REGISTERED NUMBER: |
AZOTIC TECHNOLOGIES LIMITED |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
REGISTERED NUMBER: |
AZOTIC TECHNOLOGIES LIMITED |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
AZOTIC TECHNOLOGIES LIMITED (REGISTERED NUMBER: 07925932) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 | to | 8 |
AZOTIC TECHNOLOGIES LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered accountants & statutory auditor |
East Suite, Ground Floor |
Avalon House |
St Catherine's Court |
Sunderland |
SR5 3XJ |
AZOTIC TECHNOLOGIES LIMITED (REGISTERED NUMBER: 07925932) |
BALANCE SHEET |
31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
Tangible assets | 5 |
Investments | 6 |
CURRENT ASSETS |
Stocks |
Debtors | 7 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 8 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
9 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 10 |
Share premium |
Convertible loan note reserve |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
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 |
AZOTIC TECHNOLOGIES LIMITED (REGISTERED NUMBER: 07925932) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | STATUTORY INFORMATION |
Azotic Technologies Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
For the period to date the company and group have been primarily focussed on research and development activities. This has necessarily resulted in the company reporting significant losses in this and prior years. |
The directors have considered the company's financial position, access to funding and business plans, and have a reasonable expectation that the company will have adequate resources to continue to trade into the foreseeable future. The company therefore continues to adopt the going concern basis in preparing the financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Intangible assets other than goodwill |
Development expenditure |
The company has adopted a policy of capitalising qualifying development expenditure as an intangible asset. |
In accordance with FRS102, development expenditure will qualify for capitalisation only where the company can demonstrate all of the following: |
(a) The technical feasibility of completing the development so that the intangible asset will be available for use or sale; |
(b) Its intention to complete the development and to use of sell the intangible asset; |
(c) Its ability to use or sell the intangible asset; |
(d) How the intangible asset will generate probably future economic benefits; |
(e) The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and |
(f) Its ability to measure reliably the expenditure attributable to the intangible asset during its development. |
All research expenditure and development expenditure that does not meet the above conditions is expensed as incurred. |
Capitalised development expenditure is initially recognised at cost and subsequently measured at cost less accumulated amortisation and accumulated impairment losses. |
Other intangible assets |
Other intangible assets are intially recognise at cost and subsequently measured at cost less accumulated amortisation and accumulated impairment losses. |
AZOTIC TECHNOLOGIES LIMITED (REGISTERED NUMBER: 07925932) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Amortisation |
All intangible assets are considered to have a finite useful life. Amortisation is recognised so as to write off cost of the assets less their residual values over their useful life. |
The estimated useful life of development expenditure is 10 years. Amortisation is charged in line with the pattern in which the company expects to consume the asset's future economic benefits over this period, based upon production and sales forecasts. |
Amortisation begins when the the intangible asset is available for use in the manner intended. At the reporting date the company had various development projects ongoing. |
Other intangible assets are amortised on the basis of the underlying contractual agreement, or projected useful life, on a straight line basis. |
Tangible fixed assets |
Land and buildings | - |
Plant and machinery etc | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost includes all directly attributable purchase and production costs in respect of stocks held at the balance sheet date. |
Financial instruments - convertible loan notes |
Where the company issues convertible loan notes, the equity value of the loan is calculated based on their fair value at the transaction date. The value is deducted from the debt instrument and allocated to a convertible loan note reserve. This amount will be transferred to the profit and loss account over the term of the loan notes using the effective interest method. |
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. |
AZOTIC TECHNOLOGIES LIMITED (REGISTERED NUMBER: 07925932) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all 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. |
Share based payments |
The company has issued options to employees under an Enterprise Management Incentive Plan. |
No expense was recognised on issue, or in subsequent accounting periods to date, due to uncertainty as to whether the vesting requirements to exercise the options would be met. A reassessment of the probability of the options vesting, and potential vesting period, is made at each reporting date. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | INTANGIBLE FIXED ASSETS |
Other |
intangible |
assets |
£ |
COST |
At 1 January 2022 |
Additions |
At 31 December 2022 |
AMORTISATION |
At 1 January 2022 |
Charge for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
AZOTIC TECHNOLOGIES LIMITED (REGISTERED NUMBER: 07925932) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
5. | TANGIBLE FIXED ASSETS |
Plant and |
Land and | machinery |
buildings | etc | Totals |
£ | £ | £ |
COST |
At 1 January 2022 |
Additions |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
6. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Amounts owed by group undertakings |
Other debtors |
AZOTIC TECHNOLOGIES LIMITED (REGISTERED NUMBER: 07925932) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Taxation and social security |
Other creditors |
9. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2022 | 2021 |
£ | £ |
Other creditors |
Amounts falling due in more than five years: |
Repayable otherwise than by instalments |
Convertible loan notes |
Equity value adjustment | (3,289,866 | ) | (3,575,345 | ) |
Other creditors represent convertible debt, secured by fixed and floating charges over the assets of the company. |
Adjustment has been made for the calculated equity value of the convertible loan notes issued, and the unwinding of the related finance cost. |
10. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary shares | 0.000008 | 106 | 106 |
U Class shares | 0.000008 | 42 | 42 |
148 | 148 |
Ordinary shares have full voting and dividend rights. |
U Class shares have no voting rights and carry a dvidend entitlement. |
11. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
AZOTIC TECHNOLOGIES LIMITED (REGISTERED NUMBER: 07925932) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
12. | OTHER FINANCIAL COMMITMENTS |
The company had operating lease commitments in respect of future periods totalling £245,728 at the year end (2021: £264,033); £53,873 (2021: £65,973) falling due within 12 months. |
13. | RELATED PARTY DISCLOSURES |
Included in other creditors at the year end is £3,000,000 (2020: £3,000,000) advanced by a company holding a participating interest in Azotic Technologies Limited. Interest of £180,000 (2021: £209,844) was charged on the loan in the year. |
The company has taken advantage of the exemption under FRS102 1A to not provide particulars of transactions with wholly-owned group companies. |
14. | ULTIMATE CONTROLLING PARTY |
Koppert B.V. held a controlling interest in the ordinary share capital of the company throughout the period. |
Koppert B.V. is a registered in The Netherlands, with the address: P.O. Box 155, 2650 AD Berkel en Rodenrijs, The Netherlands. |
Koppert B.V ceased to hold a controlling interest from 1 February 2023, following a share allotment by the company. |