# EDGAR Filing Document

**Accession Number:** 0002027360
**File Stem:** 0001493152-25-027153
**Filing Date:** 2025-12
**Character Count:** 62606
**Document Hash:** 53bf2f8362c5fcd0977fa7ff0cdd1aa3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-25-027153.hdr.sgml**: 20251211

**ACCESSION NUMBER**: 0001493152-25-027153

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 76

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20251211

**DATE AS OF CHANGE**: 20251211

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** RedCloud Holdings plc
- **CENTRAL INDEX KEY:** 0002027360
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-RETAIL STORES, NEC [5990]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 000000000
- **STATE OF INCORPORATION:** X0
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42557
- **FILM NUMBER:** 251563535

**BUSINESS ADDRESS:**
- **STREET 1:** 50 LIVERPOOL STREET
- **CITY:** LONDON
- **STATE:** X0
- **ZIP:** EC2M 7PY
- **BUSINESS PHONE:** 4402077543735

**MAIL ADDRESS:**
- **STREET 1:** 50 LIVERPOOL STREET
- **CITY:** LONDON
- **STATE:** X0
- **ZIP:** EC2M 7PY

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER**

**PURSUANT TO RULE 13a-16 OR 15d-16**

**UNDER THE SECURITIES EXCHANGE ACT OF 1934**

**For the month of November 2025**

**Commission File Number: 001-42557**

**RedCloud Holdings plc**

**(Registrant's Name)**

**50 Liverpool Street,** 

**London, EC2M 7PY, United Kingdom** 

**(Address of Principal Executive Offices)**

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

RedCloud Holdings plc, a public limited company organized under the laws of England and Wales ("RedCloud") is furnishing this Report on Form 6-K to provide its unaudited condensed consolidated financial statements as of June 30, 2025, and for the six months ended June 30, 2025 and 2024.

The unaudited condensed consolidated financial statements as of June 30, 2025, and for the six months ended June 30, 2025 and 2024, are attached to this Form 6-K as Exhibit 99.1.

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Unaudited condensed consolidated financial statements of RedCloud Holdings plc as of June 30, 2025 and for the six months ended June 30, 2025 and 2024.](ex99-1.htm) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| **RedCloud Holdings plc** | **RedCloud Holdings plc** |
| By: | */s/ Justin Floyd* |
| Name: | Justin Floyd |
| Title: | Chief Executive Officer |

---

Date: December 11, 2025

## Exhibit 99.1

?xml version='1.0' encoding='ASCII'?

**Exhibit 99.1**

---

| |
|:---|
| **REDCLOUD HOLDINGS PLC** |
| UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS |
| As of and for the Six Months Ended June 30, 2025, and 2024 |

---

**REDCLOUD HOLDINGS PLC**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| **UNAUDITED condensed consolidated financial Statements** |  |
| &nbsp;&nbsp;&nbsp;[Unaudited Condensed Interim Consolidated Balance Sheets](#RMa_001) | 3 |
| &nbsp;&nbsp;&nbsp;[Unaudited Condensed Interim Consolidated Statements of Comprehensive Loss](#RMa_002) | 4 |
| &nbsp;&nbsp;&nbsp;[Unaudited Condensed Interim Consolidated Statements of Stockholders' Deficit](#RMa_003) | 5 |
| &nbsp;&nbsp;&nbsp;[Unaudited Condensed Interim Consolidated Statements of Cash Flows](#RMa_004) | 6 |
| &nbsp;&nbsp;&nbsp;[Notes to the Unaudited Interim Condensed Consolidated Financial Statements](#RMa_005) | 7-24 |

---

**REDCLOUD HOLDINGS PLC**

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET

*UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*

---

| | | | |
|:---|:---|:---|:---|
| (In United States dollars, except shares and par value) | Notes | June 30, 2025 | December 31, 2024 |
| **ASSETS** |  |  |  |
| Current Assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents |  | $869081 | $800735 |
| &nbsp;&nbsp;&nbsp;Restricted Cash |  | $32307 | 31936 |
| &nbsp;&nbsp;&nbsp;Accounts receivables and other receivables, net | 3 | 2489535 | 5528826 |
| &nbsp;&nbsp;&nbsp;Income taxes receivable |  | 1373310 | 1657829 |
| &nbsp;&nbsp;&nbsp;Other current assets | 4 | 990815 | 2778826 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Assets |  | 5755048 | 10798152 |
| Non Current Assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 5 | 574334 | 593357 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 6 | 7074524 | 6168534 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Non Current Assets |  | 7648858 | 6761891 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Assets** |  | $13403906 | $17560043 |
| **LIABILITIES AND STOCKHOLDERS' DEFICIT** |  |  |  |
| Current Liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable |  | $4227424 | 3373487 |
| &nbsp;&nbsp;&nbsp;Vouchers payable |  | 2725970 | 6477256 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 7 | 4788234 | 3128515 |
| &nbsp;&nbsp;&nbsp;Value-added tax payable |  | 241509 | 32387 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 8 | 95592 | 143073 |
| &nbsp;&nbsp;&nbsp;Shareholder loans payable |  | 9013611 | 50057013 |
| &nbsp;&nbsp;&nbsp;Short-term borrowings |  | 315940 | 558206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Liabilities |  | 21408280 | 63769937 |
| &nbsp;&nbsp;&nbsp;Convertible Shareholder loans, at fair value | 9 | - | 22560124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Non current Liabilities |  | - | 22560124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Liabilities** |  | 21408280 | 86330061 |
| **Commitments and Contingencies (Note 15)** |  |  |  |
| **Stockholders' Deficit:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Common stock | 11 | 115636 | 65280 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital |  | 153009329 | 74374429 |
| &nbsp;&nbsp;&nbsp;Merger Reserve |  | 12609377 |  |
| &nbsp;&nbsp;&nbsp;Preference Share - Share Cap |  | 63905 |  |
| &nbsp;&nbsp;&nbsp;Accumulated deficit |  | (174965279) | (148420321) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income |  | 1162658 | 5210594 |
| &nbsp;&nbsp;&nbsp;**Total Stockholders' Deficit** |  | (8004374) | (68770018) |
| &nbsp;&nbsp;&nbsp;**Total Liabilities and Stockholders' Deficit** |  | $13403906 | $17560043 |

---

The unaudited accompanying notes to the condensed consolidated financial statements are an integral part of these statements.

