COILED THERAPEUTICS PLC - CONDENSED INTERIM FINANCIAL STATEMENTS

NOTES TO THE INTERIM FINANCIAL INFORMATION

1                       General Information

The Company was incorporated on 17 August 2020 as a public company in England and Wales with company number 12819145 under the Companies Act.

The address of its registered office is 167-169 Great Portland Street, 5th Floor, London, England, W1W 5PF.

The principal activity of the Group is the development of precision oncology therapies. Its lead programme, AO-252, is a small molecule inhibitor of TACC3 currently in a Phase I clinical trial in the United States.

The Company listed on the London Stock Exchange ("LSE") on 22 March 2021. On 27 March 2026 the LSE listing was cancelled, the Company's enlarged issued share capital was admitted to trading on the AIM Market of the London Stock Exchange, and the Company changed its name to Coiled Therapeutics plc.

The condensed consolidated interim financial statements of the Group have been prepared in accordance with UK adopted International Accounting Standards as issued by the UK Accounting Standards Board (ASB). They have been prepared under the assumption that the Group operates on a going concern basis.

2                       New Standards and Interpretations

New and revised accounting standards adopted for the period ended 30 June 2026 did not have any material impact on the Group's accounting policies. There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the Group has decided not to adopt early.

The Group is currently assessing the impact of these new accounting standards and amendments. The Group does not expect any other standards issued by the IASB, but not yet effective, to have a material impact on the Group.

3                       Summary of Significant Accounting Policies

Basis of Preparation

These condensed consolidated interim financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2025 were approved by the Board of Directors on 5 May 2026 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified and did not contain any statement under section 498 of the Companies Act 2006.

These condensed consolidated interim financial statements have been prepared in accordance with the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority and with IAS 34 "Interim Financial Statements." The condensed consolidated interim financial statements do not include all disclosures that would otherwise be required in a complete set of financial statements but have been prepared in accordance with the existing accounting policies of the Group. The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2025, which have been prepared in accordance with UK adopted International Accounting Standards and the Companies Act 2006.

The condensed consolidated interim financial statements for the period ended 30 June 2026 are unaudited.

The condensed consolidated interim financial statements are presented in £ unless otherwise stated, which is the Company's functional and presentational currency.

Going concern

The preparation of the financial statements requires an assessment on the validity of the going concern assumption.

The Directors, having made due and careful enquiry, are of the opinion that the Company and the Group have adequate working capital to execute its operations over the next 12 months. As a result, the Directors have adopted the going concern basis of accounting in the preparation of the interim financial statements.

Accounting policies

The same accounting policies, presentation and methods of computation have been followed in these condensed consolidated interim financial statements as were applied in the preparation of the Company's and the Group's financial statements for the period ended 31 December 2025.

Segment reporting 

The Group considers it has one operating segment and therefore the results are as presented in the primary statements.

Forward-looking statements 

Certain statements in this condensed set of consolidated interim financial statements are forward looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations will prove to be correct. As these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

4                       Critical accounting estimates and judgements

In preparing the condensed consolidated interim financial statements, the Directors have to make judgements on how to apply the Company's accounting policies and make estimates about the future. Estimates and judgements are continuously evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may deviate from these estimates and assumptions.

Actual results may differ from these estimates. In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements for the year ended 31 December 2025.

5                       Financial risk management  

The Group's activities expose it to a variety of financial risks, including market risk (which includes currency risk and interest rate risk), credit risk and liquidity risk. The condensed consolidated interim financial statements do not include all financial risk management information and disclosures required in the annual financial statements; they should be read in conjunction with the Group's annual financial statements as at 31 December 2025. There have been no changes in any risk management policies since the year end.

6                       Earnings per Ordinary Share

On 26 March 2026 the Company undertook a share reorganisation under which every 10 existing ordinary shares of 1 penny each were consolidated into one ordinary share of 10 pence each, and each resulting share was then subdivided into one New Ordinary Share of 1 penny and one Deferred Share of 9 pence.

The comparative weighted average number of ordinary shares has been restated by dividing the number previously reported by ten, giving 14,762,098 for the six months ended 30 June 2025 and 15,356,408 for the year ended 31 December 2025. Basic and diluted loss per share has accordingly been restated from (0.32) to (3.32) for the six months ended 30 June 2025, and from (2.19) to (21.89) for the year ended 31 December 2025.

