Company registration number 10129221 (England and Wales)
YUMPINGO LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
PAGES FOR FILING WITH REGISTRAR
YUMPINGO LIMITED
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 9
YUMPINGO LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2022
31 March 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
4
46,177
43,433
Tangible assets
5
576,990
232,386
623,167
275,819
Current assets
Debtors
6
3,355,098
1,710,037
Cash at bank and in hand
803,518
4,201,878
4,158,616
5,911,915
Creditors: amounts falling due within one year
7
(1,281,311)
(209,003)
Net current assets
2,877,305
5,702,912
Total assets less current liabilities
3,500,472
5,978,731
Creditors: amounts falling due after more than one year
8
(1,728,000)
(1,600,000)
Provisions for liabilities
(109,720)
(50,023)
Net assets
1,662,752
4,328,708
Capital and reserves
Called up share capital
2,256
2,251
Share premium account
9,880,154
9,877,536
Other reserves
26,289
20,823
Profit and loss reserves
10
(8,245,947)
(5,571,902)
Total equity
1,662,752
4,328,708
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 March 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.
YUMPINGO LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 MARCH 2022
31 March 2022
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 9 September 2022 and are signed on its behalf by:
G Goodman
Director
Company Registration No. 10129221
YUMPINGO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 3 -
1
Accounting policies
Company information
Yumpingo Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5 Technology Park, Colindeep Lane, Colindale, London, United Kingdom, EC4N 6EU.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
The accounts have been prepared on a going concern basis. The company reported losses of £true2.6m for the year which reflects the company's continued investment in its product and growing its people base to meet forecast sales growth which was heavily impacted by the Covid pandemic. At the time of signing. It is the directors' expectation that the company will continue its investment both in its US subsidiary and its product for the foreseeable future. It's likely that the company will look to raise additional capital in the next 12 months to support Yumpingo's ambitious growth plans.
1.3
Turnover
The revenue is recognised according to standard accruals accounting which requires the apportionment of income from sales according to when the obligations relating to those sales have been performed and thereby the economic benefits should be recognised upon performance of those obligations.
There are typically two areas where this policy impacts on the timing of the revenue recognition:
HAAS (Device revenue) is recognised over the rental length of the contract.
SAAS revenue is recognised over the length of the subscription.
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.
Patent and licences
Patents and licences are initially measured at cost. After initial recognition, patents and licences are measured at cost less any accumulated amortisation and any accumulated impairment losses.
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:
Patents & licences
are amortised evenly over their estimated useful life of ten years
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
YUMPINGO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 4 -
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:
Fixtures and fittings
15% on cost
Computers
50% on cost
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 fixed 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.
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.
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 debtors 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.
YUMPINGO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including creditors, 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
Compound instruments
The proceeds received on issue of the group’s convertible debt are allocated into their liability and equity
components and presented separately in the balance sheet when the market value of the instrument differs materially from the net proceeds of the debt instrument issued by the company. Transaction costs that relate to the issue of the instrument are allocated to the liability and equity components of the instrument in proportion to the allocation of proceeds.
The amount initially attributed to the debt component equals the discounted cash flows using a market rate of interest that would be payable on a similar debt instrument that did not include an option to convert. This is then measured at amortised cost.
On conversion, the debt and equity elements are credited to share capital and share premium as appropriate, with no gain or loss recognised.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
YUMPINGO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 6 -
1.11
Share-based payments
Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. The fair value excludes the effect of non-market-based vesting conditions. Details regarding the determination of the fair value of equity-settled share-based transactions are set out in note 11.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Company's estimate of equity instruments that will eventually vest unless the exercise period commences immediately following the grant date, in which case the entire fair value of the equity-settled share-based payment is expensed to the income statement. At each balance sheet date, the Company revises its estimate of the number of equity instruments expected to vest as a result of the effect of non-market-based vesting conditions. The impact of the revision of the original estimates, if any, is recognised in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to equity reserves.
1.12
Government grants
The company recognises government grant received relating to the Job Retention Scheme. The grant is recognised in the Income Statement over the period in which the company recognises the related costs for which the grant is intended to compensate.
1.13
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.
1.14
Expenditure on research and development is written off in the year in which it is incurred.
1.15
Investments in subsidiaries
Investments in subsidiaries undertakings are recognised at cost less accumulated impairment.
The cost of the subsidiary is trivial for the accounts and therefore its value has not been disclosed.
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.
The directors consider that the amortisation of the intangible assets to be a significant estimate.
YUMPINGO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 7 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
27
26
4
Intangible fixed assets
Other
£
Cost
At 1 April 2021
49,979
Additions
4,998
At 31 March 2022
54,977
Amortisation and impairment
At 1 April 2021
6,546
Amortisation charged for the year
2,254
At 31 March 2022
8,800
Carrying amount
At 31 March 2022
46,177
At 31 March 2021
43,433
YUMPINGO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 8 -
5
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 April 2021
5,589
443,377
448,966
Additions
5,500
495,294
500,794
At 31 March 2022
11,089
938,671
949,760
Depreciation and impairment
At 1 April 2021
5,519
211,061
216,580
Depreciation charged in the year
758
155,432
156,190
At 31 March 2022
6,277
366,493
372,770
Carrying amount
At 31 March 2022
4,812
572,178
576,990
At 31 March 2021
70
232,316
232,386
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
982,325
106,153
Corporation tax recoverable
317,661
Other debtors
2,277,694
1,253,977
Prepayments and accrued income
95,079
32,246
3,355,098
1,710,037
During the year a provision of bad debt had been provided due to the impact of the pandemic.
7
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
200,926
66,000
Taxation and social security
233,826
44,513
Other creditors
6,395
23,409
Accruals and deferred income
840,164
75,081
1,281,311
209,003
YUMPINGO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 9 -
8
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Convertible loans
1,728,000
1,600,000
9
Share-based payment transactions
Number of share options
Weighted average exercise price
2022
2021
2022
2021
Number
Number
£
£
Outstanding at 1 April 2021
26,850
26,850
1.13
1.13
Forfeited
(5,000)
1.13
Outstanding at 31 March 2022
21,850
26,850
1.13
1.13
Exercisable at 31 March 2022
The directors are of the opinion that the fair value of the share options granted during the year is £5,466 (2021: £3,868). An option pricing model has not been used to calculate the fair value, as the fair value per share would not be materially different from the value agreed with HMRC as part of the EMI scheme. The same approach has been used to value the unapproved share options.
The share options have a vesting period of first, second and third anniversary of the grant date. In addition to the vesting period there is an expiration period that is 10 years from the grant date.
10
Profit and loss reserves
Called-up share capital represents the nominal value of shares that have been issued.
Share premium includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.
Share option reserve represents fair value adjustment resulting from the valuation of share options. These are unrealised and not available for distribution.
11
Related party transactions
At the year end the company was owed £2,252,404 (2021: £1,233,163) by a subsidiary under common control. This amount is interest free and repayable on demand.