**REDCLOUD HOLDINGS PLC**

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS

*UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*

 

---

| | | | |
|:---|:---|:---|:---|
|  | | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | <br>Notes | 2025 | 2024 |
| Revenue |  | $17973748 | $16075466 |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative |  | 1350742 | 462121 |
| &nbsp;&nbsp;&nbsp;Salaries, benefits, contractor costs |  | 12820835 | 8894422 |
| &nbsp;&nbsp;&nbsp;Marketing and commissions |  | 18471073 | 19136253 |
| &nbsp;&nbsp;&nbsp;Travel |  | 546081 | 714804 |
| &nbsp;&nbsp;&nbsp;Professional fees |  | 1158597 | 1284994 |
| &nbsp;&nbsp;&nbsp;Product and technology development |  | 2277688 | 1345309 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization |  | 1345798 | 788106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses |  | 37970814 | 32626009 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss from operations |  | (19997067) | (16550543) |
| Other expense: |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest (income)/expense |  | (1176502) | (1309997) |
| &nbsp;&nbsp;&nbsp;Gain on Debt Extinguishment |  | 3838715 |  |
| &nbsp;&nbsp;&nbsp;Loss from change in fair-value of convertible shareholder loans |  | (232041) | (5356574) |
| &nbsp;&nbsp;&nbsp;Stock based Compensation |  | (7824176) | (39674) |
| &nbsp;&nbsp;&nbsp;Foreign currency loss |  | (1642827) | (853714) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss before income taxes |  | (27033898) | (24110502) |
| Income tax benefit | 12 | 488940 | 222099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss |  | $(26544958) | $(23888403) |
| Loss per Share |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss per Share, basic and diluted |  | $(0.74) | $(1.01) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted-average common shares outstanding, basic and diluted |  | 35745864 | 23566694 |

---

---

| | | |
|:---|:---|:---|
|  | **For the period ended** | **For the period ended** |
|  | June 30, 2025 | June 30, 2024 |
| <br>Net Loss | $(26544958) | $(23888403) |
| Foreign currency translation adjustment net of tax | (4047936) | 1800358 |
| Other comprehensive income, net of tax | $(4047936) | $1800358 |
| Comprehensive loss | $(30592894) | $(22088045) |

---

The unaudited accompanying notes to the condensed consolidated financial statements are an integral part of these statements.

**REDCLOUD HOLDINGS PLC**

UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT

*UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*

 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | | |
|  | **Shares** | **Amount** | **Additional**<br> **Paid-In**<br> **Capital** | **Merger**<br> **Reserve** | **Accumulated**<br>**Deficit** | **Accumulated**<br> **Other**<br> **Comprehensive**<br>**Income (Loss)** | **Total**<br> **Stockholders'**<br>**Deficit** |
| **Balances, January 1, 2024** | 43335475 | $56798 | $73108399 | $- | $(97704625) | $1970765 | $(22568663) |
| Common stock issued | 6664610 | 8451 | (8451) |  |  |  |  |
| Conversion of shareholder loan into common shares |  |  |  |  |  |  |  |
| Stock-based compensation |  |  | 39674 |  |  |  | 39674 |
| Extinguishment of debt |  |  |  |  |  |  |  |
| Net loss |  |  |  |  | (23888403) |  | (23888403) |
| Foreign currency Translation adjustment, net of tax | - | - | - | - | - | 1800358 | 1800358 |
| **Balances, June 30, 2024** | 50000085 | $65249 | $73139622 | $- | $(121593028) | $3771123 | $(44617035) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | | |
|  | **Shares** | **Amount** | **Additional**<br> **Paid-In**<br> **Capital** | **Merger**<br> **Reserve** | **Accumulated**<br>**Deficit** | **Accumulated**<br> **Other**<br> **Comprehensive**<br>**Income (Loss)** | **Total**<br> **Stockholders'**<br>**Deficit** |
| **Balances, January 1, 2025** | 25000044 | $65280 | $74374429 | $- | $(148420321) | $5210594 | $(68770018) |
| Reverse take-over |  |  | (12609377) | 12609377 |  |  |  |
| Common stock issued through IPO | 4444445 | 11580 | 20290650 |  |  |  | 20302230 |
| Pref erence shares | 1 | 63905 |  |  |  |  | 63905 |
| Conversion of shareholder loan into common shares | 14782149 | 38776 | 66977524 |  |  |  | 67016300 |
| Stock-based compensation |  |  | 9055564 |  |  |  | 9055564 |
| Extinguishment of Debt |  |  | 341850 |  |  |  | 341850 |
| IPO direct costs |  |  | (5421312) |  |  |  | (5421312) |
| Net loss |  |  |  |  | (26544958) |  | (26544958) |
| Foreign currency Translation adjustment, net of tax | - | - | - | - | (0) | (4047936) | (4047936) |
| **Balances, June 30, 2025** | 44226639 | $179541 | $153009329 | $12609377 | $(174965279) | $1162658 | $(8004374) |

---

The unaudited accompanying notes to the condensed consolidated financial statements are an integral part of these statements.

**REDCLOUD HOLDINGS PLC**

UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

*UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*

 

---

| | | |
|:---|:---|:---|
|  | **For the six month period ended** | **For the six month period ended** |
|  | June 30, 2025 | June 30, 2024 |
| **Cash flows from operating activities:** |  |  |
| Net loss | $(26544958) | $(23888403) |
| Adjustments reconcile net loss to cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 1345798 | 788106 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 7824176 | 39674 |
| &nbsp;&nbsp;&nbsp;Bad debt expense | 82291 | 40858 |
| &nbsp;&nbsp;&nbsp;Loss from change in fair-value of convertible shareholder loan | 232041 | 5356574 |
| &nbsp;&nbsp;&nbsp;Non-cash gain on debt extinguishment | (3838715) |  |
| &nbsp;&nbsp;&nbsp;Accrued interest expense on shareholder loans | 2560810 | 957077 |
| &nbsp;&nbsp;&nbsp;Unrealised loss/(gains) | (1531894) |  |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable and other receivables | 2957000 | (1039664) |
| &nbsp;&nbsp;&nbsp;Other current assets | 1788011 | (296421) |
| &nbsp;&nbsp;&nbsp;Accounts payable and vouchers payable | (2897350) | 1671417 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 1659719 | 588407 |
| &nbsp;&nbsp;&nbsp;Value-added tax payable | 209122 | (108584) |
| &nbsp;&nbsp;&nbsp;Income taxes receivable | 284519 | 231241 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | (47481) | 279786 |
| **Net cash used in operating activities** | (15916911) | (15379932) |
| <br>**Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Purchases of property and equipment | (127237) | (287759) |
| &nbsp;&nbsp;&nbsp;Purchases of intangible assets | (2105528) | (852404) |
| **Net cash used in investing activities** | (2232766) | (1140163) |
| <br>**Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock | 83534362 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of debt (convertible loans) | (22792165) | 16952654 |
| &nbsp;&nbsp;&nbsp;Proceeds from shareholder loan | (40007763) | - |
| **Net cash provided by financing activities** | 20734434 | 16952654 |
| <br>Effect of exchange rate changes on cash and cash equivalents | (2516040) | 1210651 |
| **Change in cash, cash equivalents and restricted cash during the year** | 68717 | 1643210 |
| **Cash, cash equivalents and restricted cash, beginning of year** | 832671 | 587150 |
| **Cash, cash equivalents and restricted cash, end of period** | $901388 | $2230360 |

---

The unaudited accompanying notes to the condensed consolidated financial statements are an integral part of these statements.

