Safetonet Limited 08733316 false 2020-11-01 2021-12-31 2021-12-31 The principal activity of the company is keeping children safe online. Digita Accounts Production Advanced 6.30.9574.0 true true false false true true false false false false false false false false 08733316 2020-11-01 2021-12-31 08733316 2021-12-31 08733316 core:OtherReservesSubtotal 2021-12-31 08733316 core:RetainedEarningsAccumulatedLosses 2021-12-31 08733316 core:ShareCapital 2021-12-31 08733316 core:SharePremium 2021-12-31 08733316 core:CurrentFinancialInstruments 2021-12-31 08733316 core:CurrentFinancialInstruments core:WithinOneYear 2021-12-31 08733316 core:Non-currentFinancialInstruments core:AfterOneYear 2021-12-31 08733316 core:AdditionsToInvestments 2021-12-31 08733316 core:CostValuation 2021-12-31 08733316 core:OfficeEquipment 2021-12-31 08733316 bus:SmallEntities 2020-11-01 2021-12-31 08733316 bus:AuditExemptWithAccountantsReport 2020-11-01 2021-12-31 08733316 bus:FullAccounts 2020-11-01 2021-12-31 08733316 bus:SmallCompaniesRegimeForAccounts 2020-11-01 2021-12-31 08733316 bus:RegisteredOffice 2020-11-01 2021-12-31 08733316 bus:Director1 2020-11-01 2021-12-31 08733316 bus:PrivateLimitedCompanyLtd 2020-11-01 2021-12-31 08733316 core:Goodwill 2020-11-01 2021-12-31 08733316 core:OfficeEquipment 2020-11-01 2021-12-31 08733316 core:Subsidiary1 2020-11-01 2021-12-31 08733316 core:Subsidiary1 1 2020-11-01 2021-12-31 08733316 core:Subsidiary10 2020-11-01 2021-12-31 08733316 core:Subsidiary10 1 2020-11-01 2021-12-31 08733316 core:Subsidiary11 2020-11-01 2021-12-31 08733316 core:Subsidiary11 1 2020-11-01 2021-12-31 08733316 core:Subsidiary2 2020-11-01 2021-12-31 08733316 core:Subsidiary2 1 2020-11-01 2021-12-31 08733316 core:Subsidiary3 2020-11-01 2021-12-31 08733316 core:Subsidiary3 1 2020-11-01 2021-12-31 08733316 core:Subsidiary4 2020-11-01 2021-12-31 08733316 core:Subsidiary4 1 2020-11-01 2021-12-31 08733316 core:Subsidiary5 2020-11-01 2021-12-31 08733316 core:Subsidiary5 1 2020-11-01 2021-12-31 08733316 core:Subsidiary6 2020-11-01 2021-12-31 08733316 core:Subsidiary6 1 2020-11-01 2021-12-31 08733316 core:Subsidiary6 countries:AllCountries 2020-11-01 2021-12-31 08733316 core:Subsidiary7 2020-11-01 2021-12-31 08733316 core:Subsidiary7 1 2020-11-01 2021-12-31 08733316 core:Subsidiary7 countries:AllCountries 2020-11-01 2021-12-31 08733316 core:Subsidiary8 2020-11-01 2021-12-31 08733316 core:Subsidiary8 1 2020-11-01 2021-12-31 08733316 core:Subsidiary9 2020-11-01 2021-12-31 08733316 core:Subsidiary9 1 2020-11-01 2021-12-31 08733316 countries:EnglandWales 2020-11-01 2021-12-31 08733316 2020-10-31 08733316 core:CostValuation 2020-10-31 08733316 core:OfficeEquipment 2020-10-31 08733316 2019-11-01 2020-10-31 08733316 2020-10-31 08733316 core:OtherReservesSubtotal 2020-10-31 08733316 core:RetainedEarningsAccumulatedLosses 2020-10-31 08733316 core:ShareCapital 2020-10-31 08733316 core:SharePremium 2020-10-31 08733316 core:CurrentFinancialInstruments 2020-10-31 08733316 core:CurrentFinancialInstruments core:WithinOneYear 2020-10-31 08733316 core:Non-currentFinancialInstruments core:AfterOneYear 2020-10-31 08733316 core:OfficeEquipment 2020-10-31 08733316 core:Subsidiary1 1 2019-11-01 2020-10-31 08733316 core:Subsidiary10 1 2019-11-01 2020-10-31 08733316 core:Subsidiary11 1 2019-11-01 2020-10-31 08733316 core:Subsidiary2 1 2019-11-01 2020-10-31 08733316 core:Subsidiary3 1 2019-11-01 2020-10-31 08733316 core:Subsidiary4 1 2019-11-01 2020-10-31 08733316 core:Subsidiary5 1 2019-11-01 2020-10-31 08733316 core:Subsidiary6 1 2019-11-01 2020-10-31 08733316 core:Subsidiary7 1 2019-11-01 2020-10-31 08733316 core:Subsidiary8 1 2019-11-01 2020-10-31 08733316 core:Subsidiary9 1 2019-11-01 2020-10-31 iso4217:GBP xbrli:pure

