Registered Number:
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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CONTENTS
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COMPANY INFORMATION
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GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
Luminance’s specialised legal co-pilot software uses next-generation AI to automate the generation, negotiation and analysis of contracts. The platform comprises multiple artificial intelligence software-as-a-service products serving corporate and law firm customers.
The group employs research and development professionals who are largely based in its Cambridge office, including PHD mathematicians, AI and machine learning experts and software engineers. The group has personnel in the UK, Germany, USA and Singapore. Luminance Inc operations comprise of providing marketing and sales support for the UK parent company, with personnel largely based out of the office in New York.
During its 2022 financial year, Luminance grew recognised revenue from £3.8 million to £5.9 million. This revenue growth was driven predominantly by new customers in the year, led by sales of Corporate product subscriptions, which resulted in overall subscription ARR (annualized recurring revenue) growing by approximately 3x year on year to December 2022. The group recorded an operating loss in the year, as the business continued to invest in research and development of the product as well as in adding new customers. Product development focused on building an end-to-end legal AI co-pilot for all corporate customers’ contracting needs.
The group had net liabilities at year end in December 2022 of £13 million. In April 2023 the company completed a new equity financing round. As part of this financing, the long-term liabilities as at year end which were convertible loan notes, converted to equity resulting in a positive net asset balance.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
Luminance considers the principal risks and uncertainties it faces to be in four primary categories. These are risks around its:
- People attraction, development and retention - Technology and products - Foreign exchange – translation risk - Data security People attraction, development and retention The group relies on the talents of highly skilled personnel, including its management team and its technologists. Retention of senior and high-performing staff is central to the group’s strategy of organic growth. In addition Luminance relies on its employees to service its customers and add new customers. Failure to continue to attract, train and retain such may adversely affect the group’s operating performance and financial results. Technology and product The group’s ability to penetrate its target market and continue to grow is based on the effectiveness of its products in assisting legal and other professionals. The Directors believe that Luminance’s legal AI co-pilot gives it a market advantage and leadership position. The market is rapidly developing and the success of the group therefore depends on its continued ability to lead the market. If it fails to maintain this leadership position or fails to invest appropriately, its product development is not effective or its technology advancements are outpaced by the advancements of others, its business and operating results could be affected. Foreign exchange – translation risk Material changes in the strength of the GBP against the functional currencies of the group could have an effect on the reported GBP profit in the financial statements. Data security The group works with some of the world’s leading law firms and blue chip corporates which are highly security conscious, including handling their confidential, sensitive and personal data. Failure to handle this data properly could expose the group to reputational risk and penalties. The company implements security policies and has a dedicated Security Advisory Board in an effort to mitigate this risk.
Liquidity risk
Prudent liquidity risk management involves maintaining sufficient cash and marketable securities to meet obligations when due and to close out market positions. The Company received additional funding in April 2023 and continues to monitor revenues and expenditure to meet liquidity requirements. Credit risk The principal credit risk relates to trade receivables. The Company seeks to deal with trading entities where the risk of result is low and reviews payment terms based on an assessment of credit risk relating to the customer or partner.
On the back of growth in subscription sales, in particular in the Corporate product, the pipeline of potential new customers has grown and customer interest in the group’s technology and products is consistent with achieving the growth and operating objectives of management and Directors.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
This report was approved by the board on 14 November 2023 and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The directors present their report and the financial statements for the year ended 31 December 2022.
The directors who served during the year were:
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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LUMINANCE TECHNOLOGIES LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
Details of the Group's financial risk management objectives and policies, including its use of financial instruments and the key risks of which it is exposed are included in the strategic report. Details of the Group's overseas operations, and research and development activities are also included in the srategic report.
The convertible loans per note 17 were covered into 1,489,968 C Ordinary shares of £0.01 each on 17 April 2023.
The Company also issued a further 307,758 C Ordinary shares of £0.01 each for £5,001,067.50 on 17 April 2023. The C Ordinary shares carry full voting rights, entitlement to dividends and a right to distributions after repayment of the capital of the A Ordinary shares shareholders.
The auditor, Scrutton Bland LLP, transferred part of their business to a newly incorporated limited liability partnership, SB Audit LLP, on 1 April 2023. Accordingly, Scrutton Bland LLP formally resigned as the Company's auditor with the Directors duly appointing SB Audit LLP to fill the vacancy arising.
The auditor, SB Audit LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LUMINANCE TECHNOLOGIES LTD
We have audited the financial statements of Luminance Technologies Ltd (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2022, which comprise the Group Statement of Comprehensive Income, the Group and Company Balance Sheets, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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LUMINANCE TECHNOLOGIES LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LUMINANCE TECHNOLOGIES LTD (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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LUMINANCE TECHNOLOGIES LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LUMINANCE TECHNOLOGIES LTD (CONTINUED)
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LUMINANCE TECHNOLOGIES LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LUMINANCE TECHNOLOGIES LTD (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks applicable to the Company and the industry in which it operates. We determined that the the following laws and regulations were most significant: • Those laws and regulations considered to have a direct effect on the financial statements including United Kingdom Accounting Standards, Companies Act 2006 and the relevant tax compliance regulations in the jurisdictions in which the Company operates. • Those laws and regulations considered to have an indirect effect on the financial statements including those relating to employment matters and data security and protection. Audit procedures were undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) and comprised of: • We obtained an understanding of how the Company is complying with those legal and regulatory frameworks by making inquiries of management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of board minutes; • We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or whether they had any knowledge of actual, suspected or alleged fraud. We corroborated this through our review of legal and professional fees incurred during the year; • We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: • identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud; • challenging assumptions and judgements made by management in making its significant accounting estimates; • identifying and testing journal entries, in particular any large or unusual journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements; and • assessing the extent of compliance with certain significant laws and regulations that may have an effect on the determination of the amounts and disclosures in the financial statements; and • We communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. • It is the audit partner's assessment that the audit team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations.
