Transactions with related parties
During the year the company entered into the following transactions with related parties:
During the year Lawbit Limited charged service and licence fees of £363,952 (2018: £608,118) to a company which shares common directors, while the company also paid for certain administration costs on behalf of Lawbit Limited. At the balance sheet date Lawbit Limited owed £306,070 to the related company (2018: £30,074).
During the year Lawbit Limited received management services from a company which shares common directors and was charged £70,081, (2018: £67,333) for these management services. At the balance sheet date Lawbit Limited was owed £97,801 (2018: £53,386) from this related company.
During the previous year the company received a loan from a company in which it owns 50% of the issued share capital. The loan is non-interest bearing and not subject to any specific terms. The amount due to the related company at balance sheet date was £427,802 (2018: £221,228).
Transactions with directors
The company provided a loan to the directors during the period. At 31 May 2019 a total of £306,379 was due to the company (2018: £302,461). The loan is interest free and repayable on demand. It is expected that the loan will be repaid in full in the year to 31 May 2020 by a combination of cash settlement and the assignment of the loan as settlement of future costs for management services.