 edible CBD products on the FSA's novel foods list
• Various trademarks and logos owned by the Amphora brand
• A website and various social media accounts operated by Amphora

The consideration for the acquisition was £50,000 satisfied by the issue of 416,666 ordinary shares. In addition, a further 416,666 new ordinary shares at a price of 12 pence per share may be issued in the event, inter alia, that sales of Amphora or Infused Amphora branded products exceed £100,000 over the 24 month period from completion.

The acquisition specifically did not include any premises, employees, existing customers or active operations. Amphora was essentially in a dormant state and had been for some time which is the primary reason why Voyager was able to secure the company at what the Board considered to be an attractive price.

IFRS 3 establishes the accounting and reporting requirements for an acquirer but the treatment differs according to whether or not the acquisition meets the definition of a business. Taking account of these provisions and the facts of the acquisition, Voyager has treat the acquisition as an asset acquisition and not a business on the basis that:

• Amphora had no employees or premises.
• Amphora had no recent or ongoing operations.
• The acquisition included no working capital, cash, debt, creditors or debtors

2.22 New and amended statements adopted by the Group

At the date of approval of these financial statements, certain new standards, amendments to and interpretations of existing standards have been published but are not yet effective. None of these pronouncements have been adopted early by the Group, and they have not been disclosed as they are not expected to have a material impact on the Group's financial statements. Management anticipates that all pronouncements will be adopted for the first period beginning on or after their effective date.

2.23 Segmental reporting

The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as Nick Tulloch.

REVENUE

Revenue arising from the sale of goods by type is analysed as:

2024 2023 £'000 £'000 Shop revenue 142 186 Trade sales 125 57 Website and other sales 37 41 Total revenue 304 284

SEGMENT REPORTING

Operating segments are not reported on as there are no determined segments. There is deemed to be only one segment being the development and retail of the products for the health and wellness market and as such the information presented to the Chief Operating Decision Maker ("CODM") is the same as that set out in the primary statements. All revenue has been generated in the UK and is recognised at a point in time.

There are no unfulfilled conditions relating to the grant schemes at 31 March 2024.

The average number of staff during the period, including Directors, was 25. The aggregate payroll costs of these persons were as follows:

*Including manufacturing salaries that have been included in cost of sales on the statement of comprehensive income.

Directors' emoluments

There were no directors who received or exercised share options during the year.

The directors' aggregate emoluments in respect of qualifying services were:

* Eric Boyle was appointed as Non-executive Chairman of the Company pursuant to a letter of appointment dated 28 June 2021. With effect from Admission to AQSE on 1 July 2021, Mr Boyle's director's fee is £45,000 pa.

** Nick Tulloch was appointed as Chief Executive Officer of the Company pursuant to a service agreement dated 28 June 2021. With effect from Admission to AQSE on 1 July 2021, the basic salary payable to Mr Tulloch is £90,000 per annum and in addition a discretionary bonus in relation to each financial year which may be payable in cash and/or shares. The Company is also required to make a contribution equal to 10 per cent of Mr Tulloch's annual salary into his personal pension and provide private medical insurance for him and his family.

*** Jill Overland was appointed on 8 June 2021, with a salary of £30,000 per annum.

Key management

The Directors consider that key management personnel are the Directors of Voyager Life plc.

The UK Government enacted changes to the UK tax rate in 2020, resulting in the rate remaining at 19%. In the 2021 Budget, the UK Chancellor announced that legislation would be proposed to increase the main rate of corporation tax to 25% from 1 April 2023.

Tax has been calculated based on the rate of 25% which was effective for the period. The taxation charge in future periods will be affected by any changes to the corporation tax rates in force in the countries in which the Company operates. At 31 March 2024, the Group had unutilised tax losses of 2,379,000. The deferred tax asset not provided for in the accounts based on the estimated tax losses and the treatment of temporary timing differences, is approximately £595,000.

LOSS PER SHARE

The calculation of the loss per share is based on the loss for the financial period after taxation of £1.077 million and on the weighted average of ordinary shares in issue during the period.