**REDCLOUD HOLDINGS PLC** 

NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

*UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*

**Note 1 - Nature of business**

RedCloud Holdings Plc ("RedCloud", and together with its consolidated entities, the "Company") is a private company limited by shares incorporated in England and Wales. The registered office is at 50 Liverpool Street, London, EC2M 7PY, England. RedCloud was incorporated on February 3, 2014. RedCloud operates a cloud based business-to-business open commerce platform, RED 101, in Nigeria, South Africa, Brazil, Peru and Argentina, with cost centers in the United Kingdom and Portugal that allows Brands, Distributors and Retail Merchants to trade products and services on the platform and in the region. The Company generates revenue from commissions charged based on the value of products sold on RED 101.

RedCloud enables commerce through Red101 by enabling Registered Users on the platform to buy ("Buyers") and sell products and services ("Sellers"). Red101 for Buyers enables local merchants to find the best products at the best prices. Red101 for Sellers connects sellers of fast moving consumer goods ("FMCG") with local merchants. RedAds™ allows Sellers of all sizes to promote specific offers and deals on Red101. RedInsights collects information from over 50,000 individual points in real time to provide highly specific data analytical reports and insights based on current market conditions. RedPay encompasses a comprehensive digital e-wallet, financial tools, and access to the world's largest local payment network.

As of June 30, 2025, the Company's open commerce platform connected approximately 68,300 businesses and more than 1,000 distributors across Argentina, Brazil, Nigeria, and South Africa. The Company generates revenue primarily by applying a take rate to the total transaction value ("TTV") of transactions conducted on its platform. For the six months ended June 30, 2025, the Company processed approximately $1.2 billion in TTV, representing an increase of approximately 28% compared to the same period in 2024.

**Note 2 - Summary of significant accounting policies**

***Basis of presentation -*** These unaudited condensed consolidated financial statements ("financial statements") have been presented in United States dollars ("$" or "USD") unless otherwise indicated and are prepared in accordance with United States generally accepted accounting principles ("US GAAP") and pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC").

These financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2024. Management has evaluated all subsequent events through the date these financial statements were issued. In the opinion of management, these financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the financial position, results of operations and cash flows for these interim periods. The reports for the six months ended 30 June 2025 and 2024 are unreviewed, unaudited and do not constitute statutory accounts as defined by the Companies Act 2006.

***Group Reorganisation and Basis of Consolidation -*** On October 23, 2024, a group reorganisation was completed whereby RedCloud Holdings PLC became the new holding company of the group through a reverse takeover transaction. As a result of this reorganisation, the consolidated financial statements have been prepared using the predecessor method of accounting, as the transaction was a common control transaction under US GAAP. Accordingly, the financial information for periods prior to the reorganisation reflects the historical results of RedCloud Technologies Ltd, the accounting predecessor, as the consolidated group did not exist in its current form in the comparative period. The comparative information has not been restated to reflect the legal structure of the group post-reorganisation.

***Going concern -*** The Company has suffered recurring losses, working capital deficit and stockholders' deficit that raise substantial doubt about its ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon its ability to utilize the resources in place to generate future profitable operations, to develop additional acquisition opportunities, and to obtain the necessary financing to meet its obligations and repay its liabilities arising from business operations when they come due.

The Company's financial statements included have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company generated a net loss of $26,544,958 for the six months ended June 30, 2025, as compared to a net loss of $23,888,403 for the six months ended June 30, 2024.

**REDCLOUD HOLDINGS PLC** 

NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

*UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*

**Note 2 - Summary of significant accounting policies (continued)**

As of June 30, 2025, the Company had a stockholders' deficit of $8,004,374, working capital inflow of $3,953,540.38 and cash used in operating activities of $15,916,911.08. The largest component of current liabilities creating this working capital deficiency is by way of loans from a long-term shareholder.

Management believes the Company will be able to continue to develop new opportunities and will be able to obtain additional funds through debt and / or equity financings to facilitate its business strategy; however, there is no assurance of additional funding being available. These financial statements do not include any adjustments to the recorded assets or liabilities that might be necessary should the Company have to curtail or be unable to continue operations.

***Concentration of credit risk -*** Cash and cash equivalents, and accounts receivable are potentially subject to credit risk. A substantial portion of the Company's cash balance is held with a single financial institution in the United Kingdom at June 30, 2025. The Company believes the cash balances are highly liquid.

***Revenue recognition -*** Historically, the Company's revenue comes from a single product offering – the final value fees of sales that occurs on its ecommerce platform. In 2024, the Company also began recognizing revenue from data analytic services integrated into certain platform seller customer contracts. For discussion of the Company's historical final value fees revenue recognition policy, see Note 2 of the December 31, 2024 consolidated financial statements.

For data analytic services, the Company enters integrated written contracts with platform sellers entitling the Company to a stated percentage of the platform seller's sales on the Company's ecommerce platform ("final value fees"). In addition, the Company provides data analytics to the platform seller of its offerings as well as data from the entire platform of all platform sellers. The Company concluded the combined offering is a single performance obligation as the data analytics portion is an insignificant portion of the combined offering value. The performance obligation is to connect buyers and sellers on the Company's ecommerce platform.

As part of the agreement, the Company receives data from the platform seller that the Company uses as part of its overall data analytics population. The Company owes an amount to the platform seller customer based a stated percentage of the platform seller's sales on the Company's ecommerce platform. The Company accounts for this consideration payable to its customers on a gross basis within revenue and marketing and commissions on the statements of operations, as the Company conclude it receives a distinct benefit from the purchase of the platform seller's data for use in the Company's data analytics.

The Company recognizes revenue for this combined offering when it transfers control of promised goods or services to customers. The Company's revenue for final value fees and the corresponding marketing and commission expense for the data analytics received is recognized at the point in time of platform seller sales on the ecommerce platform.

Revenue is recognized in an amount that reflects the consideration to which the Company expects to be entitled. Revenue is recognized net of any taxes collected, which the Company subsequently remits to governmental authorities. The Company invoices the platform sellers monthly, or net settles for revenue and the corresponding data analytics expense, based on the contracted percentage based final value fee of transaction activity occurring on the Company's ecommerce platform. Payments are due from customers within 30 to 90 days.

