Company registration number SC569032 (Scotland)
CLAS-SIC WAFER FAB LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
PAGES FOR FILING WITH REGISTRAR
CLAS-SIC WAFER FAB LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
CLAS-SIC WAFER FAB LIMITED
BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
23,726,064
25,629,412
Current assets
Stocks
1,494,246
737,854
Debtors
4
3,319,240
846,646
Cash at bank and in hand
798,752
1,557,094
5,612,238
3,141,594
Creditors: amounts falling due within one year
5
(2,896,963)
(867,161)
Net current assets
2,715,275
2,274,433
Total assets less current liabilities
26,441,339
27,903,845
Creditors: amounts falling due after more than one year
6
-
0
(3,412)
Net assets
26,441,339
27,900,433
Capital and reserves
Called up share capital
106,223
105,845
Share premium account
48,902,038
48,902,038
Other reserves
716
496
Profit and loss reserves
(22,567,638)
(21,107,946)
Total equity
26,441,339
27,900,433

The directors of the company have 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 by the board of directors and authorised for issue on 13 November 2023 and are signed on its behalf by:
Ms R Hyndman
Director
Company Registration No. SC569032
CLAS-SIC WAFER FAB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
1
Accounting policies
Company information

Clas-sic Wafer Fab Limited is a private company limited by shares incorporated in Scotland. The registered office is Unit 10 - 12, Avenue Industrial Estate, Lochgelly, KY5 9HQ.

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

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

The company is currently in its process, product development and production phase. The directors have prepared forecasts and projections which demonstrate that the company can meet its obligations as they fall due.

1.3
Turnover

Turnover relates to the provision of engineering design, feasibility services and fabrication of silicon carbide device wafers and is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

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.

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:

Leasehold land and buildings
Straight line over 7 to 20 years
Plant and equipment
Straight line over 15 years
Fixtures and fittings
Straight line over 4 years
Computers and IT equipment
Straight line over 3 years
CLAS-SIC WAFER FAB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 3 -

Assets in the course of construction are not depreciated until the asset is brought into use and transferred to the appropriate category.

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 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
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

1.8
Cash at bank and in hand

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.

1.9
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 balance sheet 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.

CLAS-SIC WAFER FAB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 4 -
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.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.11
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 profit and loss account 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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

CLAS-SIC WAFER FAB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 5 -
1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

Where material the cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.16
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

CLAS-SIC WAFER FAB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 6 -
1.17
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.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
59
46
3
Tangible fixed assets
Leasehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Computers and IT equipment
Total
£
£
£
£
£
£
Cost
At 1 July 2022
19,738,576
57,600
11,574,785
50,793
46,924
31,468,678
Additions
-
0
152,141
161,138
-
0
-
0
313,279
Transfers
-
0
(192,000)
192,000
-
0
-
0
-
0
At 30 June 2023
19,738,576
17,741
11,927,923
50,793
46,924
31,781,957
Depreciation and impairment
At 1 July 2022
4,010,669
-
0
1,746,039
37,417
45,141
5,839,266
Depreciation charged in the year
1,415,532
-
0
786,614
12,698
1,783
2,216,627
At 30 June 2023
5,426,201
-
0
2,532,653
50,115
46,924
8,055,893
Carrying amount
At 30 June 2023
14,312,375
17,741
9,395,270
678
-
0
23,726,064
At 30 June 2022
15,727,907
57,600
9,828,746
13,376
1,783
25,629,412
CLAS-SIC WAFER FAB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 7 -
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,135,994
18,522
Corporation tax recoverable
289,369
332,473
Other debtors
1,893,877
495,651
3,319,240
846,646
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,112,621
597,675
Other taxation and social security
76,646
58,018
Other creditors
1,707,696
211,468
2,896,963
867,161
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
-
0
3,412
7
Share-based payment transactions
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 1 July 2022
171,010
97,343
0.01
0.01
Granted
144,355
135,274
0.01
0.01
Forfeited
(46,728)
(28,394)
0.01
0.01
Exercised
(37,900)
(33,213)
0.01
0.01
Outstanding at 30 June 2023
230,737
171,010
0.01
0.01
Exercisable at 30 June 2023
23,114
13,722
0.01
0.01

The options outstanding at 30 June 2023 had an exercise price of £0.01 and a remaining contractual life of 1.08 years, 2.75 years, 3.92 years and 4.92 years for 33,117, 22,124, 50,320 and 125,176 options respectively.

CLAS-SIC WAFER FAB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
7
Share-based payment transactions
(Continued)
- 8 -
Liabilities and expenses

During the year, the company recognised total share-based payment expenses of £219 (2022 - £335) which related to equity settled share based payment transactions.

8
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:
Alan Mitchell
Statutory Auditor:
Thomson Cooper
Date of audit report:
16 November 2023
9
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
407,650
455,983
10
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
308,853
387,000
2023-06-302022-07-01false16 November 2023CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedMr J BrookhartMr C JohnsonMs R HyndmanMr A AgarwalMr W WestfalseSC5690322022-07-012023-06-30SC5690322023-06-30SC5690322022-06-30SC569032core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-06-30SC569032core:ConstructionInProgressAssetsUnderConstruction2023-06-30SC569032core:PlantMachinery2023-06-30SC569032core:FurnitureFittings2023-06-30SC569032core:ComputerEquipment2023-06-30SC569032core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-06-30SC569032core:ConstructionInProgressAssetsUnderConstruction2022-06-30SC569032core:PlantMachinery2022-06-30SC569032core:FurnitureFittings2022-06-30SC569032core:ComputerEquipment2022-06-30SC569032core:CurrentFinancialInstruments2023-06-30SC569032core:CurrentFinancialInstruments2022-06-30SC569032core:Non-currentFinancialInstruments2023-06-30SC569032core:Non-currentFinancialInstruments2022-06-30SC569032core:ShareCapital2023-06-30SC569032core:ShareCapital2022-06-30SC569032core:SharePremium2023-06-30SC569032core:SharePremium2022-06-30SC569032core:OtherMiscellaneousReserve2023-06-30SC569032core:OtherMiscellaneousReserve2022-06-30SC569032core:RetainedEarningsAccumulatedLosses2023-06-30SC569032core:RetainedEarningsAccumulatedLosses2022-06-30SC569032bus:Director32022-07-012023-06-30SC569032core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-07-012023-06-30SC569032core:PlantMachinery2022-07-012023-06-30SC569032core:FurnitureFittings2022-07-012023-06-30SC569032core:ComputerEquipment2022-07-012023-06-30SC569032core:ConstructionInProgressAssetsUnderConstruction2022-07-012023-06-30SC5690322021-07-012022-06-30SC569032core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-06-30SC569032core:ConstructionInProgressAssetsUnderConstruction2022-06-30SC569032core:PlantMachinery2022-06-30SC569032core:FurnitureFittings2022-06-30SC569032core:ComputerEquipment2022-06-30SC5690322022-06-30SC5690322021-06-30SC569032bus:PrivateLimitedCompanyLtd2022-07-012023-06-30SC569032bus:SmallCompaniesRegimeForAccounts2022-07-012023-06-30SC569032bus:FRS1022022-07-012023-06-30SC569032bus:Audited2022-07-012023-06-30SC569032bus:Director12022-07-012023-06-30SC569032bus:Director22022-07-012023-06-30SC569032bus:Director42022-07-012023-06-30SC569032bus:Director52022-07-012023-06-30SC569032bus:FullAccounts2022-07-012023-06-30xbrli:purexbrli:sharesiso4217:GBP