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Unaudited Financial Statements |
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for the Year Ended 31 December 2018 |
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for |
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Den Automation Ltd. |
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REGISTERED NUMBER:
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Unaudited Financial Statements |
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for the Year Ended 31 December 2018 |
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for |
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Den Automation Ltd. |
Den Automation Ltd. (Registered number: 08448361) |
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Contents of the Financial Statements |
for the Year Ended 31 December 2018 |
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Page |
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Company Information | 1 |
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Chartered Accountants' Report | 2 |
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Balance Sheet | 3 |
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Notes to the Financial Statements | 4 |
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Den Automation Ltd. |
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Company Information |
for the Year Ended 31 December 2018 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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ACCOUNTANTS: |
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Chartered Accountants |
Ground Floor, Bury House |
31 Bury Street |
London |
EC3A 5AR |
Chartered Accountants' Report to the Board of Directors |
on the Unaudited Financial Statements of |
Den Automation Ltd. |
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The following reproduces the text of the report prepared for the directors in respect of the company's annual |
unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file |
a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the |
Report of the Directors are not required to be filed with the Registrar of Companies. |
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In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the |
financial statements of Den Automation Ltd. for the year ended 31 December 2018 which comprise the Income |
Statement, Balance Sheet and the related notes from the company's accounting records and from information and |
explanations you have given us. |
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As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance. |
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This report is made solely to the Board of Directors of Den Automation Ltd., as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Den Automation Ltd. and state those matters that we have agreed to state to the Board of Directors of Den Automation Ltd., as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Den Automation Ltd. and its Board of Directors, as a body, for our work or for this report. |
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It is your duty to ensure that Den Automation Ltd. has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Den Automation Ltd.. You consider that Den Automation Ltd. is exempt from the statutory audit requirement for the year. |
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We have not been instructed to carry out an audit or a review of the financial statements of Den Automation Ltd.. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. |
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Chartered Accountants |
Ground Floor, Bury House |
31 Bury Street |
London |
EC3A 5AR |
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Den Automation Ltd. (Registered number: 08448361) |
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Balance Sheet |
31 December 2018 |
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2018 | 2017 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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Tangible assets | 5 |
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CURRENT ASSETS |
Stocks |
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Debtors | 6 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 7 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CAPITAL AND RESERVES |
Called up share capital | 9 |
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Share premium | 10 |
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Retained earnings | 10 | ( |
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SHAREHOLDERS' FUNDS |
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The directors acknowledge their responsibilities for: |
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ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies
Act 2006 and |
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preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of
each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors on
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Den Automation Ltd. (Registered number: 08448361) |
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Notes to the Financial Statements |
for the Year Ended 31 December 2018 |
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1. | STATUTORY INFORMATION |
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Den Automation Ltd. is a
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registered number and registered office address can be found on the Company Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Going Concern |
The company's ongoing losses have been funded by a series of capital injection and the company continues to be |
reliant on further equity funding in order to finance operations until the launch of its products in January 2019. |
Such reliance is expected to reduce as sales opportunities increase. The financial statements have been prepared |
on a going concern basis, which assumes the continued support of its investors for a period greater than 12 |
months from the date of approval of these financial statements. |
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The financial statements do not include any adjustments that would result from a failure to obtain continued |
support. |
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Intangible assets |
The accounts reflect the costs incurred to date in relation to applications for patents across certain territories |
around the globe including UK.The patents once granted will have a useful life of 10 years. Given that the |
company is in the process of designing products with prototypes with no income, the costs incurred which |
currently are capitalised on the Balance Sheet will be amortised via the profit and loss account from the point |
sales income arises. |
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Tangible fixed assets |
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Tooling | - |
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R & D computers & equipment | - |
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Office furniture & fittings | - |
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Computer & office equipment | - |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow |
moving items. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to |
the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or |
substantively enacted by the balance sheet date. |
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Den Automation Ltd. (Registered number: 08448361) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
