Company registration number 11065201 (England and Wales)
AWAKEN INTELLIGENCE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
AWAKEN INTELLIGENCE LIMITED
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 10
AWAKEN INTELLIGENCE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
as restated
Notes
£
£
£
£
Non-current assets
Intangible assets
4
202,960
240,522
Property, plant and equipment
5
11,025
17,638
213,985
258,160
Current assets
Trade and other receivables
6
846,464
718,695
Cash and cash equivalents
59,940
231,626
906,404
950,321
Current liabilities
7
(1,785,360)
(1,525,502)
Net current liabilities
(878,956)
(575,181)
Total assets less current liabilities
(664,971)
(317,021)
Non-current liabilities
8
(206,667)
Net liabilities
(871,638)
(317,021)
Equity
Called up share capital
10
1,115
1,093
Share premium account
999,271
374,293
Retained earnings
(1,872,024)
(692,407)
Total equity
(871,638)
(317,021)
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 2022 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.
The 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.
AWAKEN INTELLIGENCE LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2022
31 December 2022
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 9 February 2023 and are signed on its behalf by:
Mr C A Robinson
Director
Company Registration No. 11065201
AWAKEN INTELLIGENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
1
Accounting policies
Company information
Awaken Intelligence Limited is a private company limited by shares incorporated in England and Wales. The registered office is Old Linen Court, 83-85 Shambles Street, Barnsley, S70 2SB.
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 amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
As at 31 December 20true21, the company had net liabilities of £871,638.The company have received the continuing support of its creditors and shareholders.
On this basis, the director considers it appropriate to prepare the financial statements on the going concern basis.
1.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
AWAKEN INTELLIGENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
Amortisation 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:
Software
3 years straight line
Customer relationships
10 years straight line
1.5
Property, plant and equipment
Property, plant and equipment 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:
Plant and equipment
4 years straight line
Computers
1 year 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.
1.6
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
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.
AWAKEN INTELLIGENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -
1.8
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 trade and other receivables and cash and bank balances, 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 trade and other payables, 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 payments 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 payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.10
Taxation
The tax credit represents the sum of the tax reclaimed as R & D losses surrendered during the period at 14.5%.
AWAKEN INTELLIGENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 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. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.
1.11
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 non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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 market value. 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.
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.
Thw company has entered into share option plans fo eligible employees. These are accounted for under section 26 of FRS102 Share- based payments.
AWAKEN INTELLIGENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 7 -
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
29
30
4
Intangible fixed assets
Other
Customer relationships
Total
£
£
£
Cost
At 1 January 2022 and 31 December 2022 as restated
20,166
256,400
276,566
Amortisation and impairment
At 1 January 2022
12,834
23,210
36,044
Amortisation charged for the year
7,332
30,230
37,562
At 31 December 2022
20,166
53,440
73,606
Carrying amount
At 31 December 2022
202,960
202,960
At 31 December 2021 as restated
7,332
233,190
240,522
AWAKEN INTELLIGENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
5
Property, plant and equipment
Plant and equipment
Computers
Total
£
£
£
Cost
At 1 January 2022
18,150
44,722
62,872
Additions
7,349
7,349
At 31 December 2022
18,150
52,071
70,221
Depreciation and impairment
At 1 January 2022
6,297
38,937
45,234
Depreciation charged in the year
4,538
9,424
13,962
At 31 December 2022
10,835
48,361
59,196
Carrying amount
At 31 December 2022
7,315
3,710
11,025
At 31 December 2021
11,853
5,785
17,638
6
Trade and other receivables
2022
2021
as restated
Amounts falling due within one year:
£
£
Trade receivables
386,852
358,339
Corporation tax recoverable
385,273
277,787
Other receivables
74,339
82,569
846,464
718,695
7
Current liabilities
2022
2021
as restated
£
£
Trade payables
55,477
57,875
Taxation and social security
79,553
89,572
Other payables
1,650,330
1,378,055
1,785,360
1,525,502
AWAKEN INTELLIGENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
8
Non-current liabilities
2022
2021
£
£
Other payables
206,667
9
Share-based payment transactions
Liabilities and expenses
On 30 June 2021 the company granted employees share options in an approved EMI scheme which would be vest upon an exit sale. The total number of shares granted were 3,465,000 ordinary E shares with a nominal value of £0.000012195. At the year end 995,000 had been forfeited. The exercise price of the shares range from £0.10 to £0.02304.