7    Intangible assets

On 27 March 2026, on admission to AIM, the Group acquired an exclusive worldwide licence to AO-252 from Coiled Therapeutics, Inc. under an exclusive worldwide licence agreement.

The movement in the period arises from the Group's acquisition of the exclusive worldwide licence to AO-252 from Coiled Therapeutics, Inc., completed on admission to AIM on 27 March 2026. The initial consideration under the licence agreement was £31,875,000, satisfied in full by the issue of 318,750,000 consideration shares at 10 pence per share.

Deferred consideration of 127,500,000 performance shares, contingent on the Company achieving market capitalisations of £60 million, £90 million and £120 million over 30 consecutive days, has been recognised at a fair value of £8,955,101 determined using a probability based calculation, with a corresponding credit to the share-based payment reserve.

The acquisition was settled entirely in equity and no cash consideration was paid. Accordingly, none of the additions in the period is reflected in the consolidated statement of cash flows.

AO-252 remains in clinical development and has not received regulatory approval. Amortisation will commence when the asset is available for use, and no amortisation has been charged in the period. The Directors have assessed the carrying amount for indicators of impairment at 30 June 2026 and concluded that no impairment is required.

8    Borrowings

During the year ended 31 December 2025 the convertible loan notes were converted in accordance with their terms, with the conversion calculation fixed and the number of ordinary shares to be issued determined on the dates of conversion. The Company had insufficient headroom in its authorised share capital as at 31 December 2025 to issue the new ordinary shares and accordingly the new ordinary shares in relation to the conversion of the convertible notes were issued on admission to AIM on 27 March 2026. No convertible loan notes were in issue during the six months ended 30 June 2026.

On 13 October 2025 the Company entered into a loan agreement with A2A Pharmaceuticals, Inc. for a facility of £100,000. The loan bears interest at 5 per cent per annum accruing daily, with 15 per cent per annum applying to overdue amounts, and is repayable on the earlier of completion of the licence agreement and 12 months from the date of the agreement. The Company has agreed to repay the balance of the loan in September 2026. Interest of £1,822 has been charged to the income statement in the period in respect of the loan.

9    Share capital

¹On 26 March 2026 the Company undertook a share reorganisation under which every 10 existing ordinary shares of 1 penny each were consolidated into one ordinary share of 10 pence each, and each resulting share was then subdivided into one New Ordinary Share of 1 penny and one Deferred Share of 9 pence. The Deferred Shares carry no voting rights, no entitlement to dividends and no right to participate in a return of capital other than nominally, and are not admitted to trading on any exchange. Aggregate called-up share capital was unchanged by the reorganisation.

²On admission to AIM on 27 March 2026, the Company issued 318,750,000 consideration shares at 10 pence in satisfaction of the initial consideration under the AO-252 licence agreement, together with 53,000,000 placing shares and 32,000,000 subscription shares at 10 pence for cash, raising gross proceeds of £8,500,000. The Company also issued 1,875,000 advance subscription shares at 8 pence.

³On 27 March 2026 the Company issued 183,797,416 B Shares of 1p each by way of bonus issue to holders of ordinary shares and convertible loan notes as at 28 November 2025, on the basis of one B Share for each ordinary share then held or subject to subscription rights. The B Shares were credited as fully paid by the capitalisation of £1,837,974 standing to the credit of the share premium account and no consideration was received by the Company, so that the issue had no effect on total shareholders' equity. The B Shares carry no voting rights, no entitlement to dividends, are not admitted to trading on any exchange and rank behind the New Ordinary Shares on a return of capital. Conditional on completion of the sale of Lyramid Limited on or before 31 December 2026, the B Shares will be cancelled and the Company's liability to repay the amount paid up on them satisfied by the transfer to holders of the Company's entire holding in Midkine Investments Limited ("Midkine"), on the basis of one Midkine share for each B Share; if completion does not occur by that date the entitlement lapses. The B Shares have been classified as equity on the basis that the Company has no present obligation to deliver cash or another financial asset, any such obligation arising only on completion of the sale and confirmation of the reduction of capital.

⁴On admission to AIM on 27 March 2026, 1,277,762 ordinary shares of £0.01 each were issued at 10 pence per share in settlement of £127,777 of liabilities accrued in prior periods. No gain or loss arose on settlement, the fair value of the shares issued being equal to the carrying amount of the liabilities extinguished.