***Marketing and commissions costs -*** The Company expenses the costs of advertisements in the period during which the advertising space or airtime is used to the caption Marketing and commissions costs on the statements of operations. Internet advertising expenses are recognized based on the terms of the individual agreements, which is generally over the greater of the ratio of the number of clicks delivered over the total number of contracted clicks, on a pay-per-click basis, or on a straight-line basis over the term of the contract.

**REDCLOUD HOLDINGS PLC** 

NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

*UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*

**Note 2 - Summary of significant accounting policies (continued)**

The Company's voucher-based marketing program is designed to incentivize marketplace buyers at the point-of- sale by offering vouchers that can be applied to future purchases. Upon completing a transaction, marketplace buyers (which are not deemed to be the Company's customers) receive vouchers based on predefined criteria at the discretion of the Company, such as transaction value or purchase type, which can be redeemed on subsequent purchases within a set time frame. The related expenses and liabilities are recognized in the period in which the voucher is redeemed at checkout, measured at the face value of the voucher being redeemed. The liability is recognized as a voucher payable on the consolidated balance sheet and within marketing and commissions expense on the statement of operations.

Marketing and commissions costs for the six months ended June 30, 2025 and 2024 amounted to $18,471,073 and $19,136,253, respectively.

***Supplemental cash flow disclosures***

 ****

There was $nil and $nil cash paid for interest expense in the six months ended June 30, 2025 and 2024, respectively.

There was $nil and $nil cash paid for income taxes in the six months ended June 30, 2025 and 2024, respectively.

As discussed in Note 11, in the six months ended June 30, 2025, the Company issued common shares of the Company to its existing shareholders and raised further capital through its IPO listing and share issue as per below:

Schedule of issued common shares

---

| | | | |
|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | |
|  | **Shares** | **Amount** | **Additional Paid-In**<br>**Capital** |
| **Balances, January 1, 2025** | 25000044 | $65280 | $74374429 |
| Reverse take-over |  |  | (12609377) |
| Common stock issued through IPO | 4444445 | 11580 | 20290650 |
| Pref erence shares | 1 | 63905 |  |
| Conversion of shareholder loan into common shares | 14782149 | 38776 | 66977524 |
| Stock-based compensation |  |  | 9055564 |
| Extinguishment of Debt |  |  | 341850 |
| IPO direct costs |  |  | (5421312) |
| Net loss |  |  |  |
| Foreign currency Translation adjustment, net of tax | - | - | - |
| **Balances, June 30, 2025** | 44226639 | $179541 | $153009329 |

---

**REDCLOUD HOLDINGS PLC** 

NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

*UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*

**Note 3 - Accounts receivable and other receivables**

The Company's accounts and other receivable are recorded at amortized cost. The accounts and other receivables balance consists of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| Accounts receivable | $2638591 | $5611980 |
| Other receivables | 15456 | 934 |
| Total | 2654047 | 5612914 |
| Allowance for doubtful accounts | (164512) | (84088) |
| Total accounts and other receivables, net | $2489535 | $5528826 |

---

The Company's June 30, 2025 aging of accounts receivable is as follows:

---

| | |
|:---|:---|
| 1-30 Days | $2450239 |
| 31-60 Days | 61482 |
| 61-90 Days | 24606 |
| 91+ Days | 117720 |
| Total accounts receivables | $2654047 |

---

The Company's December 31, 2024 aging of accounts receivable is as follows:

---

| | |
|:---|:---|
| 1-30 Days | $5481279 |
| 31-60 Days | 25670 |
| 61-90 Days | 21986 |
| 91-180 Days | 83979 |
| Total accounts receivables | $5612914 |

---

**REDCLOUD HOLDINGS PLC** 

NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

*UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*

**Note 4 - Other current assets**

**** 

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| Sales tax receivable | $- | $509333 |
| Prepayments | 990815 | 467089 |
| Deferred Offering Costs | - | 1802404 |
| Total current assets | $990815 | $2778826 |

---

**Note 5 - Property and equipment, net**

Property and equipment consisted of the following:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **At June 30, 2025** | **Useful Lives** | **Opening**<br> **balance** | **Additions** | **Accumulated**<br> **Depreciation** | **Net** |
| Computer equipment | 3 years | $593357 | $456865 | $475888 | $574334 |
| Office equipment | 3 years | 0 | 3158 | 3158 | 0 |
|  |  | $593357 | $460023 | $479046 | $574334 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **At December 31, 2024**<br>| **Useful Lives** | **Opening**<br> **balance** | **Additions** | **Accumulated**<br> **Depreciation**  | **Net** |
| Computer equipment | 3 years | $127148 | $758936 | $292727 | $593357 |
| Office equipment | 3 years | 0 | 2878 | 2878 | 0 |
|  |  | $127148 | $761814 | $295606 | $593357 |

---

Depreciation expense for the six months ended June 30, 2025 and 2024 was $146,260 and $51,908, respectively, within the "Depreciation and amortization" caption on the statements of operations.

At June 30, 2025, the Company's property, plant and equipment had no significant restrictions on title or pledges as security for liabilities, there are no significant commitments for future purchases, and there were no significant disposals during the six months ended June 30, 2025 and 2024.

**REDCLOUD HOLDINGS PLC** 

NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

*UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*

**Note 6 - Intangible assets, net**

A continuity schedule of intangible assets at June 30, 2025 and December 31, 2024 is as follows:

---

| | | |
|:---|:---|:---|
|  | **June**<br> **Capitalized Software**<br>**2025** | **December**<br> **Development**<br>**2024** |
| **Cost** |  |  |
| Balance at January 1 | $10231824 | $7044658 |
| Additions | 1475522 | 3367579 |
| Foreign exchange impact | 1083182 | (180413) |
| Balance at June 2025, 2024 | 12790529 | 10231824 |
| **Accumulated Amortization** |  |  |
| <br> Balance at January 1 | <br>4063291 | <br>2420479 |
| Additions | 1199537 | 1717575 |
| Foreign exchange impact | 453176 | (74763) |
| Balance at June 2025, 2024 | 5716004 | 4063291 |
| **Net Book Value at June 2025, 2024** | $7074524 | $6168533 |

---

The Company's intangible assets consist of capitalized software development costs for its hosted ecommerce platform with related ongoing functionality and enhancements. The gross cost of the intangible assets is amortized over their estimated useful lives of five years, as the Company does not expect the assets to have significant residual value.

Amortization expense for the six months ended June 30, 2025 and 2024 was $1,199,537 and $736,713 respectively, within "Depreciation and amortization" caption on the statements of operations.

