NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION

General information

The Company was incorporated on 23 August 2021 in England and Wales with Registered Number 13578804 under the Companies Act 2006. The principal activity of the Company is the development of artificial intelligence (AI) technologies within the healthcare sector.

The address of its registered office is Floor 8 71 Queen Victoria Street, London, England, EC4V 4AY.

The Directors of the Company are responsible for the Financial Information in the interim report.

1.   Accounting Policies

IAS 8 requires that management shall use its judgement in developing and applying accounting policies that result in information which is relevant to the economic decision-making needs of users, that are reliable, free from bias, prudent, complete and represent faithfully the financial position, financial performance and cash flows of the entity.

2. Basis of preparation

The Interim Financial Information has been prepared in accordance with the UK adopted International Accounting Standards and the Companies Act 2006 applicable to companies reporting under IFRS. The Condensed Interim Financial Information has not been prepared in accordance with IAS 34 "Interim Financial Information."

The Interim Financial Information does not include all disclosures that would otherwise be required in a complete set of Financial Statements but has been prepared in accordance with the existing accounting policies of the Company.

The Interim Financial Information for the period ended 28 February 2026 is unaudited.

Medpal AI Plc's Interim Financial Information has been prepared using the measurement bases specified by IFRS for each type of asset, liability, income and expense.

The Interim Financial Information does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.

The Interim Financial Information is presented in £ unless otherwise stated, which is Medpal AI's presentational currency.

2.1        Going concern

The Directors have made an assessment of the Company's ability to continue as a going concern and are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company, therefore, continues to adopt the going concern basis in preparing its Interim Financial Information.

2.2     Critical accounting estimates and judgments

In preparing the Interim Financial Information, the directors must make judgments on how to apply the Company's accounting policies and make estimates about the future. Estimates and judgements are continuously evaluated based on experiences 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.

During the period it was determined that there were no key accounting estimates or judgements.

3.   Administrative expenses

4.   Earnings per share

The calculation of the basic and diluted earnings per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period.

There is no difference between the diluted loss per share and the basic loss per share presented as there are no dilutive financial instruments.

5.   Acquisition of Universal Pharmacy

On 1 October 2025, Medpal Limited announced the conditional acquisition of the pharmacy assets of Universal Pharmacy Ltd (in administration) , pursuant to a Business Purchase Agreement. The pharmacy operates in Swaffham, Norfolk.

The transaction has been accounted for as an asset purchase, as the assets acquired did not constitute a business for the purposes of IFRS 3. The total cost, including directly attributable transaction costs capitalised in accordance with IAS 38, has been allocated across the identifiable assets on the basis of their relative fair values at the acquisition date.

The initial exchange payment of £15,000 was funded by Medpal AI Plc via intercompany loan. The deferred consideration of £30,000 was settled in February 2026 on completion of the formal transfer of the NHS dispensing contractor registration.

Intangible asset - NHS and DSP licence

The primary asset acquired is the NHS community pharmacy contractor registration and distance selling pharmacy (DSP) licence. The Directors have assessed this intangible asset as having an indefinite useful life on the basis that the licence is not subject to a fixed contractual term, is renewable by the Group subject to ongoing regulatory compliance, and there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows for the Group.

Accordingly, the asset is not amortised. In accordance with IAS 36, it is subject to impairment testing at least annually and whenever there is an indication that it may be impaired. No impairment indicators were identified at 28 February 2026. The carrying amount at the period end was £55,645.

6.   Trade and other receivables

7.   Share capital

^{1-         700,000 shares at £0.01 were issued on the 19th January 2024 for total proceeds of £7,000}

^{2-         Issue of 56,900,000 shares at nominal value for total proceeds £5,690}

^{3-         Issue of 43,450,000 shares at £0.01 per share for total proceeds of £434,500}

^{4-         Issue of 192,500,000 shares to founder Jason Drummond for the purchase of the Medpal AI IP}

^{5-         Issue of 5,033,334 shares at £.03 per share for total proceeds of £151,000}

^{6-         Issue of 2,000,000 fee shares for £0.01 per share in lieu of fees}

^{7-         On 1 August 2025 , the Company consolidated its ordinary shares on a 2-for-1 basis. the issued share capital was reduced from 692,166,668 ordinary shares of £0.0001 each to 346,083,334 ordinary shares of £0.0002 each. The consolidation did not affect the aggregate nominal value of the issued share capital, which remained £69,216.67}

^{8-         Issue of 12,000,001 and 5,000,000 shares at £0.03 and £0.01 per share raising £410,000}

^{9-         Issue of 50,000,000 shares at £0.04p per share as part of the Company's IPO}

^{10-       Issue of 6,816,305 shares at £0.08 per share}

^{11-       Issue of  7,500,000 shares at £.066 per share} 

^{12-       Issue of  6,200,000 shares at £0.061 per share}

^{13-       Issue of 6,500,000 shares at £0.052 per share}

^{14-       Issue of 9,000,000 shares at £0.052 per share}

^{15-       Issue of 6,055,000 shares at £0.051 per share}

The share premium represents the difference between the nominal value of the shares issued and the actual amount subscribed less; the cost of issue of the shares, the value of the bonus share issue, or any bonus warrant issue.

Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have a par value of £0.0002 and the Company's  authorised capital is not limitedl.

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

All issued shares are fully paid.

8.   Options and warrants

Options

Warrants

The fair value of the services received in return for the options and warrants granted are measured by reference to the fair value of the instrument granted. The estimate of the fair value of the instrument granted is measured based on the Black-Scholes valuations model and Barrier valuations model. The weighted average time to expiry of the warrants and options is 5.51 years.

9.   Related party transactions

NHS Revenue

The Runcorn acquisition was classified as a related party transaction under AIM Rules as the acquisition rights were originally secured by Jason Drummond in his personal capacity. As part of the agreement all NHS prescription income arising at the Runcorn site is beneficially owned by Medpal Limited, and Mr Drummond holds any amounts received solely as bare trustee with an obligation to remit promptly. No commercial benefit accrues to Mr Drummond under this arrangement. During the period a total of £1.4m of revenue was attributable to this arrangement. Subsequent to the year end Medpal Limited acquired the assets from Jason Drummond. Refer to Note 12 for further information.

10.  Capital Commitments

There were no capital commitments at 28 February 2026 (28 February 2025: nil).

11.  Contingent Liabilities

There were no contingent liabilities at 28 February 2026 (29 February 2025: nil).

12.  Events subsequent to period end

Board changes

On 9 March 2026, the Company announced that at the AGM, on 30 March 2026, Karl Karlsson would step down as Chairman and accordingly, would not be proposed for re-election.

Equity fundraisings and issue of fee shares

On 20 March 2026, the Company announced that it had conditionally raised approximately £527,000 through the issue of 21,080,000 new ordinary shares at 2.5 pence per share.

On 25 March 2026, the Company announced that it had raised approximately £405,160 through a subscription and retail offer, issuing 16,206,396 new ordinary shares at 2.5p per share.

On 17 April 2026, the Company announced a further placing to raise gross proceeds of £3.0 million through the issue of 120,000,000 new ordinary shares at 2.5 pence per share.  As part of the raise warrants over 7,200,000 new ordinary shares were granted, exercisable at 2.5 pence for 36 months from admission.

On 20 April 2026, the Company issued 3,600,000 new ordinary shares in lieu of £90,000 of advisory fees. Following admission of these shares, the Company's issued ordinary share capital comprised 616,041,036 ordinary shares.

Remedi acquisition

On 29 April 2026, Medpal Limited completed the acquisition of the Runcorn pharmacy assets through its wholly owned subsidiary, in a transaction with a total consideration of £310,000. This is a non-adjusting post balance sheet event. On completion, prepaid transaction costs will be reclassified as an intangible asset, being the NHS and DSP licences, with an assessed indefinite useful life, consistent with the accounting policy applied to the Swaffham licence. The final payment to the administrators of £30,000 was payable on completion of the novation agreement between Jason Drummond and Medpal Limited.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018). The Directors of the Company are responsible for the contents of this announcement.

Enquiries:

About MedPal AI

MedPal AI is a UK-based digital health company building the MedPal Health OS - a vertically integrated, closed-loop platform spanning AI wellness, clinical services, and automated pharmacy fulfilment. Its core app aggregates data from over 100 wearable devices and health apps (including Apple Health, Fitbit, Garmin, and Whoop) into a unified health profile, offering personalised, non-clinical lifestyle guidance through its AI wellness coach and acting as the consumer front door to the Company's clinical and pharmacy services.

Through its wholly owned subsidiary MedPal Limited, the Company operates a 24/7 AI-powered automated pharmacy distribution centre, providing nationwide NHS and private prescription services. The facility leverages BD Rowa VMAX robotic dispensing technology integrated with AI triage to deliver rapid, cost-effective medication fulfilment with same-day and next-day delivery capabilities.

MedPal AI has a partnership agreement with Epassi UK Limited, which will, for a limited time, grant exclusive, zero-cost access to the MedPal AI app across Epassi's network of 11M+ employees at major firms. The Company's LEI is 984500EDP8B0A14CBA61.

Forward Looking Statements

This announcement contains forward-looking statements, which are based on the Company's current expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts. Forward-looking statements are often identified by words such as "believes", "expects", "intends", "may", "will", "should", "could", "plans", "targets", "aims" or similar expressions. Such statements are subject to risks, assumptions and uncertainties and actual results, performance or events may differ materially from those expressed or implied by them. The Company undertakes no obligation to update any forward-looking statements, except as required by applicable law, the AIM Rules for Companies, the UK Market Abuse Regulation or other applicable regulation.