The options outstanding at 31 March 2024 are considered to be non-dilutive in that their conversion into ordinary shares would not increase the net loss per share. Consequently, there is no diluted loss per share to report for the period.

INTANGIBLE ASSETS

Group

Identifiable assets acquired

£'000

Cost

The intangible assets arose from the acquisition of the trade and assets of Cannafull Limited and Ascend Skincare in December 2021 and Amphora Health Limited in March 2024 and primarily relate to the value of the novel food licenses. These are being amortised over a period of 3 years.

TANGIBLE ASSETS

RIGHT-OF-USE ASSETS AND LEASE LIABILITIES

The Company leases a number of properties for its retail operations and has accounted for these arrangements under IFRS 16 - Leases, which sets out the principles for recognition, measurement, presentation and disclosure of leases.

The interest rates implicit in the leases of between 3% per annum and 4% per annum have been applied. The leases are repayable in monthly instalments. Each of the Company's leases for its three retail premises is for an initial 10-year term and thereafter extendable by agreement. The leases for its Dundee and St Andrews premises contain break clauses at 3 years and 5 years respectively. The Company makes assumptions in respect of rent review dates within its internal planning and analysis.

The carrying amounts of the right of use assets recognised and the movements during the period are shown below:

Group ROU Asset £'000 Cost At 31 March 2023 715 Additions 37 At 31 March 2024 752 Amortisation At 31 March 2023 (131) Additions (87) At 31 March 2024 (218) Net book value At 31 March 2023 584 At 31 March 2024 534 Company ROU Asset £'000 Cost At 31 March 2023 715 Additions - At 31 March 2024 715 Amortisation At 31 March 2023 (131) Additions (78) At 31 March 2024 (209) Net book value At 31 March 2023 584 At 31 March 2024 506

Group

£'000

Subsidiary Companies:

As at 31 March 2024, the Company had three subsidiaries, VoyagerCann Limited, Amphora Health Limited and Infused Amphora Limited, all of which are owned 100%. VoyagerCann Limited was incorporated in Scotland with its registered office at Arran House, Arran Road, Perth, Perthshire PH1 3DZ. Amphora Health Limited and Infused Amphora Limited are incorporated in England with its registered offices at Riverbank House, 1 Putney Bridge Approach, London SW6 3JD. The acquisition of Amphora Health Limited has been treated as an asset acquisition and not as a business acquisition under IFRS3.

Acquisition of Amphora Health Ltd:

On 7 March 2024 Voyager Life plc acquired 100% of the equity of Amphora Health Ltd and Infused Amphora Ltd. At acquisition, under IFRS3, a business must have three elements: inputs, processes and outputs to constitute a business combination.

At acquisition, Amphora Health Ltd and Infused Amphora Ltd were dormant companies with little underlying assets. Additionally, Amphora Health Ltd and Infused Amphora Ltd did not have processes including a workforce to produce outputs. Therefore the directors conclusion was that the transaction was an asset acquisition and not a business combination.

The details of the Voyager Life plc's acquisition of Amphora Health Ltd and Infused Amphora Ltd are as follows;

Net assets group acquired £,000

Novel Food licenses 43

Inventory 17

Other current liabilities (10)

Total 50

Total purchase price £,000

Amount settled in shares 50

Total 50

The provision held at 31 March 2024 for slow moving stock is £nil. There are no material differences between the balance sheet value of inventory and their replacement cost.

All amounts in trade receivables are due within 3 months. The non-collection risk on trade receivables is reflected in the level of allowance for non-recovery of £1,000.

Other receivables relate to the escrow account that was repaid to the Company on 10 July 2023 and rent deposits.

The Directors consider that the carrying amount of trade and other receivables approximates to their fair value. Fair values have been calculated by discounting cash flows at prevailing interest rates. See also Note 27.

Cash at bank comprises of balances held in current bank accounts. The carrying amount of these assets approximates to their fair value.

Trade payables and accruals principally comprise amounts outstanding for trade purchases and continuing costs. The Directors consider that the carrying amount of trade and other payables approximates to their fair value. See also Note 26.

