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Unaudited Financial Statements for the Year Ended 31 December 2020 |
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Electroneum Ltd |
REGISTERED NUMBER:
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Unaudited Financial Statements for the Year Ended 31 December 2020 |
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for |
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Electroneum Ltd |
Electroneum Ltd (Registered number: 10845797) |
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Contents of the Financial Statements |
for the Year Ended 31 December 2020 |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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Electroneum Ltd |
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Company Information |
for the Year Ended 31 December 2020 |
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DIRECTOR: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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ACCOUNTANTS: |
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51 The Stream |
Ditton |
Aylesford |
Kent |
ME20 6AG |
Electroneum Ltd (Registered number: 10845797) |
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Balance Sheet |
31 December 2020 |
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31.12.20 | 31.12.19 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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Tangible assets | 5 |
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CURRENT ASSETS |
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 LIABILITIES | ( |
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TOTAL ASSETS LESS CURRENT LIABILITIES |
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CAPITAL AND RESERVES |
Called up share capital |
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The director acknowledges his responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | 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 director and authorised for issue on
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Electroneum Ltd (Registered number: 10845797) |
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Notes to the Financial Statements |
for the Year Ended 31 December 2020 |
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1. | STATUTORY INFORMATION |
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Electroneum Ltd is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Although the business has been impacted by the COVID-19 lockdown regulations both prior to and since the balance sheet date, it has continued to operate, albeit in a different manner, in compliance with the relevant regulations. The director therefore considers it appropriate to continue to prepare the financial statements on a going concern basis. |
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Revenue recognition |
Revenue, including consideration received from the Initial Coin Offering in 2017, is recognised in accordance with the applicable Financial Reporting Standard, FRS 102 23.16. |
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Where third parties are issued with ETN in exchange for goods or services, the accounting treatment will be determined by assessing whether the nature of the goods or services received by the Company meet the criteria to be capitalised under FRS102. If that criteria is not meet, the costs incurred will be expensed. |
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The amount at which to record the costs will reflect the fair value of the goods or services if these can be reliably measured. In the absence of such measurement for consideration made in ETN, BTC or ETH, the costs will be recorded with reference to the relevant daily closing price on the CoinMarketCap website. |
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Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
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Current intangible assets |
The Bitcoin ("BTC") and Ethereum ("ETH") cryptocurrencies received by the Company as consideration for the ETN sold in the Initial Coin Offering in 2017 is classed as a current intangible asset as it does not meet the strict criteria to be classified either as cash, cash equivalent, property, plant and equipment, a financial instrument or inventory. The BTC and ETH is held at cost, less accumulated amortisation (if any) and impairment review adjustments in accordance with Financial Reporting Standard FRS102 18.18A. |
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The BTC and ETH held by the Company are presented and disclosed as current assets in accordance with paragraph 1A(1) of Schedule 1 to the Regulations and FRS 102 Glossary (AMD 55) on the basis that the BTC and ETH held by the Company are not representative of non-current assets. |
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The BTC and ETH reserves are used as "quasi cash" for working capital purposes, being exchanged for fiat currencies or for goods and services. |
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Tangible fixed assets |
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Plant and machinery etc | - |
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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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Electroneum Ltd (Registered number: 10845797) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
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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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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 operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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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 |
Other |
intangible |
assets |
£ |
COST |
At 1 January 2020 |
and 31 December 2020 |
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AMORTISATION |
At 1 January 2020 |
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Charge for year |
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At 31 December 2020 |
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NET BOOK VALUE |
At 31 December 2020 |
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At 31 December 2019 |
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Electroneum Ltd (Registered number: 10845797) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
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5. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
etc |
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COST |
At 1 January 2020 |
and 31 December 2020 |
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DEPRECIATION |
At 1 January 2020 |
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Charge for year |
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At 31 December 2020 |
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NET BOOK VALUE |
At 31 December 2020 |
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At 31 December 2019 |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.20 | 31.12.19 |
£ | £ |
Trade debtors |
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Amounts owed by group undertakings |
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Other debtors |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.20 | 31.12.19 |
£ | £ |
Trade creditors |
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Taxation and social security |
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Other creditors |
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8. | CURRENT INTANGIBLE ASSETS |
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Included within the heading of Other Debtors is the sterling equivalent, at historic cost, of BTC and ETH held by the Company. At the balance sheet date, this totals £18,748,929 (2019: £21,777,074). |
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9. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
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At the balance sheet date, R J Ells, Director and Chief Executive, was owed £3,924 (2018: £4,804) for costs incurred on behalf of the Company. |
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10. | ULTIMATE CONTROLLING PARTY |
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The controlling party is Red Cube Advertising Ltd. |
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The ultimate controlling party is
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