Registration number:
Lawdeck Limited
for the Year Ended 30 April 2020
Lawdeck Limited
Contents
Company Information |
|
Balance Sheet |
|
Notes to the Unaudited Financial Statements |
Lawdeck Limited
Company Information
Directors |
Mr Olatunde Alegbe Alexander Sukhdev Singh Mann Mooktakim Ahmed |
Registered Number: |
08442448 |
Registered office |
|
Accountants |
|
Lawdeck Limited
(Registration number: 08442448)
Balance Sheet as at 30 April 2020
Note |
2020 |
(As restated) |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
218 |
193 |
|
Share premium reserve |
3,206,023 |
1,952,225 |
|
Profit and loss account |
(2,541,573) |
(925,493) |
|
Total equity |
664,668 |
1,026,925 |
For the financial year ending 30 April 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
|
• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
Lawdeck Limited
(Registration number: 08442448)
Balance Sheet as at 30 April 2020
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
.........................................
Director
Lawdeck Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 April 2020
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Going concern
The directors of the company are constantly assessing the impact of COVID-19. The situation is evolving continuously and it is difficult at this stage to determine with any certainty the impact on the company, its customers, employees and suppliers. The directors are continually reviewing their plans and forecasts and believe that the going concern basis is appropriate in the short term. However, depending on the severity and length of the crisis there is a risk that the company could require further funding or support.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
Lawdeck Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 April 2020
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Office Equipment |
25% Straight line |
Development costs
Costs directly attributable to product development are capitalised as intangible assets only when technical feasibility of the project is demonstrated, there is an intention and ability to complete the development activities and the costs can be measured reliably. Such costs include purchases of materials and services and payroll-related costs of employees directly involved in the project. Research costs are recognised as an expense when incurred.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Development costs |
25% Straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Lawdeck Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 April 2020
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Taxation |
The amount for taxation includes current and prior year (£112,800) Research and Development claims.
Lawdeck Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 April 2020
Intangible assets |
Internally generated software development costs |
Total |
|
Cost or valuation |
||
At 1 May 2019 |
|
|
Additions internally developed |
|
|
At 30 April 2020 |
|
|
Amortisation |
||
At 1 May 2019 |
|
|
Amortisation charge |
|
|
At 30 April 2020 |
|
|
Carrying amount |
||
At 30 April 2020 |
|
|
At 30 April 2019 |
|
|
Following a change in accounting policy adopted in the current period, all development costs are now capitalised. The effect of the change has been applied retrospectively and so represents a change from previous years when development costs were expensed as incurred. See note 12 for further details.
Lawdeck Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 April 2020
Tangible assets |
Office equipment |
Total |
|
Cost or valuation |
||
At 1 May 2019 |
|
|
Additions |
|
|
At 30 April 2020 |
|
|
Depreciation |
||
At 1 May 2019 |
|
|
Charge for the year |
|
|
At 30 April 2020 |
|
|
Carrying amount |
||
At 30 April 2020 |
|
|
At 30 April 2019 |
|
|
Debtors |
2020 |
(As restated) |
|
Prepayments |
|
|
Other debtors |
169,821 |
98,965 |
VAT Control account |
139,632 |
21,205 |
|
|
Prepayments includes £671,429 (2019: £201,429) of advanced payments to Effortless Energy. This has been restated from the profit and loss account in the prior year accounts.
Lawdeck Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 April 2020
Creditors |
Creditors: amounts falling due within one year
2020 |
2019 |
|
Due within one year |
||
Trade creditors |
288,778 |
28,536 |
PAYE and NIC |
107,005 |
34,890 |
Accruals and deferred income |
|
- |
Other creditors |
|
|
|
|
Creditors: amounts falling due after more than one year
Note |
2020 |
2019 |
|
Due after one year |
|||
Loans and borrowings |
|
- |
|
Other non-current financial liabilities |
- |
|
|
1,507,608 |
5,000 |
Non-current borrowings represents convertible loan notes totalling £1.5m, these attract interest at 4% on redemption, administration/liquidation/receivership/insolvency or conversion. They can be converted into equity with a 20% reduction in the strike share price at the time of the next qualifying funding round.
Share capital |
Allotted, called up and fully paid shares
2020 |
2019 |
|||
No. |
£ |
No. |
£ |
|
Ordinary of £0.00001 each |
19,750,316 |
197.50 |
17,283,820 |
172.84 |
Deferred of £0.00100 each |
20,000 |
20.00 |
20,000 |
20.00 |
|
|
|
|
Lawdeck Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 April 2020
Non adjusting events after the financial period |
|
Prior year adjustment |
The accounts have been restated to ensure the correct presentation of amounts paid to Effortless Energy in the year ending 30 April 2019. These now show as amounts paid in advance on the balance sheet, rather than as a cost in the year. The change has resulted in retained losses decreasing by £201,429.
Lawdeck Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 April 2020
Change in accounting policy |
Lawdeck has developed software using Natural Language Processing that interacts with the home through energy and home appliances to combine all utility data and suggest optimal utility providers.
The company has previously expensed all development costs. However, the directors believe they have created an intangible asset which is expected to realise future economic benefits in the form of a future revenue stream and so it is appropriate to capitalise and match the utilisation of that asset against those benefits. The directors believe capitalising the development costs, in line with FRS102 1a Section 18, gives a more accurate view of the investment made by the business and gives a truer and fairer view of the company's financial position.
This change has been applied retrospectively and development expenses from FY16, FY17, FY18 and FY19 have now been capitalised in line with the change in policy.
There is no impact on deferred tax due to the existence of tax losses. A deferred tax asset has not been recognised.
The directors believe the presentation of the intangible assets represents the fair value of those assets at the balance sheet date.
The table below shows the impact on the accounts of the changes in accounting policy and the prior period adjustment:
Loss for the financial year originally reported |
Capitalisation of development costs |
Amortisation charge |
Prior period adjustment |
Restated loss |
NBV of Development costs |
||
2016 |
(250,514) |
112,174 |
- |
(138,340) |
112,174 |
||
2017 |
(297,097) |
184,757 |
(28,044) |
(140,384) |
268,888 |
||
2018 |
(294,040) |
206,004 |
(74,233) |
(162,269) |
400,659 |
||
2019 |
(878,181) |
363,418 |
(125,735) |
201,429 |
(439,069) |
638,342 |