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REGISTERED NUMBER: 08973262 (England and Wales)




FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

FOR

MEDHERANT LIMITED

MEDHERANT LIMITED (REGISTERED NUMBER: 08973262)






CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 31 March 2022




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


MEDHERANT LIMITED

COMPANY INFORMATION
for the year ended 31 March 2022







DIRECTORS: Professor D M Haddleton
Mercia Fund Management (Nominees) Limited
Dr K T Cunningham
Dr W J E Burt
A McLean





SECRETARY: J Robson





REGISTERED OFFICE: The Venture Centre
University Of Warwick Science Park
Sir William Lyons Road
Coventry
West Midlands
CV4 7EZ





REGISTERED NUMBER: 08973262 (England and Wales)





AUDITORS: Luckmans Duckett Parker Limited
Chartered Accountants
Statutory Auditors
1110 Elliott Court
Herald Avenue
Coventry Business Park
Coventry
West Midlands
CV5 6UB

MEDHERANT LIMITED (REGISTERED NUMBER: 08973262)

BALANCE SHEET
31 March 2022

2022 2021
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 192,540 289,395
Tangible assets 5 138,789 177,535
331,329 466,930

CURRENT ASSETS
Debtors 6 457,185 700,293
Cash at bank and in hand 1,483,722 1,919,088
1,940,907 2,619,381
CREDITORS
Amounts falling due within one year 7 2,087,354 2,466,791
NET CURRENT (LIABILITIES)/ASSETS (146,447 ) 152,590
TOTAL ASSETS LESS CURRENT
LIABILITIES

184,882

619,520

CREDITORS
Amounts falling due after more than one
year

8

-

2,800,000
NET ASSETS/(LIABILITIES) 184,882 (2,180,480 )

CAPITAL AND RESERVES
Called up share capital 10 700 543
Share premium 11,073,283 7,068,206
Share option reserve 8,855 8,855
Capital contribution 121,933 121,933
Retained earnings (11,019,889 ) (9,380,017 )
SHAREHOLDERS' FUNDS 184,882 (2,180,480 )

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 15 August 2022 and were signed on its behalf by:





Dr W J E Burt - Director


MEDHERANT LIMITED (REGISTERED NUMBER: 08973262)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2022

1. STATUTORY INFORMATION

Medherant Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared on the going concern basis, which assumes that the company will continue in operational existence for the foreseeable future. Due to the nature of scientific research the company continues to make operating losses and is therefore dependant on securing equity investment and generating income from feasibility studies and development collaborations to continue to fund its operations.

The company has a clear plan to develop a lead product for menopause hormone therapy. It has a detailed business plan covering the next 5 years, showing the time, cost, and resources required to develop the products through to registration and, in parallel, seek commercial partners to bring it to market. The company has obtained scientific advice from MHRA for the development and registration pathway in the UK for this product. It is anticipated that a First-In-Human clinical trial will be conducted in 2023.

In addition, the Company will undertake development collaborations with partners to develop transdermal patch products for them. A collaboration with a leading global pharmaceutical company is in a final feasibility stage, we anticipate moving onto a full development programme in 2022. In these collaborations the partner will cover the development costs in the short/medium term and could give rise to a royalty or product supply revenue stream in the medium/long term.

The company is expected to require additional investment for the next 3-5 years, until the point that significant revenue is being generated from licensing transactions or commercial product sales. In May 2021, the company closed a £1m funding round from certain existing shareholders and management and converted £2.8m of debt, plus accrued interest, into equity in the company. In 2022, the company needs to raise further funding to progress the development of its lead menopause hormone therapy product. In the Board's opinion, the company has a reasonable prospect of raising the necessary funding, but has contingency plans to maintain operations if funding or development project revenue is delayed. The Board may reduce the rate of external development expenditure and ensure that the company's operations are scaled appropriately.

In the opinion of the Directors the Company has or will have sufficient funding to continue as a going concern for at least 12 months from the date of approval of the financial statements. Should the company be unable to continue trading for whatever reason, adjustments would have to be made to reduce the value of assets to their recoverable amounts and to provide for any further liabilities which might arise.

These financial statements do not reflect any such adjustments and have been prepared on the going concern basis.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Patent & trademarks
The costs incurred in filing, prosecuting and maintaining patent applications, patents and trade marks are measured at cost and capitalised as intangible fixed assets. The intangible fixed assets are then amortised over 20 years for patents and 10 years for trademarks, from the date of application or registration respectively.

