Company Registration No. SC630021 (Scotland)
We Are Pawprint Limited
Unaudited financial statements
for the year ended 31 December 2021
Pages for filing with the Registrar
We Are Pawprint Limited
Contents
Page
Statement of financial position
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 11
We Are Pawprint Limited
Statement of financial position
As at 31 December 2021
31 December 2021
Page 1
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
3
33,238
9,337
Current assets
Debtors
4
208,903
190,014
Cash at bank and in hand
654,853
754,858
863,756
944,872
Creditors: amounts falling due within one year
5
(832,920)
(712,876)
Net current assets
30,836
231,996
Total assets less current liabilities
64,074
241,333
Capital and reserves
Called up share capital
7
19
15
Share premium account
2,181,548
999,425
Equity reserve
9,886
9,886
Profit and loss reserves
(2,127,379)
(767,993)
Total equity
64,074
241,333
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
For the financial year ended 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
We Are Pawprint Limited
Statement of financial position (continued)
As at 31 December 2021
31 December 2021
Page 2
The financial statements were approved by the board of directors and authorised for issue on 23 September 2022 and are signed on its behalf by:
Christian Arno
Director
Company Registration No. SC630021
We Are Pawprint Limited
Statement of changes in equity
For the year ended 31 December 2021
Page 3
Share capital
Share premium account
Equity reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 June 2020
13
579,987
(330,797)
249,203
Period ended 31 December 2020:
Loss and total comprehensive income for the period
-
-
-
(437,196)
(437,196)
Issue of share capital
7
2
419,438
-
-
419,440
Other movements
-
9,886
-
9,886
Balance at 31 December 2020
15
999,425
9,886
(767,993)
241,333
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
-
-
(1,359,386)
(1,359,386)
Issue of share capital
7
4
1,182,123
-
-
1,182,127
Balance at 31 December 2021
19
2,181,548
9,886
(2,127,379)
64,074
We Are Pawprint Limited
Notes to the financial statements
For the year ended 31 December 2021
Page 4
1
Accounting policies
Company information
We Are Pawprint Limited is a
private
company
limited by shares
incorporated in
Scotland
.
The registered office is
We Work 80, George Street, Edinburgh, EH2 3BU.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable
for
services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
1.3
Research and development expenditure
Research
and development
expenditure is written off against profits in the year in which it is incurred.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
20% straight line
IT equipment
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
We Are Pawprint Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies (continued)
Page 5
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
We Are Pawprint Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies (continued)
Page 6
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
income statement
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.10
Share-based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the
Black-Scholes
model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
We Are Pawprint Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies (continued)
Page 7
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
1.11
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
1.12
The directors are aware of the cash burn which is as expected in the early stages of the company's business plan. However, they are of the view that the company is a going concern based on the cash held at the balance sheet date together with the fund raisings since the year end.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
27
13
We Are Pawprint Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
Page 8
3
Tangible fixed assets
Fixtures and fittings
IT equipment
Total
£
£
£
Cost
At 1 January 2021
10,612
10,612
Additions
634
27,925
28,559
At 31 December 2021
634
38,537
39,171
Depreciation and impairment
At 1 January 2021
1,275
1,275
Depreciation charged in the year
22
4,636
4,658
At 31 December 2021
22
5,911
5,933
Carrying amount
At 31 December 2021
612
32,626
33,238
At 31 December 2020
9,337
9,337
4
Debtors
December
December
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
23,400
57,965
Corporation tax recoverable
152,390
130,920
Other debtors
33,113
1,129
208,903
190,014
5
Creditors: amounts falling due within one year
December
December
2021
2020
£
£
Trade creditors
27,627
1,102
Taxation and social security
109,765
27,202
Other creditors
695,528
684,572
832,920
712,876
We Are Pawprint Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
Page 9
6
Share-based payment transactions
Details of the employee share option plan of the Company
The Company has a share option scheme for employees and consultants. All options are exercisable only upon an exit event.
The following share based payment arrangements were in existance during the period-ended 31 December 2021.
Grant date
Number
Expiry date
Exercise price
Fair value (per share)
16/10/20
9,350,000
15/10/30
£0.00388
£0.00114
All options vested on their date of grant. If an employee or consultant ceased to be associated with the Company, their options lapsed. If an exit event does not occur before the expiry date, the options lapse.
Movements in share options during the year
Period ended 31 December 2021
Period ended 31 December 2020
Number of options
Weighted average exercise price
Number of options
Weighted average exercise price
Balance at the beginning of the period
9,350,000
£0.00232
-
-
Granted during the period
-
-
9,350,000
£0.00232
Lapsed during the period
-
-
-
-
Balance at the end of the period
9,350,000
£0.00232
9,350,000
£0.00232
Share options exercised during the year
There were no share options exercised during the period-ended 31 December 2021, nor in the prior period.
We Are Pawprint Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
6
Share-based payment transactions (continued)
Page 10
Share options outstanding at the end of the period
The share options outstanding at the end of the period had a weighted average exercise price and a weighted average remaining contractual life as shown below:
Period ended 31 December 2021
Period ended 31 December 2020
Weighted average exercise price
£0.00232
£0.00232
Weighted average remaining contractual life (years)
8.80
9.80
The charge to the statement of comprehensive income of £0 (Dec 2020: £9,886) represents the net allocation of cost for the share options granted and lapsed during the year, based on the Directors' estimate of the number of share options expected to be exercised in due course.
The fair value of the Employment Options is estimated at the date of the grant using a Black-Scholes option pricing model. The following assumptions have been sued in calulating the fair value of the share options.
December 2021
December 2020
Valuation method
Black-Scholes
Black-Scholes
Risk free interest rate
1.96%
0.14%
Expected life (average years)
3
3
Expected volatility
40%
40%
Dividend yield
0%
0%
The risk free interest rate is based on the government gilt rate that is commensurate with the average expected life of the option. The expected life of the options is the expected average point at which an option becomes exercisable. The expected volatility is based on historical volatility of the share price of the Company and of quoted comparable companies over the most recent period at the date of the grant that is commensurate with the average expected life of the option. The weighted average share price used in each calculation was equal to the option exercise price.
We Are Pawprint Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
Page 11
7
Called up share capital
December
December
2021
2020
£
£
Ordinary share capital
Issued and fully paid
149,972,000 Ordinary shares of £0.0000001 each
-
15
189,376,237 Ordinary shares of £0.0000001 each
19
-
On 3 February 2021 39,404,237 ordinary shares of £0.0000001 were issued.
8
Events after the reporting date
Advance subscription agreements were signed agreeing to subscribe for 19,982,959 ordinary shares of £0.0000001 for consideration of £844,280. These agreements were converted into shares on 23 May 2022 at longstop value of £0.04225.
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CCH Software
CCH Accounts Production 2022.100
No description of principal activity
Christian Arno
Ross Macnay
Mark McCafferty
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