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REGISTERED NUMBER: 09343496 (England and Wales)















UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

COTTON MOUTON DIAGNOSTICS LTD

COTTON MOUTON DIAGNOSTICS LTD (REGISTERED NUMBER: 09343496)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4


COTTON MOUTON DIAGNOSTICS LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2021







DIRECTORS: C J Allender
Dr J L Bowen





SECRETARY: C J Allender





REGISTERED OFFICE: 8 Cae Gwyrdd
Greenmeadow Springs
Cardiff
CF15 7AB





REGISTERED NUMBER: 09343496 (England and Wales)





ACCOUNTANTS: Graham Paul Chartered Accountants
5 Ash Tree Court
Woodsy Close
Cardiff Gate Business Park
Cardiff
CF23 8RW

COTTON MOUTON DIAGNOSTICS LTD (REGISTERED NUMBER: 09343496)

BALANCE SHEET
31 DECEMBER 2021

2021 2020
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 - 1,539

CURRENT ASSETS
Stocks 7,640 -
Debtors 5 64,801 60,910
Cash at bank 77,127 1,400
149,568 62,310
CREDITORS
Amounts falling due within one year 6 49,748 36,670
NET CURRENT ASSETS 99,820 25,640
TOTAL ASSETS LESS CURRENT
LIABILITIES

99,820

27,179

CREDITORS
Amounts falling due after more than one
year

7

548,967

178,796
NET LIABILITIES (449,147 ) (151,617 )

CAPITAL AND RESERVES
Called up share capital 9 51,479 1,479
Share premium 10 2,460,423 2,460,423
Retained earnings 10 (2,961,049 ) (2,613,519 )
SHAREHOLDERS' FUNDS (449,147 ) (151,617 )

COTTON MOUTON DIAGNOSTICS LTD (REGISTERED NUMBER: 09343496)

BALANCE SHEET - continued
31 DECEMBER 2021


The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 31 August 2022 and were signed on its behalf by:





Dr J L Bowen - Director


COTTON MOUTON DIAGNOSTICS LTD (REGISTERED NUMBER: 09343496)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021


1. STATUTORY INFORMATION

Cotton Mouton Diagnostics Ltd 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
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The presentation currency is £ sterling and the accounts are rounded to the nearest £.

Going Concern

In determining the appropriate basis of preparation of the financial statements, the directors are required to consider whether the company can continue in operational existence for the foreseeable future.

The Company continues to be in the early stages of commercialising its technology and has, to date, been in the pre revenue phase of its development. Significant investment has been made in research, development and protection of the company's intellectual property with this investment being through both equity and grant funding. Further operating losses are anticipated in the future as this investment continues.

As at 31 December 2021, the Company had a cash balance of £77,127. The Company's cash flow forecasts indicate that further cash funding will be required prior to the end of 2022. The directors believe that the required additional funding will be obtained based on the continuing good technical and commercial progress the Company is making. In the post year end period, significant additional capital has be obtained via further share issues and the company continues to be actively engaged in discussions with potential commercial partners. Therefore, the directors consider it appropriate to prepare the financial statements on the going concern basis.

Turnover
Turnover represents net invoiced sales of products, sundry costs and services, excluding value added tax, except in respect of service contracts where turnover is recognised when the company obtains the right to consideration. Income is recognised upon transfer of products and sundry costs and when and services have been provided to the customer and when the amount can be reliably measured and it is probable that the amount will be received.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Office equipment - 33% on cost
Lab equipment - 33% on cost
Fixtures and fittings - 33% on cost

COTTON MOUTON DIAGNOSTICS LTD (REGISTERED NUMBER: 09343496)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


2. ACCOUNTING POLICIES - continued

Grants
Grants received that relate to revenue and specific projects are recognised in other income over the period in which the related costs are incurred and project carried out. Grants related to expenses and covid-19 support are recognised in other income as the grant becomes receivable. Such grants occur as a re-imbursement for expenses already incurred and as a result of local authority and government covid-19 support measures.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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 relevant, appropriate, significant and material 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.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate.