Registration number: 08733316

Safetonet Limited

Annual Report and Unaudited Financial Statements

for the Period from 1 November 2020 to 31 December 2021

 

Safetonet Limited

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 9

 

Safetonet Limited

(Registration number: 08733316)
Balance Sheet as at 31 December 2021

Note

2021
£

2020
£

Fixed assets

 

Tangible assets

4

9,557

28,036

Investments

5

22,167,461

327,716

 

22,177,018

355,752

Current assets

 

Debtors

6

6,307,716

4,798,595

Cash at bank and in hand

 

16,441

1,626,093

 

6,324,157

6,424,688

Creditors: Amounts falling due within one year

7

(4,505,156)

(3,345,133)

Net current assets

 

1,819,001

3,079,555

Total assets less current liabilities

 

23,996,019

3,435,307

Creditors: Amounts falling due after more than one year

7

(40,239)

-

Net assets

 

23,955,780

3,435,307

Capital and reserves

 

Called up share capital

25,822

22,532

Share premium reserve

39,241,543

23,903,531

Other reserves

9,797,878

2,206,105

Profit and loss account

(25,109,463)

(22,696,861)

Shareholders' funds

 

23,955,780

3,435,307

 

Safetonet Limited

(Registration number: 08733316)
Balance Sheet as at 31 December 2021

For the financial period ending 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 13 May 2022 and signed on its behalf by:
 

.........................................
R M Pursey
Director

 

Safetonet Limited

Notes to the Unaudited Financial Statements for the Period from 1 November 2020 to 31 December 2021

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
40 Caversham Road
Reading
Berkshire
RG1 7BT
England

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Presentational currency is sterling, £, and the financial statements are in round pounds except for some notes which are in greater detail.

Going concern

The financial statements have been prepared on a going concern basis. The company is reliant on external investors and its largest shareholder providing additional funds in order to continue. Without such funding the company would not be able to continue operating as a going concern. The directors are confident that funds will continue to be forthcoming and enable the company to continue operating through to profitability, especially considering the investments in Net Nanny and the SafeToNet Family Stores made during the period. On that basis the financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts. Monthly sales are recognised in turnover in full on the date of receipt. Subscriptions for a longer period are recognised over the life of the subscription.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current tax payable.

 

Safetonet Limited

Notes to the Unaudited Financial Statements for the Period from 1 November 2020 to 31 December 2021

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Office equipment

33% straight line basis

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Amortisation

Asset class

Amortisation method and rate

Goodwill

Straight line over 7 years

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Creditors

Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

 

Safetonet Limited

Notes to the Unaudited Financial Statements for the Period from 1 November 2020 to 31 December 2021

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Share based payments

The company operates an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.

The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.

3

Staff numbers

The average number of persons employed by the company (including directors) during the period, was 23 (2020 - 28).