At June 30, 2025, the estimated aggregate amortization expense for each of the next five years is as follows:

---

| | |
|:---|:---|
|  | **30-Jun-25** |
| Remaining 2025 | $1652713 |
| 2026 | 2168725 |
| 2027 | 1951852 |
| 2028 | 1040988 |
| 2029 | 208198 |
| Thereafter | 52049 |
|  | 7074524 |

---

**REDCLOUD HOLDINGS PLC**<br> NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS<br> *UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*<br>

**Note 7 - Accrued expenses**

Accrued expenses consisted of the following:

**Accrued expenses**

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2024** | **December 31,**<br>**2023** |
| Accrued payables | $2135491 | $2058395 |
| Employment taxes payable | 2589397 | 1070456 |
| Other accrued expenses | 63346 | (336) |
| Total accrued expenses | $4788234 | $3128515 |

---

Certain employees of the Company's United Kingdom legal entities participate in defined contribution pension plans. The Company recorded an expense of $211,516 and expense of $37,442 for the six months ended June 30, 2025 and 2024, respectively, in the caption "Salaries, benefits, contractor costs" on the statement of operations related to its contributions to this plan.

**Note 8 - Other current liabilities**

Other current liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| Withholding tax payable | 182 | 454883 |
| Other current liabilities | 95410 | (311810) |
| Total other current liabilities | $95592 | $143073 |

---

**Note 9 - Borrowings**

In addition to the borrowings that continue to be outstanding from December 31, 2024, current and long-term borrowings consisted of the following at June 30, 2025:

**Shareholder Loans Payable**

In addition to the borrowings that continue to be outstanding from December 31, 2024, the Company recorded the following loans from shareholders at amortized cost at June 30, 2025.

In January 2025, the Company entered into an unsecured term loan agreement with a related party shareholder in the amount of £2,300,000 ($3 million at June 30, 2024) carrying interest at the rate of 7.75% over the five year - term of the loan.

**REDCLOUD HOLDINGS PLC**<br> NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS<br> *UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*<br>

**Note 9 – Borrowings (continued)**

In May 2025, a related party shareholder advanced the Company borrowings totaling £1 849 502 ($2.4 million at June 30, 2024).

The Company's amount of outstanding shareholder loans payable, current and long-term, was $9,013,611 and $50,057,013 as of June 30, 2025 and December 31, 2024, respectively.

The decrease is attributable to the conversion of the loan to equity.

**Convertible Shareholder Loans at Fair Value**

In addition to the convertible shareholder loans outstanding at December 31, 2024, the Company entered into no additional convertible loan agreements in 2025.

The Company entered into a convertible loan note agreement with a shareholder in the amount of £6,000,000 in two tranches comprising £3,000,000 ($3.8 million at June 30, 2024) on February 8, 2024 and an additional £3,000,000 ($3.8 million at June 30, 2024) on March 26, 2024. Interest accrues at a rate of 15% per annum with the note converting on the earlier of either IPO or loan expiration on March 5, 2026. The February tranche is convertible into the most senior class of shares issued if the conversion is due to a Company financing event, at a 35% discount to the financing event price. The February tranche was convertible into the most senior class of shares outstanding at the time of conversion, upon the occurrence of the Company's IPO, at a 35% discount to the IPO price. The March tranche had similar terms but provided a 25% discount to the price at which securities were issued in connection with the IPO

The fair value of these convertible shareholder loans are classified as Level 2 in the fair value hierarchy. The primary input to the valuation model includes observable market interest rates from companies with similar estimated credit ratings, and observable interest rates on the Company's borrowings. At June 30, 2024, the valuation assumptions include a discount rate of 10% and conversion date of March 21, 2025, which is the Company's estimated IPO date. All convertible loans were as such converted to equity as per note 11 below.

The changes in fair value appear in the caption "Loss from change in fair-value of convertible shareholder loan" on the statement of operations. A continuity schedule of the Company's convertible shareholder loans, including changes in fair value, for the six months ended June 30, 2025 and year end December 31, 2024 is as follows:

---

| | | |
|:---|:---|:---|
|  | **Shareholder convertible loans, at fair value** | **Shareholder convertible loans, at fair value** |
|  | **2025** | **2024** |
| Balance at January 1 | $22560124 | $9380301 |
| Changes in fair value | 232041 | 5951087 |
| Conversion to common shares | (23183562) |  |
| Borrowings |  | 7573800 |
| Foreign exchange impacts | 391397 | (345064) |
| Balance at reporting period end | $- | $22560124 |

---

**REDCLOUD HOLDINGS PLC**<br> NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS<br> *UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*<br>

**Note 9 – Borrowings (continued)**

The following table summarizes the stated debt maturities and scheduled amortization payments, excluding debt premiums and discounts, for each of the five subsequent years to June 30, 2025 and thereafter.

---

| | | | |
|:---|:---|:---|:---|
|  | **30-Jun-25** | **30-Jun-25** | **30-Jun-25** |
|  | **Shareholder loans**<br> **payable- current**<br> **and long-term** | **Short-term**<br> **borrowings** | **Shareholder**<br> **convertible loans**<br> **at fair value** |
| Remaining 2025 | $- | $315940 | $- |
| 2026 |  |  |  |
| 2027 |  |  |  |
| 2028 |  |  |  |
| 2029 |  |  |  |
| Thereafter | 9013611 | - | - |
| Debt maturities | $9013611 | $315940 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0 |
| Less: debt discount | - | - | - |
| Total borrowings | $9013611 | $315940 | $0 |

---

**Note 10 - Reportable segments**

Segments reflect how the Company's operations are managed, how the Company's Chief Executive Officer, who is the chief operating decision maker, allocates resources and evaluates performance, and how the Company's internal management financial reporting is structured. For the six months ended June 30, 2024 and 2023, the Company's reporting segments are based on its significant countries of operation (e.g., Nigeria and Argentina), aggregate of operating segments representing all other countries of operation (e.g., Brazil, South Africa, Portugal and Peru), plus its corporate and software development operations in the United Kingdom.

As per ASC 280, if an operating segment meets any of the 10% quantitative thresholds (revenue, profit/loss, or assets), it is considered a reportable segment and must be disclosed separately.

The Company develops and manages the global ecommerce platform in the United Kingdom, with its revenue seeking operations in the foreign countries. The Company's segments reported by country are consistent with its views of regulatory, economic and currency risk for the businesses as well.