Financial instruments
Basic financial liabilities are recognised at fair value and accounted for at amortised cost. The finance element of any financial liability is charged to the income statement in the year it relates.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 5 (2020 - 3 ) .

COTTON MOUTON DIAGNOSTICS LTD (REGISTERED NUMBER: 09343496)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


4. TANGIBLE FIXED ASSETS
Fixtures
Office Lab and
equipment equipment fittings Totals
£    £    £    £   
COST
At 1 January 2021
and 31 December 2021 6,537 14,910 42,355 63,802
DEPRECIATION
At 1 January 2021 6,390 14,522 41,351 62,263
Charge for year 147 388 1,004 1,539
At 31 December 2021 6,537 14,910 42,355 63,802
NET BOOK VALUE
At 31 December 2021 - - - -
At 31 December 2020 147 388 1,004 1,539

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Welsh government grant debtor - 14,513
R&D tax credits due 28,709 23,595
VAT recoverable 12,250 3,159
Prepayments 23,842 19,643
64,801 60,910

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Trade creditors 34,151 26,314
Social security and other taxes 5,151 2,023
Pension creditor 1,473 633
Accruals 8,973 7,700
49,748 36,670

COTTON MOUTON DIAGNOSTICS LTD (REGISTERED NUMBER: 09343496)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2021 2020
£    £   
Deferred management debt 128,600 128,600
IUK continuity loan
(due within 5 years) 338,403 -
Floating rate loan notes 2026
(due within 5 years) 51,200 -
IUK continuity loan
(due after 5 years) 30,764 -
Floating rate loan notes 2026
(due after 5 years) - 50,196
548,967 178,796

Amounts falling due in more than five years:

Repayable otherwise than by instalments
Floating rate loan notes 2026
(due after 5 years) - 50,196
- 50,196

Repayable by instalments
IUK continuity loan
(due after 5 years) 30,764 -
30,764 -

The floating rate Loan Notes attract interest at 1.5% plus LIBOR are unsecured and are repayable in full in 2026.

8. SECURED DEBTS

The following secured debts are included within creditors:

2021 2020
£    £   
IUK continuity loan 369,167 -
Deferred management debt 128,600 128,600
497,767 128,600

The deferred management debt has a 9th January 2023 repayment date and is secured by a fixed and floating charge over the company. The IUK continuity loan has a repayment date of April 2027 and is secured by a fixed and floating charge over the company.

COTTON MOUTON DIAGNOSTICS LTD (REGISTERED NUMBER: 09343496)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


9. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number: Class: Nominal Value: 2021 2020
£ £
5,861,160 Ordinary Shares £0.0001 586 586
194,463 B Ordinary Shares £0.0001 19 19
8,741,978 Preference Shares £0.0001 874 874
3,703,704 Preference A Ordinary Shares £0.0135 50,000 -
51,479 1,479

3,703,704 Preference Ordinary A Shares of £0.0135 each were issued at par during the year.

10. RESERVES

Share premium account
The share premium account represents amounts raised on the initial allotment of share capital in excess of the nominal value of the shares issued.

Retained earnings
The retained earnings represents the accumulated profits, losses and distributions of the Company and in the previous year, adjustments required for present value discounting of relevant financial liabilities.

11. COMMITMENTS UNDER OPERATING LEASES

20212020
£ £
Total company commitments as at the balance sheet date69,278131,607

12. RELATED PARTY DISCLOSURES

During the current and previous year, the company was in receipt of an interest free loan from some of its shareholders, (former) directors and key management in the form of deferred management debt. The amount outstanding at the year end and included within creditors falling due after more than one year is £128,600 (2020 - £128,600).

13. POST BALANCE SHEET EVENTS

After the year end, but before the accounts were approved, the following relevant event occurred:

- further shares were issued, resulting in £450,000 of new capital being raised