 

Safetonet Limited

Notes to the Unaudited Financial Statements for the Period from 1 November 2020 to 31 December 2021

4

Tangible assets

Office equipment
£

Total
£

Cost or valuation

At 1 November 2020

137,437

137,437

Additions

3,786

3,786

Disposals

(34,706)

(34,706)

At 31 December 2021

106,517

106,517

Depreciation

At 1 November 2020

109,401

109,401

Charge for the period

22,265

22,265

Eliminated on disposal

(34,706)

(34,706)

At 31 December 2021

96,960

96,960

Carrying amount

At 31 December 2021

9,557

9,557

At 31 October 2020

28,036

28,036

 

Safetonet Limited

Notes to the Unaudited Financial Statements for the Period from 1 November 2020 to 31 December 2021

5

Investments

2021
£

2020
£

Investments in subsidiaries

22,167,461

327,716

Subsidiaries

£

Cost or valuation

At 1 November 2020

327,716

Additions

21,839,745

At 31 December 2021

22,167,461

Provision

Carrying amount

At 31 December 2021

22,167,461

At 31 October 2020

327,716

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of shares held

     

2021

2020

Subsidiary undertakings

Safetonet Deutschland GmbH

Hohenzollernring 72, 50672 Köln, Germany.

Ordinary share

100%

100%

Avanatta Limited

2 Old Bath Road, Newbury, Berkshire, England, RG14 1QL

Ordinary shares

100%

100%

Safetonet UK Limited

2 Old Bath Road, Newbury, Berkshire, England, RG14 1QL

Ordinary shares

100%

100%

Safetonet NA Holdings Inc

Suite 2300, Bentall 5, 550 Burrard Street, Vancouver, BC, V6C 2B5, Canada

Common shares

100%

100%

VISR Inc

51 Breithaupt Street, Kitchener, Ontario N2H 5G5 Canada

Common shares and class seed preferred shares

100%

100%

 

Safetonet Limited

Notes to the Unaudited Financial Statements for the Period from 1 November 2020 to 31 December 2021

Undertaking

Registered office

Holding

Proportion of shares held

Safetonet Americas Inc

1209 Orange Street, Wilmington, New Castle County, Delaware 19801, USA

USA

Common stock

100%

100%

Safetonet US Inc

1209 Orange Street, Wilmington, New Castle County, Delaware 19801, USA

USA

Common stock

100%

100%

Safetonet Faimly Store GmbH

StohrerStrasse 17, 04347 Leipzig , Germany

Ordiany shares

75%

0%

System-RepairCenter GmbH

StohrerStrasse 17, 04347 Leipzig , Germany

Ordiany shares

75%

0%

CW Acquisition Corp

1055 Westlakes Drive, Berwyn, PA 19312, USA

Common stock

100%

0%

Zift Software LLC

1055 Westlakes Drive, Berwyn, PA 19312, USA

Common stock

100%

0%

The principal activity of all subsidiary undertakings is keeping children safe online.

6

Debtors

Note

2021
£

2020
£

Debtors

 

-

3,531,233

Amounts owed by group undertakings

5,445,962

-

Prepayments

 

90,155

209,466

Other debtors

 

771,599

1,057,896

 

6,307,716

4,798,595

 

Safetonet Limited

Notes to the Unaudited Financial Statements for the Period from 1 November 2020 to 31 December 2021

7

Creditors

Creditors: amounts falling due within one year

2021
£

2020
£

Due within one year

Loans and borrowings

264,793

-

Creditors

894,092

364,550

Amounts owed to group undertakings

1,061,573

232,076

Taxation and social security

166,504

307,175

Other creditors

2,004,801

314,428

Deferred income

113,393

2,126,904

4,505,156

3,345,133

Creditors: amounts falling due after more than one year

Note

2021
£

2020
£

Due after one year

 

Loans and borrowings

8

40,239

-

8

Loans and borrowings

2021
£

2020
£

Current loans and borrowings

Other borrowings

264,793

-

9

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £Nil (2020 - £210,000). Financial commitments relate to non-cancellable operating lease commitment of property.