The Company has only one class of share. All ordinary shares have equal voting rights and rank pari passu for the distribution of dividends and repayment of capital. The following changes to the issued share capital of the Company during the year:

The only change to the issued share capital of the Company during the year was that, on 7 March 2024, the Company issued 416,644 fully paid-up Ordinary Shares for the investment of the share capital in Amphora Health Ltd.

At 31 March 2024 there were warrants and options outstanding over 6,383,774 unissued ordinary shares. Details of the warrants and options outstanding at the year end are as follows:

The Directors held the following options at the end of the period. As explained further in note 23, these options only vest if the Company's share price exceeds a hurdle of 20 pence.

The market price of the shares at the year-end was 9.35 pence per share.

During the period, the minimum and maximum prices were 9.35 pence and 14.25 pence per share respectively.

SHARE PREMIUM ACCOUNT

2024

£'000

The share options are Enterprise Management Incentive (EMI) options and therefore there is no employer's National Insurance Contributions on either their grant or exercise.

The details of the exercise price and exercise period of warrants and options are given in Note 21 above.

Details of the options and warrants outstanding at the period end are as follows:

There were no options or warrants exercised during the period.

The options and warrants outstanding at the period end have a weighted average remaining contractual life of 2.9 years. The exercise price of the options and warrants outstanding at the period end range from 20 pence to 58 pence per share. Full details of the exercise price and potential exercise dates are given in Note 21 above.

There were no warrants and or options granted during the year.

The Group recognised total charges of £50,830 related to equity-settled share-based payment transactions during the period, the amount of which is included in administrative expenses and the share premium account.

CAPITAL COMMITMENTS

There were no capital commitments at 31 March 2024.

CONTINGENT LIABILITIES

There were no contingent liabilities at 31 March 2024.

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

The Company's financial instruments comprise primarily cash and various items such as trade debtors and trade creditors which arise directly from its operations. The main purpose of these financial instruments is to provide working capital for the Company's operations. The Group did not utilise complex financial instruments or hedging mechanisms. To date, these amounts have, individually, been not material to the Company's trading performance or working capital.

Financial assets by category

The categories of financial assets (as defined by IFRS 9: Financial Instruments) included in the balance sheet and the heading in which they are included are as follows:

Financial liabilities by category

The categories of financial liabilities (as defined by IFRS 9) included in the balance sheet and the heading in which they are included are as follows:

All amounts are short term and payable in 0 to 9 months.

Credit risk

The maximum exposure to credit risk at the reporting date by class of financial asset was:

Trade receivables are due within 3 months. A provision for expected losses of £491 has been established.

Capital management

The Company considers its capital to be equal to the sum of its total equity. The Company monitors its capital using a number of metrics including cash flow projections, working capital ratios, the cost to achieve development milestones and potential revenue from activities. The Company's objective when managing its capital is to ensure it obtains sufficient funding for continuing its planned programme of growth. The Company funds its capital requirements through the issue of new shares to investors.

Interest rate risk

The maximum exposure to interest rate risk at the reporting date by class of financial asset was:

The nature of the Company's activities and the basis of funding are such that the Company has significant liquid resources. The Company uses these resources to meet the cost of future development activities. Consequently, it seeks to minimise risk in the holding of its bank deposits. The Company is not financially dependent on the small rate of interest income earned on these resources and therefore the risk of interest rate fluctuations is not significant to the business and the Directors have not performed a detailed sensitivity analysis. Nonetheless, the Directors take steps when possible and cost effective to secure rates of interest which generate a return for the Company by depositing sums which are not required to meet the immediate needs of the Company in interest-bearing deposits. Other balances are held in an interest-bearing, 95-day notice account. All deposits are placed with UK banks to restrict both credit risk and liquidity risk. The deposits are placed for the short term, of up to 95 days, to provide flexibility and access to the funds and to avoid locking into potentially unattractive interest rates.

Credit and liquidity risk

Credit risk is managed on a Group basis. Funds are deposited with financial institutions with a credit rating equivalent to, or above, the main UK clearing banks. The Group's liquid resources are invested having regard to the timing of payments to be made in the ordinary course of the Company's activities. All financial liabilities are payable in the short term (normally between 0 and 3 months) and the Group maintains adequate bank balances to meet those liabilities as they fall due.