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2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance |
sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from |
those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that |
have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the |
timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they |
will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the |
lease. |
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Pension costs and other post-retirement benefits |
The company accounts for pension costs on the basis of contributions paid in the course of the period to a |
defined employee pension scheme under its auto-enrolment obligations. |
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Share based payments |
The company grants from to time share options to its employees and non-employees service providers. In |
accordance with FRS 102 Section 26 "Share based payment", the company recognises a charge to its Profit & |
Loss Account for those where shares have vested with an equivalent provision on the Balance Sheet on a straight |
line basis. Where options have lapsed, the provision is released back to the Profit & Loss Account in the year in |
which the event occurs. Where options are exercised the provision is reduced and an equivalent value is credited |
to the share capital and share premium account. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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4. | INTANGIBLE FIXED ASSETS |
Patents |
and |
licences |
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COST |
At 1 January 2018 |
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Additions |
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Write offs | (30,946 | ) |
At 31 December 2018 |
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NET BOOK VALUE |
At 31 December 2018 |
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At 31 December 2017 |
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Den Automation Ltd. (Registered number: 08448361) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
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5. | TANGIBLE FIXED ASSETS |
R & D | Office | Computer |
computers | furniture | & office |
Tooling | & equipment | & fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2018 |
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Additions |
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At 31 December 2018 |
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DEPRECIATION |
At 1 January 2018 |
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Charge for year |
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At 31 December 2018 |
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NET BOOK VALUE |
At 31 December 2018 |
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At 31 December 2017 |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Other debtors |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Trade creditors |
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Taxation and social security |
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Other creditors |
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8. | LEASING AGREEMENTS |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
2018 | 2017 |
£ | £ |
Within one year |
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9. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.2018 | 31.12.2017 |
value: | £ | £ |
2,756,716 | Ordinary | £0.000001 | 3 | 2 |
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During the year, 38,463 Ordinary shares of £0.000001 each were allotted as fully paid at a premium of £3.90 per |
share and 356,508 Ordinary shares of £0.000001 each were allotted as fully paid at a premium of £5.40 per |
share. |
Den Automation Ltd. (Registered number: 08448361) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
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10. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
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At 1 January 2018 | ( |
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434,281 |
Deficit for the year | ( |
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Cash share issue | - | 2,075,147 | 2,075,147 |
At 31 December 2018 | ( |
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499,704 |
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11. | RELATED PARTY DISCLOSURES |
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a) Included in debtors is an amount of £198 (2017- amount due to: £43,193) owed by one of the directors, Y. |
Khattak. |
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b) During the year the company received interest free loans of £75,000 from shareholders. These loans were |
repaid in the year. |
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c) During the year the company received interest bearing loans of £300,000 from Smart Cells International |
Limited, a company owned by one of the directors and shareholders and was repaid in the year. The interest |
charged were between 10% to 20%. |
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d) During the year the company received interest free loans of £80,000 from a shareholder. The loan outstanding |
at 31.12.2018 is £60,000. |
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e) Included in creditors within one year is a balance of £19,000 owed to S Ahmed, a director and shareholder of |
the company. |
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f) Funding costs include £23,000 payable to S Ahmed, a director and shareholder of the company. |
Den Automation Ltd. (Registered number: 08448361) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
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12. | SHARE BASED PAYMENTS TRANSACTIONS |
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a) The company has granted share options to its employees under the UK HMRC approved Enterprise |
Management Incentive Scheme which was adopted in November 2015. |
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The share option scheme provides employees with the option to acquire ordinary shares in the company at a |
fixed exercise price. An employee's ability to exercise this option is subject to the employee still employed by |
the company at the end of the vesting period. |
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b) In addition, the company has also granted share options to its service providers under the unapproved option |
deed. |
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The position at the reporting date on the unexpired options was as follows: |
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Employees | Non-employees | Total |
Number | Number | Number |
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At 1 January 2018 | 132,950 | 9,050 | 142,000 |
Granted in the year | 93,160 | 2,500 | 95,660 |
Exercised in the year | - | - | - |
Lapsed in the year | - | - | - |
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At 31 December 2018 | 226,110 | 11,550 | 237,660 |
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£ | £ | £ |
Fair value of the options | 1,220,994 | 62,370 | 1283,364 |
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The fair value of the share options was determined by reference to the most recent exercise to raise capital by |
issue of new shares in the Company. |
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The charge to the Profit & Loss Account for the year was £86,229 (2017-£82,374). |