Registered number: 13354764
EPITOPEA LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2023
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EPITOPEA LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditors
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EPITOPEA LIMITED
CONTENTS
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Independent Auditors' Report
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Statement of Profit or Loss and Other Comprehensive Income
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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EPITOPEA LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 APRIL 2023
The directors present their report and the financial statements for the period ended 30 April 2023.
The Company's principal activity is research and experimental development on biotechnology.
The directors who served during the period were:
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L Rulleau
Dr R B Parekh (Resigned 13 March 2023)
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Dr S Jindal (appointed 14 March 2023)
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DIRECTORS' RESPONSIBILITIES STATEMENT
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The directors are responsible for preparing the Directors' Report and the financial statements, in accordance with applicable law.
Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the UK.
Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing the financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgements and estimates that are reasonable and prudent;
∙state whether they have been prepared in accordance with IFRS as adopted by the UK, subject to any material departures disclosed and explained in the financial statements;
∙assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
∙use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
QUALIFYING THIRD PARTY INDEMNITY PROVISION
All directors benefited from qualifying indemnity provisions during the financial year and at the date of this report.
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EPITOPEA LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
DISCLOSURE OF INFORMATION TO AUDITORS
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
SMALL COMPANIES' EXEMPTION NOTE
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In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
The auditors, Peters Elworthy & Moore, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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EPITOPEA LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EPITOPEA LIMITED
We have audited the financial statements of Epitopea Limited for the period ended 30 April 2023 which comprise the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies set out on pages 12 - 16. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.
In our opinion the financial statements:
∙give a true and fair view of the state of the Company's affairs as at 30 April 2023 and of its loss for the period then ended;
∙have been properly prepared in accordance with IFRSs as adopted by the United Kingdom; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
MATERIAL UNCERTAINTY RELATED TO GOING CONCERN
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We draw attention to note 2.4 in the financial statements, which indicates that the company will require additional funding in order to continue as a going concern. These events or conditions, along with the other matters as set forth in note 2.4, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report, other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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EPITOPEA LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EPITOPEA LIMITED (CONTINUED)
OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Directors' Report has been prepared in accordance with applicable legal requirements.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
∙the directors were not entitled to take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.
RESPONSIBILITIES OF DIRECTORS
As explained more fully in the responsibilities statement on page 1, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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EPITOPEA LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EPITOPEA LIMITED (CONTINUED)
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
∙we identified the laws and regulations applicable to the Company through discussions with management and from our commercial knowledge and experience of research and development companies;
∙we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements, including IFRS, the Companies Act 2006 and relevant taxation legislation, or the operations of the Company including employment matters and health and safety;
∙we obtained an understanding of the Company’s policies and procedures on compliance with laws and regulations, including documentation of any instances of non-compliance;
∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence available; and
∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of fraud through management bias and override of controls. In addressing the risk of fraud through management override of controls we:
∙tested the appropriateness of journal entries and other adjustments;
∙designed procedures to identify unexpected and unusual journal entries and performed testing to confirm the validity of such postings;
∙assessed whether the significant accounting judgements and estimates made in the financial statements were indicative of potential bias; and
∙evaluated the business rationale of any significant transactions that were unusual or outside the normal course of business.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
∙agreeing financial statement disclosures to underlying supporting documentation;
∙reading the minutes of meetings of those charged with governance; and
∙enquiring of management as to actual and potential litigation and claims
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EPITOPEA LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EPITOPEA LIMITED (CONTINUED)
AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED)
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if
any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they
may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
James Burrett (Senior Statutory Auditor)
for and on behalf of
Peters Elworthy & Moore
Chartered Accountants
Statutory Auditors
Salisbury House
Station Road
Cambridge
CB1 2LA
22 November 2023
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EPITOPEA LIMITED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 APRIL 2023
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TOTAL COMPREHENSIVE INCOME
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The notes on pages 12 to 26 form part of these financial statements.
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EPITOPEA LIMITED
REGISTERED NUMBER: 13354764
STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2023
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Property, plant and equipment
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Trade and other receivables
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Cash and cash equivalents
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Trade and other liabilities
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TOTAL CURRENT LIABILITIES
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ISSUED CAPITAL AND RESERVES
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EPITOPEA LIMITED
REGISTERED NUMBER: 13354764
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 APRIL 2023
The financial statements on pages 7 to 26 were approved and authorised for issue by the board of directors and were signed on its behalf by:
The notes on pages 12 to 26 form part of these financial statements.
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EPITOPEA LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 APRIL 2023
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Total comprehensive income for the period
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Total contributions by and distributions to owners
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Total comprehensive income for the period
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Share option charge movement
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Total contributions by and distributions to owners
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The notes on pages 12 to 26 form part of these financial statements.
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EPITOPEA LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 APRIL 2023
CASH FLOWS FROM OPERATING ACTIVITIES
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Depreciation of property, plant and equipment
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Share-based payment expense
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Income tax expense/(receipt)
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MOVEMENTS IN WORKING CAPITAL:
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Increase in trade and other receivables
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Increase in trade and other payables
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CASH GENERATED FROM OPERATIONS
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NET CASH (USED IN)/FROM OPERATING ACTIVITIES
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CASH FLOWS FROM INVESTING ACTIVITIES
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Purchases of property, plant and equipment
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NET CASH USED IN INVESTING ACTIVITIES
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CASH FLOWS FROM FINANCING ACTIVITIES
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NET CASH FROM FINANCING ACTIVITIES
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NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
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Cash and cash equivalents at the beginning of period
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CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
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The notes on pages 12 to 26 form part of these financial statements.