10
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 0.0012195p each
92,885,100
89,626,000
1,115
1,093
Between 17 October and 24 November 2022 the company allotted 3,259,100 ordinary £0.000012195 shares at a price of £0.19177 each for a total sum of £625,000.
11
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2022
2021
2022
2021
£
£
£
£
Other related parties
219,638
1,380,804
261,624
-
2022
2021
Amounts due to related parties
£
£
Other related parties
1,534,837
757,867
AWAKEN INTELLIGENCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
12
Prior period adjustment
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in loss for the previous financial period
2021
£
Adjustments to prior year
Intangible Assets
78,140
Current Assets
267,496
Current Liabilities
(345,636)
Total adjustments
-
Loss as previously reported
(197,740)
Loss as adjusted
(197,740)
2022-12-312022-01-01false09 February 2023CCH SoftwareCCH Accounts Production 2023.200No description of principal activityMr G ErasmusMr S BlackMr C A RobinsonGBAC Limited110652012022-01-012022-12-31110652012022-12-31110652012021-12-3111065201core:IntangibleAssetsOtherThanGoodwill2022-12-3111065201core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-12-3111065201core:IntangibleAssetsOtherThanGoodwill2021-12-3111065201core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2021-12-3111065201core:PlantMachinery2022-12-3111065201core:ComputerEquipment2022-12-3111065201core:PlantMachinery2021-12-3111065201core:ComputerEquipment2021-12-3111065201core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3111065201core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3111065201core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3111065201core:Non-currentFinancialInstrumentscore:AfterOneYear2021-12-3111065201core:ShareCapital2022-12-3111065201core:ShareCapital2021-12-3111065201core:SharePremium2022-12-3111065201core:SharePremium2021-12-3111065201core:RetainedEarningsAccumulatedLosses2022-12-3111065201core:RetainedEarningsAccumulatedLosses2021-12-3111065201bus:Director32022-01-012022-12-3111065201core:IntangibleAssetsOtherThanGoodwill2022-01-012022-12-3111065201core:PlantMachinery2022-01-012022-12-3111065201core:ComputerEquipment2022-01-012022-12-31110652012021-01-012021-12-3111065201core:IntangibleAssetsOtherThanGoodwill2021-12-3111065201core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2021-12-31110652012021-12-3111065201core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-01-012022-12-3111065201core:PlantMachinery2021-12-3111065201core:ComputerEquipment2021-12-3111065201core:CurrentFinancialInstruments2022-12-3111065201core:CurrentFinancialInstruments2021-12-3111065201core:WithinOneYear2022-12-3111065201core:WithinOneYear2021-12-3111065201core:Non-currentFinancialInstruments2022-12-3111065201core:Non-currentFinancialInstruments2021-12-3111065201core:OtherRelatedPartiescore:SaleOrPurchaseGoods2022-01-012022-12-3111065201core:OtherRelatedPartiescore:SaleOrPurchaseGoods2021-01-012021-12-3111065201bus:PrivateLimitedCompanyLtd2022-01-012022-12-3111065201bus:SmallCompaniesRegimeForAccounts2022-01-012022-12-3111065201bus:FRS1022022-01-012022-12-3111065201bus:AuditExemptWithAccountantsReport2022-01-012022-12-3111065201bus:Director12022-01-012022-12-3111065201bus:Director22022-01-012022-12-3111065201bus:CompanySecretary12022-01-012022-12-3111065201bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP