Company registration number 11808844 (England and Wales)
DISCOVER ECHO UK LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
DISCOVER ECHO UK LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
DISCOVER ECHO UK LTD
BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
3
3,185
4,252
Current assets
Debtors
4
342,737
49,659
Cash at bank and in hand
290,080
138,275
632,817
187,934
Creditors: amounts falling due within one year
5
(1,049,191)
(648,915)
Net current liabilities
(416,374)
(460,981)
Net liabilities
(413,189)
(456,729)
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
(413,289)
(456,829)
Total equity
(413,189)
(456,729)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 29 September 2023
E Cho
Director
Company registration number 11808844 (England and Wales)
DISCOVER ECHO UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
1
Accounting policies
Company information
Discover Echo UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is The Courtyard, High Street, Ascot, Berkshire, SL5 7HP.
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
In assessing the company’s ability to remain a going concern the director has considered that the company’s sales derive from sales of the parent company's products, and therefore that the company's trading is dependent on the continued trading of the parent, Discover Echo Incorporated.
The director places reliance on a letter of support received from Discover Echo Incorporated that confirms it will provide support to Discover Echo UK Ltd for a period of 12 months from the signing of these financial statements. Whilst the letter of support is not legally binding, which has been taken in to consideration, the director has satisfied himself of both the willingness and ability of Discover Echo Incorporated to provide such support as may be necessary in order for the Company to fulfil its obligations to creditors and lenders as they fall due. On this basis the director has concluded that the going concern basis of preparation of the financial statements is appropriate.
1.3
Turnover
Turnover relates to the sale of microscopes and is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer.
1.4
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.
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:
Computers
20% 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.
DISCOVER ECHO UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 3 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The company has tax losses brought forward of £461,091, of which £45,496 had been utilised in the year. The company has been loss making in previous years and there is uncertainty if the losses will be utilised going forward, therefore we have not provided for deferred tax asset in the accounts.
1.6
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.7
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.
1.8
The company has tax losses brought forward of £461,091, of which £45,496 had been utilised in the year. The company has been loss making in previous years and there is uncertainty if the losses will be utilised going forward, therefore we have not provided for deferred tax asset in the accounts.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
2
2
DISCOVER ECHO UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2022 and 31 December 2022
5,338
Depreciation and impairment
At 1 January 2022
1,086
Depreciation charged in the year
1,067
At 31 December 2022
2,153
Carrying amount
At 31 December 2022
3,185
At 31 December 2021
4,252
4
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
342,521
48,213
Other debtors
216
1,446
342,737
49,659
5
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
1,524
383
Amounts owed to group undertakings
992,799
609,984
Taxation and social security
32,141
9,028
Other creditors
22,727
29,520
1,049,191
648,915
6
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
David Forinton
Statutory Auditor:
Kirk Rice LLP
DISCOVER ECHO UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -
7
Parent company
The company's immediate parent undertaking is Discover Echo Incorporated, a company incorporated in the USA with the registered office of: 9530 Padgett Street, Suite 101, San Diego, California 92126, USA.