MEDHERANT LIMITED (REGISTERED NUMBER: 08973262)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2022

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is charged at the following rates to reflect the estimated useful life of the assets.

Plant and machinery - 20% on cost per annum
Fixtures and fittings - 20% on cost per annum
Computer equipment - 33% on cost per annum

Tangible fixed assets are capitalised at their initial cost of bringing the asset into useable condition.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Share premium
It is the policy of the company not to deduct the costs of share funding rounds from share premium reserves. Share premium represents the cash paid above the nominal value of the shares issued.

Share based payments
The company provides equity settled share based payments to employees where it receives services from the employees in exchange for its own equity instruments by way of share options.

These share options are valued at fair value using a share option valuation methodology such as an option pricing model. This model uses the weighted average share price, the exercise price, expected volatility in the share price, the option life and the risk free interest rate.

The fair value of the share options granted are recognised as a cost from the date of grant of the options over the vesting period of the options granted.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme or employee's Self-Invested Personal Pension are charged to profit or loss in the period to which they relate.

MEDHERANT LIMITED (REGISTERED NUMBER: 08973262)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2022

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 18 (2021 - 18 ) .

4. INTANGIBLE FIXED ASSETS
Patents
and
licences Trademarks Totals
£    £    £   
COST
At 1 April 2021 326,071 5,269 331,340
Additions 44,134 - 44,134
At 31 March 2022 370,205 5,269 375,474
AMORTISATION
At 1 April 2021 40,891 1,054 41,945
Amortisation for year 18,510 527 19,037
Impairments 121,952 - 121,952
At 31 March 2022 181,353 1,581 182,934
NET BOOK VALUE
At 31 March 2022 188,852 3,688 192,540
At 31 March 2021 285,180 4,215 289,395

5. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Computer
machinery fittings equipment Totals
£    £    £    £   
COST
At 1 April 2021 441,024 15,823 22,830 479,677
Additions 45,503 - 5,905 51,408
Disposals (9,087 ) - - (9,087 )
At 31 March 2022 477,440 15,823 28,735 521,998
DEPRECIATION
At 1 April 2021 269,489 11,843 20,810 302,142
Charge for year 79,833 2,150 2,567 84,550
Eliminated on disposal (3,483 ) - - (3,483 )
At 31 March 2022 345,839 13,993 23,377 383,209
NET BOOK VALUE
At 31 March 2022 131,601 1,830 5,358 138,789
At 31 March 2021 171,535 3,980 2,020 177,535

MEDHERANT LIMITED (REGISTERED NUMBER: 08973262)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2022

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£    £   
Trade debtors 55,200 86,791
Other debtors 26,364 58,389
Tax 365,281 553,879
Prepayments 10,340 1,234
457,185 700,293

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£    £   
Convertible loan 1,525,003 1,540,003
Trade creditors 47,719 363,967
Social security and other taxes 34,439 40,051
Other creditors 9,945 1,007
Deferred income 7,500 -
Accrued expenses 462,748 521,763
2,087,354 2,466,791

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2022 2021
£    £   
Convertible loan - 2,800,000

9. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2022 2021
£    £   
Within one year 41,098 41,098
Between one and five years - 41,098
41,098 82,196

MEDHERANT LIMITED (REGISTERED NUMBER: 08973262)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2022

10. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2022 2021
value: £ £
26,034 Ordinary 1p 260 260
7,907 A Ordinary 1p 79 79
35,292 B Ordinary 1p 353 204
787 C Ordinary 1p 8 -
700 543

The following shares were issued during the year:

14,897 Ordinary B shares of 1p for cash of £3,768,991.
787 Ordinary C shares of 1p for cash of £236,092.

On 12th May 2021, the Convertible loan of £2.8m (excl. interest) with an owner holding a participating interest in the company and the British Business Bank's Future Fund from June-20 converted into equity.

11. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Mark Spafford (Senior Statutory Auditor)
for and on behalf of Luckmans Duckett Parker Limited

12. RELATED PARTY DISCLOSURES

During the year, the company paid professional and consultancy fees to its directors of £16,026 (2021: £15,263).

During the year, the company paid professional fees of £82,426 (2021: £99,500) to owners holding a participating interest in the company.