⁵On admission to AIM on 27 March 2026, 2,581,147 ordinary shares of £0.01 each were issued at 12 pence per share on conversion of the convertible loan notes. The carrying amount of the liability was transferred to share capital and share premium on conversion and no gain or loss was recognised.

⁶On 3 June 2026, the Company issued 934,783 new ordinary shares of one pence each in settlement of amounts owing to a consultant (434,783 New Ordinary Shares) and a vendor (500,000 New Ordinary Shares). The New Ordinary Shares rank pari passu in all respects with the Company's existing ordinary shares of one pence each.

10    Share-based payments

Share-based payment reserve

¹The fair value of £8,955,101 in respect of the 127,500,000 deferred consideration shares was recognised as part of the cost of the AO-252 licence, with a corresponding credit to the share-based payment reserve, and accordingly does not form part of the charge recognised in the income statement.

²Warrants over 18,000,000 ordinary shares, granted in prior periods, lapsed unexercised on 22 March 2026. In accordance with IFRS 2 no reversal of the cumulative charge previously recognised has been made; the related balance of £147,377 has been transferred from the share-based payment reserve to retained earnings.

The fair value of £131,187 in respect of warrants granted to the Company's brokers on admission has been treated as a cost of issuing equity and debited to share premium rather than charged to the income statement.

11                     Related Party Transactions

On 27 February 2026, conditional on admission to AIM, a warrant over 4,000,000 ordinary shares was granted to Cresthaven Investment Pty Ltd, an entity in which Mr West has a beneficial interest, exercisable at 10 pence per ordinary share until 27 March 2031. The fair value of £263,170 was recognised in full on admission, the warrant having vested on that date.

On admission to AIM on 27 March 2026, share options were granted to the Directors under the Company's unapproved Share Option Scheme, exercisable at 10 pence per ordinary share with a term of seven years and vesting as to 50 per cent six months after admission and 50 per cent twelve months after admission: Jean Duvall 4,000,000 options, Pamela Frank 4,000,000 options, Dr Sotirios Stergiopoulos 5,000,000 options, Sridhar Vempati 7,000,000 options and Stephen West 5,000,000 options. The amounts charged to the income statement in respect of these options for the six months ended 30 June 2026 were £122,651, £122,651, £153,314, £214,640 and £153,314 respectively, being £766,570 in aggregate.

On admission to AIM on 27 March 2026, 1,277,762 ordinary shares were issued at 10 pence per share in settlement of liabilities owed to Directors, being £127,777 in aggregate.

On 16 June 2026, Dr Andrew Dean, a Non-Executive Director, was granted 4,000,000 share options exercisable at 10 pence per ordinary share with a term of seven years, vesting as to 50 per cent six months and 50 per cent twelve months after the date of grant. The amount charged to the income statement in the period was £12,311.

On 23 June 2026, Craig Tooman, a Non-Executive Director, was granted 4,000,000 share options on the same terms. The amount charged to the income statement in the period was £6,886.

The fair value of £23,205 in respect of ASA Loyalty Warrants granted to Mr West was recognised in full in the period, the vesting condition having been satisfied at 30 June 2026.

During the six months ended 30 June 2026 the Company was invoiced £126,000 by ROQ Corporate Ltd in respect of corporate finance and administrative services. All amounts were charged on normal commercial terms and settled in cash; nil was outstanding at 30 June 2026. ROQ Corporate Ltd is a company in which Mr West, a Non-Executive Director of the Company, has a beneficial interest.

12                     Post Balance Sheet Events

Following the period end, the Company announced the development of a next-generation lipid-based softgel formulation of AO-252, designed to address absorption limitations observed with the original tablet formulation and deliver more consistent, dose-proportional absorption. The first patient was dosed with the new formulation in August 2026, with initial post-dose monitoring identifying no treatment-related adverse findings.

In September 2026, the Company completed enrolment across two initial dose-escalation cohorts evaluating the new formulation, comprising a 120mg twice-daily cohort and a 160mg once-daily cohort. All six patients are progressing through their protocol-specified assessment periods.

13                     Ultimate Controlling Party

As at 30 June 2026, there was no ultimate controlling party of the Company.

14                     Nature of the Consolidated Condensed Interim Financial Statements

The Company Financial Information presented above does not constitute statutory accounts for the period under review.

15                     Approval of the Condensed Interim Financial Statements

The Condensed Interim Financial Statements were approved by the Board of Directors on 25 September 2026.