**REDCLOUD HOLDINGS PLC**<br> NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS<br> *UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*<br>

**Note 10 - Reportable segments (continued)**

Statements of operations for the Company's reporting segments for the six months ending June 30, 2025, and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **H1 Ended June 30, 2025** | Nigeria | Argentina | United Kingdom | Other | Total |
| Revenue | $15457806 | $51925 | $- | $2464016 | $17973748 |
| Operating expenses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 145310 | 117427 | 767257 | 320749 | 1350742 |
| &nbsp;&nbsp;&nbsp;Salaries, benefits, contractor costs | 600668 | 545208 | 9370158 | 2304801 | 12820835 |
| &nbsp;&nbsp;&nbsp;Marketing and commissions | 15475641 | 67542 | 259819 | 2668071 | 18471073 |
| &nbsp;&nbsp;&nbsp;Travel | 105972 |  | 439595 | 512 | 546080 |
| &nbsp;&nbsp;&nbsp;Professional fees | 1042 |  | 955276 | 202279 | 1158597 |
| &nbsp;&nbsp;&nbsp;Product and technology development |  | 23200 | 2240960 | 13530 | 2277689 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | - | - | 1345798 | - | 1345798 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | $16328633 | $753377 | $15378863 | $5509941 | $37970814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss from operations | (870826) | (701452) | (15378863) | (3045925) | (19997066) |
| Other expense: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest (income)/expense |  | (34273) | (1141686) | (543) | (1176502) |
| &nbsp;&nbsp;&nbsp;Gain on Debt Extinguishment |  |  | 3838715 |  | 3838715 |
| &nbsp;&nbsp;&nbsp;Loss from change in fair-value of convertible Shareholder loans |  |  | (232041) |  | (232041) |
| &nbsp;&nbsp;&nbsp;Stock based Compensation |  |  | (7824176) |  | (7824176) |
| &nbsp;&nbsp;&nbsp;Foreign currency loss (gain) | 11 | - | (1649570) | 6731 | (1642827) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss before income taxes | $(870815) | $(735725) | $(22387621) | $(3039737) | $(27033896) |
| Income tax benefit (expense) | - | $- | $488527 | $(413) | $488940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(870815) | $(735725) | $(21899095) | $(3039323) | $(26544958) |

---

**REDCLOUD HOLDINGS PLC**<br> NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS<br> *UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*<br>

**Note 10 - Reportable segments (continued)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **H1 Ended June 30, 2024** | Nigeria | Argentina | United Kingdom | Other | Total |
| Revenue | $10318932 | $4099199 | $- | $1657335 | $16075466 |
| <br>Operating expenses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 31602 | $131735 | $123513 | $214945 | $501795 |
| &nbsp;&nbsp;&nbsp;Salaries, benefits, contractor costs | 218575 | $110301 | $6335251 | $2230295 | $8894422 |
| &nbsp;&nbsp;&nbsp;Marketing and commissions | 10619231 | $5587032 | $1075680 | $1854310 | $19136253 |
| &nbsp;&nbsp;&nbsp;Travel | 119395 | $2825 | $587617 | $4967 | $714804 |
| &nbsp;&nbsp;&nbsp;Professional fees | 61008 | $114768 | $590451 | $518767 | $1284994 |
| &nbsp;&nbsp;&nbsp;Product and technology development |  | $- | $1344937 | $372 | $1345309 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | - | $- | $788106 | $- | $788106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 11049811 | $5946661 | $10845555 | $4823656 | $32665683 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss from operations | (730879) | $(1847462) | $(10845555) | $(3166321) | $(16590217) |
| <br>Other expense: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest (income)/expense | (191703) | $(120824) | $(994313) | $(3157) | $(1309997) |
| &nbsp;&nbsp;&nbsp;Loss from change in fair-value of convertible Shareholder loans |  | $- | $(5356574) | $- | $(5356574) |
| &nbsp;&nbsp;&nbsp;Foreign currency loss (gain) | 61 | $262121 | $(1110654) | $(5242) | $(853714) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss before income taxes | (922521) | $(1706165) | $(18307096) | $(3174720) | $(24110502) |
| Income tax benefit (expense) | - | $- | $222099 | $- | $222099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(922521) | $(1706165) | $(18084997) | $(3174720) | $(23888403) |

---

**REDCLOUD HOLDINGS PLC**<br> NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS<br> *UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*<br>

The Company has a significant portion of its operations and net assets outside its home county of the United Kingdom. See the table below for the geographic concentration of the Company's assets as of June 30, 2025 and December 31, 2024.

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| United Kingdom |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $756936 | $648453 |
| &nbsp;&nbsp;&nbsp;Accounts receivables and other receivables, net | $- | $- |
| &nbsp;&nbsp;&nbsp;Income taxes receivable | $1260843 | $1607754 |
| &nbsp;&nbsp;&nbsp;Other current assets | $1039853 | $2697852 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | $574334 | $593358 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | $7074524 | $6168534 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total United Kingdom | 10706490 | 11715951 |
| Nigeria |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $5139 | $33458 |
| &nbsp;&nbsp;&nbsp;Accounts receivables and other | $2303820 | $2052086 |
| &nbsp;&nbsp;&nbsp;receivables, net |  |  |
| &nbsp;&nbsp;&nbsp;Other current assets | $9056 | $35125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Nigeria | 2318015 | 2120669 |
| Argentina |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $7844 | $49740 |
| &nbsp;&nbsp;&nbsp;Accounts receivables and other | $163021 | $2975215 |
| &nbsp;&nbsp;&nbsp;receivables, net |  |  |
| &nbsp;&nbsp;&nbsp;Other current assets | $16144 | $6818 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Argentina | 187009 | 3031773 |
| Other |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $131469 | $101020 |
| &nbsp;&nbsp;&nbsp;Accounts receivables and other receivables, net | $22694 | $501525 |
| &nbsp;&nbsp;&nbsp;Income taxes receivable | $214 | $50075 |
| &nbsp;&nbsp;&nbsp;Other current assets | $38016 | $39030 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Other | $192393 | $691650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $13403906 | $17560043 |

---

The majority of the Company's revenue for the six months ended June 30, 2025 and 2024 relates to sales activity on its ecommerce platform. In 2024 and 2025, the Company did not have sales to a single customer exceeding 10% of its consolidated revenue.

**REDCLOUD HOLDINGS PLC**<br> NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS<br> *UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*<br>

**Note 11 - Common stock**

**Issued, outstanding and authorized shares**

At June 30, 2025 and December 31, 2024 the Company had an outstanding share capital of 44,226,638 and 25,000,044 ordinary shares with a par value £0.002 per share ("Common Stock").

Further there was a preference shares issue 1 share with a par value of £50,000 as a conversion of loan to equity to a related party.

**Recapitalization**

In March 2025, the Company issued 4,444,445 common shares of the Company as part of its share subscription in its IPO listing as well a further 14,782,149 shares we issued as a conversion of shareholders loans to equity as per Note 2 above.

**Note 12 - Income taxes**

*Income tax benefit and effective income tax rate*

 

The entire income tax benefit of $488,940 and $222,099 for the six months ended June 30, 2025 and 2024, respectively, was allocated to loss from continuing operations, and solely related to refundable income tax credits for research and development ("R&D") permitted in the United Kingdom ("UK").

The following schedule summarizes the principal differences between income tax benefit at the UK statutory income tax rate and the consolidated effective income tax rate reflected in the condensed consolidated financial statements:

---

| | | |
|:---|:---|:---|
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| UK Federal income tax rate | 25.0% | 25.0% |
| Valuation allowance | (18.9) | (18.9) |
| Change in UK statutory income tax rate |  | 0 |
| Nondeductible expense | (5.1) | (5.1) |
| R&D expenditures | 0.9 | 0.9 |
| Foreign income tax rate differential | (1.0) | (1.0) |
| Effective income tax rate, percentage | 0.9% | 0.9% |

---

The reconciliation of the consolidated effective income tax rates is based on the UK statutory income tax rates of 25.0% for the six months ended June 30, 2025, and 2024. The Parent Company is domiciled in the UK, and therefore, the consolidated effective income tax rate reconciliation is based on the UK income tax rates rather than the statutory income tax rates in the United States.

The Company's estimate of income tax benefit for the six months ended June 30, 2025 and 2024 is based on the actual effective tax rate for the year-to-date periods as management believes it is the best estimate of the annual effective tax rate. Management expects the annual effective tax rate to vary due to the amount of eligible research and development refundable tax credits in the United Kingdom compared to the magnitude of revenue growth and resulting income or losses in the countries where the ecommerce platform has launched.

**REDCLOUD HOLDINGS PLC**<br> NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS<br> *UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*<br>

**Note 12 - Income taxes (continued)**

*Deferred income taxes – valuation allowance*

 

Management evaluates the realizability of its net deferred income tax assets to determine if a valuation allowance is required. Management assesses whether a valuation allowance should be established based on the consideration of all available evidence using a "more-likely-than-not" standard, with significant weight being given to evidence that can be objectively verified. Since the Company operates in multiple jurisdictions, we assess the need for a valuation allowance on a jurisdiction-by-jurisdiction basis, considering the effects of local tax law.

At June 30, 2025 and December 31, 2024, management evaluated the realizability of its net deferred income tax assets to determine if a full valuation allowance was required. Based on Management's assessment, management determined that the UK Parent and each of its foreign subsidiaries, have a recent history of significant cumulative pre-tax losses, that were experienced by the UK Parent and each of its foreign subsidiaries' commencement of operations through June 30, 2025, and December 31, 2024. As a result of the significant weight of this negative evidence, management believes it is more likely than not that the Company's net deferred income tax assets will not be fully realizable, and therefore management provided for a full valuation allowance against all its net deferred income tax assets.

*Uncertain tax positions*

 

At June 30, 2025 and December 31, 2024, the Company did not record any unrecognized income tax positions related to uncertain tax positions.

**Note 13 - Net loss per share**

Basic net loss per share is computed by dividing net loss for the period by the weighted average number of common shares outstanding during the six months ended June 30 each year. Diluted net loss per share is computed by dividing net loss for the year by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during six months ended June 30 each year. The dilutive effect of outstanding options and equity incentive awards is reflected in diluted net loss per share by application of the treasury stock method. The calculation of diluted net loss per share excludes all anti-dilutive common shares.

For the six months ended June 30, 2025 and 2024, the effects of the conversion of the convertible shareholder loans and stock options would have been antidilutive and, as a consequence, they were not factored into the calculation of diluted earnings per share.

In 2025, prior to the Company's IPO, the nominal value of the Company's ordinary shares was adjusted from GBP 0.001 to GBP 0.002 per share. As a result of this adjustment, the total number of issued ordinary shares was reduced from 50,000,088 to 25,000,044, with no change in the aggregate nominal value of issued share capital. This change was effected to align the share capital structure with the requirements of the public listing and had no impact on the Company's total equity. As such the EPS number of shares for 2024 has been restated.

**REDCLOUD HOLDINGS PLC**<br> NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS<br> *UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*<br>

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **June 30,**<br>**2024** |
| **Numerator:** |  |  |
| Net loss - basic and diluted | $(26544958) | $(23888403) |
| **Denominator:** |  |  |
| Weighted average shares outstanding - basic and diluted | 35745864 | 23566694 |
| **Net loss per share - basic and diluted** | $(0.74) | $(1.01) |

---

The following securities were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive as the Company has a net loss for each six months period ended:

**Note 13 - Net loss per share (continued)**

 **Schedule of anti-dilutive securities computation of diluted shares outstanding**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Activity** | **Number of Options** | **Weighted Avg. Exercise Price** | **Grant Date Fair Value** | **Intrinsic Value** | **Weighted Avg. Remaining Life** |
| **Outstanding options at Dec 31, 2022** | **1456125** | **0.001** | $**1001265** | $**998559** | **8.9** |
| Forfeited | (349042) | 0.001 | (149405) | (148861) | 8.5 |
| **Outstanding options at Dec 31, 2023** | **1107084** | **0.001** | **851860** | **849698** | **7.9** |
| Granted | 1885625 | 1.179 | 7590933 | 4874513 | 10.0 |
| Forfeited | (186875) | 0.001 | (76219) | (76025) | 7.4 |
| Regranted | 476875 | 0.169 | 2125883 | 1924636 | 10.0 |
| Cancelled | (610625) | 0.001 | (496805) | (495611) | 7.2 |
| **Outstanding options at Dec 31, 2024** | **2672084** |  | $**9995653** | $**7077209** |  |
| Granted |  |  |  |  |  |
| Forfeited |  |  |  |  |  |
| Regranted |  |  |  |  |  |
| Cancelled | - | - | - | - | - |
| **Outstanding options at June 30, 2025** | **2672084** |  | $**9995653** | $**7077209** |  |

---

**REDCLOUD HOLDINGS PLC**<br> NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS<br> *UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*<br>

**Note 14 - Commitments and contingencies and other legal matters**

The Company is subject to certain contingent liabilities with respect to existing or potential claims, lawsuits and other proceedings. The Company accrues liabilities when it considers probable that future costs will be incurred and such costs can be reasonably estimated. Expected legal costs related to claims are accrued when the legal service is provided. Proceeding-related liabilities are based on developments to date and historical information related to actions claimed against the Company.

The Company has no significant new commitments or contingencies at June 30, 2025 other than those discussed in Note 15 of the December 31, 2024 financial statements and as discussed below.

