REGISTERED NUMBER: |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2022 |
FOR |
MEDHERANT LIMITED |
REGISTERED NUMBER: |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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 |
Tangible assets | 5 |
CURRENT ASSETS |
Debtors | 6 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
8 |
NET ASSETS/(LIABILITIES) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 10 |
Share premium |
Share option reserve |
Capital contribution |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
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 |
MEDHERANT LIMITED (REGISTERED NUMBER: 08973262) |
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 March 2022 |
1. | STATUTORY INFORMATION |
Medherant Limited is a |
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 |
4. | INTANGIBLE FIXED ASSETS |
Patents |
and |
licences | Trademarks | Totals |
£ | £ | £ |
COST |
At 1 April 2021 |
Additions |
At 31 March 2022 |
AMORTISATION |
At 1 April 2021 |
Amortisation for year |
Impairments |
At 31 March 2022 |
NET BOOK VALUE |
At 31 March 2022 |
At 31 March 2021 |
5. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2021 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 March 2022 |
DEPRECIATION |
At 1 April 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 March 2022 |
NET BOOK VALUE |
At 31 March 2022 |
At 31 March 2021 |
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 |
Other debtors |
Tax |
Prepayments |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Convertible loan |
Trade creditors |
Social security and other taxes |
Other creditors |
Deferred income |
Accrued expenses |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2022 | 2021 |
£ | £ |
Convertible loan |
9. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
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. |
for and on behalf of |
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. |