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LUMINANCE TECHNOLOGIES LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LUMINANCE TECHNOLOGIES LTD (CONTINUED)
• The Company's management has not noted any matters of non-compliance with laws and regulations or fraud that were communicated with the audit team.
• We completed audit procedures to conclude on the compliance of disclosures in the Annual Report and financial statements with applicable financial reporting requirements. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
The group comparatives have not been audited. The parent company comparatives have been audited. This is the first year that the group has prepared consolidated financial statements.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
Fitzroy House
Crown Street
Suffolk
IP1 3LG
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
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CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2022
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CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 24 to 44 form part of these financial statements.
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COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022
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COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 24 to 44 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
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CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2022
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Luminance Technologies Ltd is a private company limited by shares and incorporated in England and Wales. Registered number 09857705. Its registered office is located at Nine Hills Road, Cambridge, CB2 1GE. The principal place of business is 6 Duke Street St James's, London, SW1Y 6BN.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The parent company is included in the consolidated financial statements and is considered to be a qualifying entity under FRS 102 paragraphs 1.8 to 1.12. The disclosure exemptions from preparing a separate parent company statement of cash flows and making certain disclosures in respect of financial instruments have been applied.
The following principal accounting policies have been applied:
The Directors have considered a period of at least one year from the date these financial statements were approved and authorised in assessing the going concern basis of preparation of the Group's financial statements. They have reviewed forecasts and considered the wider business environment. They believe that the Group will have sufficient cash available to continue to trade and to settle its liabilities and other obligations as they fall due for the foreseeable future, being a period of at least 12 months from the date of approval of these financial statements. On this basis, the Directors believe the going concern basis of preparation to be appropriate.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
The Company has entered into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans to related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The Parent Company is included in the consolidated financial statements, and is considered to be a qualifying entity under FRS 102 paragraphs 1.8 to 1.12. The disclosure exemption from preparing a separate Parent Company statement of cash flows has been applied. Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
The key judgement area impacting the financial statements is the directors' assessment regarding going concern and is discussed in note 2.2. The key sources of estimation uncertainty affecting the financial statement are the measurement of the share based payment expense and the measurement of the liability component of the convertible debt. They key estimates made as part of the determination of the share based payment expense are the fair value of the options when they were granted, and the length of the vesting period. The key estimate made as part of the determination of the liability component is the market rate of interest that would be payable on a similar debt that does not include a conversion option.
Turnover in the current year and the prior year is attributable to the principal activity of the Company. All turnover relates to the sale of services.
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
11.Taxation (continued)
On 3 March 2021, the Chancellor of the Exchequer announced that the main rate of corporation tax in the United Kingdom will rise to 25% with effect from 1 April 2023 for companies earning annual taxable profits in excess of £250,000. Companies earning annual taxable profits of £50,000 or less will continue to pay corporation tax at 19% with a marginal rate adjustment for companies earning annual taxable profits between the two levels. Accordingly, all recognised and unrecognised deferred tax assets and liabilities are stated at 25%.
At 31 December 2022, the Company had tax losses amounting to approximately £28.3m (2021 - £17.2m) which are available for offset against future taxable profits. A deferred tax asset of £7.1m (2021 - £4.3m) has not been recognised as the directors consider that it is uncertain that the tax losses will be utilised in the foreseeable future.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
12.Tangible fixed assets (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
In February 2021, the Company secured funding through a convertible loan note agreement with new and existing investors. The loan notes attract interest at 8% per annum, which will be converted into shares upon conversion. The loan notes will mature and convert into shares after 36 months from the date of issue unless an earlier conversion event occurs, or a majority of the lenders request cash repayment by giving 30 days' notice.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
20.Provisions (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Share premium account - includes any premium received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.
Profit and loss account - includes the current and prior year losses. Translation reserve - includes the foreign exchange movements relating to the translation of the overseas subsidiary.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
23.Share-based payments (continued)
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £208,493 (2021 - £130,484). Contributions totalling £57,816 (2021 - £33,051) were payable to the fund at the Balance Sheet date and are included in other creditors.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
The company also issued a further 307,758 C Ordinary shares of £0.01 each for £5,001,067.50 on 17 April 2023. The C Ordinary shares carry full voting rights, entitlement to dividends and a right to distributions after repayment of the capital of the A Ordinary shares shareholders.
As at 31 December 2022, the Company's immediate and ultimate parent undertaking and controlling party was Luminance Holding Limited, a company registered in the British Virgin Islands.
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