The Company had previously recorded GBP450,000 ($562,000) as at December 31, 2023, to other current liabilities for its estimated liability involving a commercial dispute regarding the amounts due under a purported loan agreement dated May 2014. The Company has reduced the liability estimated as of December 31, 2024, to GBP350,000 ($437,500) as negotiations to resolve the dispute had advanced through the course of the year. On 2 May 2025 the Company entered into a settlement agreement to resolve the dispute, in the amount of £350,000 inclusive of interests and costs

The Company received a claim from a former contractor in 2025 seeking an amount of £203,140 in relation to certain purported amounts due and payable by the Company following the termination of the contractor's contract. Following an exchange of pre-action correspondence in which the Company denied the claim, the Company has not heard further from the contractor. The Company is not of the view a contingent liability needs to be made in relation to this claim.

In the year ended December 31, 2024, the Company recorded South African Rand ("ZAR") ZAR 240,000 ($12,698), to other current liabilities for its estimated liability involving an employment related matter with a former employee. The Company entered into a Settlement Agreement with the former employee on 11 March 2025 in respect of which the Company agreed to resolve the claim at an agreed amount of ZAR 240,000 ($12,698).

In the year ended December 31, 2024, the Company recorded South African Rand ("ZAR") ZAR 150,000 ($7,936), to other current liabilities for its estimated liability involving an employment related matter with a former employee. The Company entered into a Settlement Agreement with the former employee on 7 February 2025 in respect of which the Company agreed to resolve the claim at an agreed amount of ZAR 150,000 ($7,936).

**Note 15 - Related party transactions**

**Management consultancy agreements**

In April 2019, the Company entered into a consultancy agreement with Chief Executive Officer, Justin Floyd, where the Company pays $25,000 per month for Founder Services. As at June 30, 2025 and year ended December 31, 2024, the agreement was still effective and the Company had annual expense of $300,000 per year, which is included in the salaries, benefits and personnel costs on the consolidated statements of operations. No amounts were payable as of June 30, 2025 or December 31, 2024.

In April 2019, the Company entered into a consultancy agreement with Director, Soumaya Hamzaoui, where the Company pays 19,883 euros ($22,000 and $21,000 at June 30, 2025 and December 31, 2024, respectively) per month for Founder Services. As at June 30, 2025 and year ended December 31, 2024, the agreement was still effective and the Company had an annual expense of 238,596 euros ($263,000 and $255,000 at As at June 30, 2025 and year ended December 31, 2024, respectively) per year, which is included in the salaries, benefits and contractor costs on the consolidated statement of operations. No amounts were payable as of June 30, 2025 or December 31, 2024.

**REDCLOUD HOLDINGS PLC**<br> NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS<br> *UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*<br>

**Note 15 - Related party transactions (continued)**

**Shareholder loan and convertible shareholder loan agreements**

The Company's shareholder loans and convertible shareholder loans discussed at Note 9 are between the Company and certain common stock shareholders of the Company that are related parties.

**Note 16 - Subsequent events**

Management has performed an evaluation of subsequent events after the balance sheet date of June 30, 2025 through October 16, 2025, the date that the financial statements were available to be issued.

**Joint Venture Agreement**

On September 2, 2025, the Company announced a joint venture with Kayanat, a Saudi Arabian family office, to establish RedCloud Arabia, a new entity focused on digitizing and transforming the FMCG sector in Saudi Arabia. The joint venture will be jointly owned by RedCloud Holdings PLC and Kayanat, with operations expected to commence in Q4 2025. RedCloud Arabia will deploy the Company's AI-powered RedAI trading platform, Red101 for retailers, and the TradeX bulk trading program. The joint venture is expected to be accounted for under the equity method of accounting.

Other than the above, there were no material subsequent events to highlight.

**Loan Agreement**

On 23 September 2025, RedCloud Technology Ltd signed a Framework Loan Agreement with Lienhardt & Partner Privatbank Zürich AG, securing access to a revolving credit facility of up to GBP 2,000,000. The amount available under this facility is subject to the value of collateral accepted by the bank.

*Key highlights of the agreement include:*

 

Loan Types: The facility can be used as an overdraft, a fixed advance, or to meet margin requirements for forward exchange contracts and other derivative instruments.

*Interest Rates:*

 

● Overdrafts
 accrue interest at 4.95 % per annum, calculated daily.

● Fixed
 advances in foreign currencies are priced at the bank's internal refinancing rate plus
 a 1.25 % margin.

*Collateral:*

 

The facility is secured by assets approved by the bank, with the loan amount determined by the applicable loan- to-value ratio.

*Termination:*

 

Either party may terminate the agreement at any time with immediate effect. Any fixed-term loans already drawn will remain in place until maturity.

*Purpose:*

 

The facility is intended to support trading in financial instruments, in line with Article 3c(5) of the Swiss Financial Services Act (FIDLEG).

This agreement is considered a non-adjusting subsequent event, as it was entered into after the 2024 reporting date but before the financial statements were authorised for issue. While it does not impact the financial position as at 31 December 2024, it is disclosed here to provide transparency about significant developments after year- end.

**REDCLOUD HOLDINGS PLC**<br> NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS<br> *UNAUDITED FOR THE SIX MONTHS ENDED JUNE 30, 2025, AND AUDITED 2024*<br>

**Note 16 - Subsequent events (continued)**

**Share options**

● On July 3, 2025, RedCloud Holdings plc entered into a securities purchase agreement with certain institutional and accredited investors, including the Company's largest current shareholder, and a member of the Board, to purchase 9,000,000 of its ordinary shares and accompanying warrants to purchase 18,000,000 ordinary shares at a combined purchase price of $1.50 per ordinary share and accompanying warrants in a private placement. The Company received aggregate gross proceeds of $13.5 million before deducting placement agent fees and other private placement expenses. The private placement closed on July 8, 2024.

● Between 29 September and 10 November 2025, a total of 2,091,717 share options were exercised at an exercise price of $1.50 per option, resulting in gross proceeds of $3,137,575.50 . The exercise led to the issuance of 2,091,717 new ordinary shares each.The newly issued shares rank pari passu with the existing ordinary shares in issue.

***Departure and Appointment of Certain Officers***

On December 31, 2025, Neil Woodman's term as Executive Vice President of Finance of RedCloud Holdings plc (the "Company") will expire, and Mr. Woodman has informed the Company that he does not intend to return to the role. In connection with this notification, the Company's Board of Directors met and agreed to appoint Maria Magdalena Gonzalez, who currently serves as a member of the Board and the audit committee, as Chief Financial Officer ("CFO") effective January 5, 2026.

The above events are considered a non-recognized subsequent event under ASC 855 Subsequent Events, as it occurred after the balance sheet date and does not provide additional evidence about conditions that existed at 30 June 2025. Accordingly, no adjustment has been made to the financial statements as of that date, but disclosure is provided to ensure transparency of significant post-year-end equity transactions.