Currency risk

The majority of income and costs are incurred in sterling and foreign currency risk is not considered to be significant. During the period, the Group had access to both Euro and Polish Zloty bank accounts pursuant to its Polish operations but access to these accounts ceased on 30 June 2023 when these operations ceased.

RELATED PARTY TRANSACTIONS

There were no related party transactions in the year to 31 March 2024 aside from the transactions with directors in respect of remuneration, details of which are set out on pages 39 to 43 of the annual report.

EVENTS AFTER THE REPORTING PERIOD

On 27 June 2024, the Company announced that it had entered into an option agreement to acquire the entire issued share capital of M3 Helium Corp., a producer of helium based in Kansas, USA. The option gives the Company the right to acquire M3 Helium through the issue of 57,611,552 new ordinary shares to M3 Helium's shareholders, representing 57 per cent. of the issued share capital of the Company as enlarged by the New Ordinary Shares following the option and the fundraise (explained below).

The exercise of the Option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of the Admission Document in due course.

Also on 27 June 2024, the Company announced that it had raised £864,468 through the issue of 28,815,606 New Ordinary Shares at an issue price of 3 pence per new ordinary share. For every two new ordinary shares issued pursuant to the fundraise, investors will receive one warrant allowing the holder to subscribe for an additional new ordinary share in the Company at an exercise price of 6 pence per ordinary share, exercisable within two years.

In connection with the fundraise, the Company also issued 900,000 Broker Warrants, exercisable at 3 pence per new ordinary share at any time until the second year anniversary of issue.

The proceeds of the Fundraise have been utilised to fund the development of M3 Helium's operations through a loan facility to M3 Helium of up to US$500,000.

The loan facility has been prepared on the basis of an arm's length commercial agreement between Voyager and M3 Helium for a term of up to one year. The loan facility and bears an interest rate of 6 per cent. per annum starting from the date on which the funds are received and ending upon the term date. The loan facility contains restrictions on M3 Helium taking on external finance and is structured to ensure it ranks in priority to M3 Helium's other obligations. Drawdowns under the loan facility must be for a specified purpose, namely the ongoing development of M3 Helium's business. As at 27 September 2024, US$487,362 had been drawn down under the loan facility.

CONTROL

In the opinion of the Directors there is no single ultimate controlling party.

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF VOYAGER LIFE PLC

The independent audit report draws attention to note 2.3 in the financial statements, which indicates that conditions exist that may cast significant doubt on the Group's and Company's ability to continue as a going concern. The company will therefore be reliant on one of the following to ensure it will continue as a going concern (i) conducting a fundraise and (ii) further cost reductions. As stated in note 2.3, these events or conditions, along with the other matters as set forth in note 2.3, indicate that a material uncertainty exists that may cast significant doubt on the group's and company's ability to continue as a going concern. The auditor's opinion is not modified in respect of this matter. The Independent Auditor's Report is set out in full below.

Opinion

We have audited the financial statements of Voyager Life Plc (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Statements of Financial Position, the Consolidated and Company Statements of Changes in Equity, the Consolidated and Company Cashflow Statements and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK-adopted international accounting standards and as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006.

In our opinion:

Basis for opinion

Material uncertainty related to going concern

We draw attention to note 2.3 in the financial statements, which indicates that conditions exist that may cast significant doubt on the Group's and Company's ability to continue as a going concern. The company will therefore be reliant on one of the following to ensure it will continue as a going concern:-

• conducting a fundraise and
• further cost reductions.

As stated in note 2.3, these events or conditions, along with the other matters as set forth in note 2.3, indicate that a material uncertainty exists that may cast significant doubt on the group's and company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors' assessment of the company's ability to continue to adopt the going concern basis of accounting included obtaining and reviewing the management's going concern assessment and associated cashflow forecasts for a minimum of 12 months from the date of approval of the financial statements. We have reviewed key inputs to the forecast financial information, and challenged the applicable assumptions and key estimates and confirmed that the calculations applied in the forecasts were in accordance with the assumptions and were mathematically accurate. In addition, we have also reviewed the current cash position to ensure it is in accordance with management expectation.

Our application of materiality

The scope of our audit was influenced by our application of materiality. We determined overall materiality for the consolidated financial statements as a whole to be £61,000 (2023: £50,000).

Overall materiality has been set at 6% (2023: 5%) of loss before tax. Loss before tax is considered to be the most important metric for users of the financial statements, and is a key performance indicator for Voyager Life Plc as their primary business function is to sell CBD goods to both businesses and customers, and therefore their ability to generate revenue and maintain strong cost controls are essential for business growth.

The only significant component of the group is the parent company which was audited to an overall materiality of £57,950 (2023: £49,000) based on Loss before tax. Performance materiality was set at 70% (2023: 70%) of overall materiality for both the group and parent company. The performance materiality is based on our assessment of the relevant risk factors such as management's attitude towards proposed adjustments and the level of estimation inherent within the group. We use performance materiality to assess the extent of testing needed to reduce the risk that the aggregated uncorrected and undetected misstatements exceeds materiality for the financial statements as a whole to an acceptably low level. We agreed to report to those charged with governance all corrected and uncorrected misstatements we identified through our audit with a value in excess of £3,050 (2023: £2,500) for the group and £2,000 (2023: 2,450) for the parent company. We also agreed to report any other audit misstatements below that threshold that we believe warranted reporting on qualitative grounds as well as disclosure matters that we identified when assessing the overall presentation of the financial statements.

We applied the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatement. Materiality is reassessed throughout the audit. The materiality threshold for both the group and the parent company has not changed since the audit planning stage.

Our approach to the audit

In designing our audit, we determined materiality, as above, and assessed the risk of material misstatement in the financial statements. In particular, we looked at areas requiring the directors to make subjective judgements, for example in respect of significant accounting estimates including the valuation of share-based payments including the modification of share options, the valuation of inventory and the estimates of useful lives and residual values of tangible assets. We have also considered the accounting treatment for the acquisition of Amphora Health Ltd and Infused Amphora Ltd. We also addressed the risk of management override of internal controls, including evaluating whether there was evidence of bias by the directors that represents a risk of material misstatement due to fraud.

A full scope audit was performed on the complete financial information of the group's operating components located in Scotland, with the group's key accounting function for all being based in the same location.

We identified what we considered to be key audit matters in the next section and planned our audit approach accordingly.

Key audit matters

Other information

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

• certain disclosures of directors' remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.

Responsibilities of directors

Auditor's responsibilities for the audit of the financial statements

• We obtained an understanding of the group and parent company and the sector in which they operate to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management, industry research, application of cumulative audit knowledge and experience of the CBD sector.
• We determined the principal laws and regulations relevant to the parent company in this regard to be those arising from:

o The Novel Foods (England) Regulations 2018 (CBD edibles are regulated as a novel food through the Food Standards Agency)

o Food Safety Act 1990

o Health and Safety Act 1974

o QCA Corporate Governance

o AQSE Growth Market regulations - Access Segment

o Misuse of Drugs Act 1971 and Misuse of Drugs Regulations 2001

o Local tax laws and regulations

o Companies Act 2006

o Making enquiries of management regarding potential instances of non-compliance;

o A review of Board meeting minutes; and

o A review of legal ledger accounts

• We also identified the risks of material misstatement of the financial statements due to fraud. Aside from the non-rebuttable presumption of a risk of fraud arising from management override of controls and the rebuttable presumption of risk of fraud on revenue recognition, we did not identify any other significant fraud risks.
• To address the risk of fraud arising from revenue recognition, we performed audit procedures which included, but were not limited to: tests of control and substantive transactional testing of income from sale of products through trade fares, shops, the company's website and third-party websites recognised in the financial statements on a sample basis, including deferred and accrued income balances recognised at the period-end.

Use of our report

Timothy Harris (Senior Statutory Auditor) 15 Westferry Circus

For and on behalf of PKF Littlejohn LLP Canary Wharf

Statutory Auditor London E14 4HD