Registered number:
08782234
Deontics Limited
Unaudited
Financial statements
Information for filing with the registrar
For the year ended
31 December 2021
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Deontics Limited
Chartered accountants' report to the board of directors on the preparation of the unaudited statutory financial statements of Deontics Limited for the year ended 31 December 2021
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Deontics Limited for the year ended 31 December 2021 which comprise the Balance sheet, the Statement of changes in equity
and the related notes from the Company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com /regulation.
This report is made solely to the Board of directors of Deontics Limited, as a body, in accordance with the terms of our engagement letter dated
12 May 2021. Our work has been undertaken solely
to prepare for your approval the financial statements of Deontics Limited and state those matters that we have agreed to state to the Board of directors of Deontics Limited, as a body, in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Deontics Limited and its Board of directors, as a body, for our work or for this report.
It is your duty to ensure that Deontics Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Deontics Limited. You consider that Deontics Limited is exempt from the statutory audit requirement for the year.
We
have not been instructed to carry out an audit or review of the financial statements of Deontics Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Kreston Reeves LLP
Chartered Accountants
Springfield House
Springfield Road
Horsham
West Sussex
RH12 2RG
25 April 2022
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Deontics Limited
Registered number:
08782234
Balance sheet
As at
31 December 2021
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Net current assets/(liabilities)
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Total assets less current liabilities
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Page 2
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Deontics Limited
Registered number:
08782234
Balance sheet
(continued)
As at
31 December 2021
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
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.
The
financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
................................................
M Lea
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The notes on pages 5 to 11 form part of these financial statements.
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Deontics Limited
Statement of changes in equity
For the year ended
31 December 2021
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Comprehensive income for the year
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Other comprehensive income for the year
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Total comprehensive income for the year
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Shares issued during the year
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Total transactions with owners
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Comprehensive income for the year
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Other comprehensive income for the year
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Total comprehensive income for the year
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Shares issued during the year
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Total transactions with owners
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The notes on pages 5 to 11 form part of these financial statements.
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Page 4
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Deontics Limited
Notes to the financial statements
For the year ended 31 December 2021
Deontics Limited is a private company, limited by share capital, incorporated in England and Wales. The registered office address is Orion House, Upper St. Martin's Lane, London, WC2H 9EA.
The financial statements are presented in sterling and rounded to the nearest £1.
2.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis. Whilst the impact of the Covid-19 virus has been assessed by the directors, so far as reasonably possible, due to its unprecedented impact on the wider economy, it is difficult to evaluate with any certainty the potential outcomes on the company’s trade, its customers and suppliers. However, taking into consideration the UK Government’s response, the support of the directors and shareholders, and the company’s planning, the directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙
the Company has transferred the significant risks and rewards of ownership to the buyer;
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the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙
the amount of revenue can be measured reliably;
∙
it is probable that the Company will receive the consideration due under the transaction; and
∙
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙
the amount of revenue can be measured reliably;
∙
it is probable that the Company will receive the consideration due under the contract;
∙
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙
the costs incurred and the costs to complete the contract can be measured reliably.
Page 5
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Deontics Limited
Notes to the financial statements
For the year ended 31 December 2021
2.
Accounting policies (continued)
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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 accruals 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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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Page 6
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Deontics Limited
Notes to the financial statements
For the year ended 31 December 2021
2.
Accounting policies (continued)
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Development costs are capitalised where all of the following criteria can be demonstrated:
(a) the technical feasiblity of completing the intangible fixed asset
(b) the intention to complete and use or sell the asset
(c) the ability to use or sell the asset
(d) the existence of a market, or if to be used internally, the usefulness of the asset
(e) the availability of adequate technical, financial and other resources to complete the asset
(f) the cost of the asset can be measured reliably
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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.
Short-term debtors are measured at transaction price, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Page 7
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Deontics Limited
Notes to the financial statements
For the year ended 31 December 2021
2.
Accounting policies (continued)
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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The average monthly number of employees, including directors, during the year was
11
(2020 -
8
)
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Charge for the year on owned assets
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Page 8
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Deontics Limited
Notes to the financial statements
For the year ended 31 December 2021
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Charge for the year on owned assets
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Prepayments and accrued income
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Page 9
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Deontics Limited
Notes to the financial statements
For the year ended 31 December 2021
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Covertible loan notes
a) In 2018 the company resolved to create up to a maximum nominal amount of £1,000,000 zero rate convertible redeemable loan notes.
Any or all of the notes held by a noteholder which remain outstanding at the conversion date may be converted into shares by the noteholder. In the case of an Issuer Notice the shares shall be converted at a rate of one ordinary share for £4.15 of nominal value of notes. In the case of a Noteholder Notice, which is not a follow on notice, the shares shall be converted at a rate of £11.03 of nominal value of notes. No interest shall be payable in respect of the notes.
During the year, convertible loan notes totalling to £189,856 were converted to equity.
At the year end, convertible loan notes in issue totalled £Nil (2020 - £189,856)..
b) Under a convertible loan agreement dated 30 July 2020 the company received £300,000 from UK FF Nominees Ltd. (The Future Fund). Matched funding of £300,000 was also received as a convertible loan. Interest is charged on the loan notes at a rate of 8% per annum.
During the year, £48,000 (2020 - £19,331) interest was accrued and added to the convertible loan balance within creditors.
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Authorised, allotted, called up and fully paid
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10,739,170
(2020 -
4,459,385
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Ordinary
shares of £
0.001000
each
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85,915
(2020 -
85,915
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Ordinary A
shares of £
0.000001
each
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During the year 6,279,785 £0.001 Ordinary shares were issued for an aggregate value of £1,698,889.
Page 10
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Deontics Limited
Notes to the financial statements
For the year ended 31 December 2021
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £11,363 (2020 - £11,162).
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