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EPITOPEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2023
Epitopea Limited (the 'Company') is a limited company incorporated in England and Wales. The Company's registered office is at Salisbury House, Station Road, Cambridge, CB1 2LASalisbury House, Station Road, Cambridge, CB1 2LA. The nature of the Company's operations and principal activities are set out in the Directors' Report on pages 3 to 4.
2.ACCOUNTING POLICIES
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Basis of preparation and measurement
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The financial statement have been prepared in accordance with International Financial Reporting
Standards, International Accounting Standards and Interpretations as adopted by the UK (collectively
IFRSs).
In preparing these financial statement, management has made judgements, estimates and assumptions
that affect the application of the Company accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are
recognised prospectively.
The areas where judgements and estimates have been made in preparing the financial statement and
their effects are disclosed in note 3.
The financial statements have been prepared on the historical cost basis.
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Changes in accounting policies
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i) NEW STANDARDS, INTERPRETATIONS AND AMENDMENTS EFFECTIVE FROM 23 APRIL
2021
The following tables summarise the impacts of adopting new accounting standards on the Company's
financial statements.
International Accounting Standard (IAS/IFRS) Effective Date
Amendments to:
IFRS 16 COVID-19 Related Rent Concessions 23 April 2021
This amendment has not had a material impact on the Company in the current year.
ii) NEW STANDARDS, INTERPRETATIONS AND AMENDMENTS NOT YET EFFECTIVE
The following new standards, interpretations and amendments, which are not yet effective and have not
been adopted early in these financial statements, will or may have an effect on the Company's future
financial statements:
International Accounting Standard (IAS/IFRS) Effective Date
Amendments to:
IAS 1 'Presentation of Financial Statements' - Classification of Liabilities 1 January 2023
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EPITOPEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2023
2.ACCOUNTING POLICIES (CONTINUED)
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Functional and presentation currency
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These financial statements are presented in GB Pound Sterling, which is the Company's functional
currency. All amounts have been rounded to the nearest pound, unless otherwise indicated.
Management are confident based upon forecasts that the company has adequate resources to continue in operational existence for the foreseeable future being a period of no less than 12 months from the date of approval of these financial statements. To continue at current expenditure levels a further funding round is required, should this take longer than expected then the company is able to reduce costs accordingly. They continue to adopt the going concern basis of accounting in preparing the financial statements.
Research and development expenditure is written off in the year in which it is incurred.
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Defined contribution schemes
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Contributions to defined contribution pension schemes are charged to the statement of comprehensive income in the period to which they relate.
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Short-term and other long-term employee benefits
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A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.
Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.
Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.
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EPITOPEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2023
2.ACCOUNTING POLICIES (CONTINUED)
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into
account by adjusting the number of equity instruments expected to vest at each balance sheet date
so that, ultimately, the cumulative amount recognised over the vesting period is based on the number
of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition. The fair value of the award also takes into account non-vesting conditions.
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
The share based payment charge in the Company accounts is based only on those option holders employed directly by the Company.
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the period. Taxable profit differs from ‘profit before tax’ as reported in the Statement of Profit or Loss and Other Comprehensive Income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
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EPITOPEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2023
2.ACCOUNTING POLICIES (CONTINUED)
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
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Property, plant and equipment
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Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.
Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following range:
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Other property, plant and equipment
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Cash and cash equivalents
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Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments maturing within 90 days from the date of acquisition that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
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EPITOPEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2023
2.ACCOUNTING POLICIES (CONTINUED)
Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
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ACCOUNTING ESTIMATES AND JUDGEMENTS
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3.1 JUDGEMENT
Capitalised development costs
Determining whether the recognition requirements for the capitalisation of development costs are met requires judgement. In particular, the point at which development costs meet the criteria for capitalisation is critically dependent on management’s judgement of the probability and measurability of future economic benefits. No development costs have been capitalised during the period ended 30 April 2023.
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3.2 ESTIMATES AND ASSUMPTIONS
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Useful economic lives of non-current assets
The annual amortisation charge for intangible assets is sensitive to changes in the estimated useful economic lives and residual values of assets. The useful economic lives and residual values are assessed annually. They are amended when necessary to reflect current estimates, based on technological advancements, future investments, economic utilisation and the physical condition of the assets. No development costs have been amortised during the period ended 30 April 2023.
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EPITOPEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2023
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EMPLOYEE BENEFITS EXPENSES
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EMPLOYEE BENEFIT EXPENSES (INCLUDING DIRECTORS) COMPRISE:
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Defined contribution pension cost
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Key management personnel compensation
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company.
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The monthly average number of persons, including the directors, employed by the Company during the period was as follows:
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EPITOPEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2023
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Company contributions to pension schemes
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Amounts receivable under long-term incentive schemes
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During the period, 1 director (2022 - 0 directors) received shares under long-term incentive schemes.
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EPITOPEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2023
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6.1 INCOME TAX RECOGNISED IN PROFIT OR LOSS
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Current tax on profits for the period
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Adjustments in respect of prior years
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The reasons for the difference between the actual tax charge for the period and the standard rate of corporation tax in the United Kingdom applied to losses for the period are as follows:
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Income tax credit/expense (including income tax on associate, joint venture and discontinued operations)
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Tax using the Company's domestic tax rate of 19% (2022:19%)
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Dividends from UK companies
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Unrelieved tax losses carried forward
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Other differences leading to an increase/(decrease) in the tax charge
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CHANGES IN TAX RATES AND FACTORS AFFECTING THE FUTURE TAX CHARGES
Any closing deferred tax assets and liabilities would be calculated at 25% in accordance with the rates
enacted at the Statement of Financial Position date. The Finance Act 2021, which announced the
upcoming rise in headline rates of corporation tax to 25% from 1 April 2023, was substantively enacted on
24 May 2021.
The Company has unrelieved trading losses estimated at £1,242,808 which remain available to offset
against future taxable trading profits. No deferred tax asset has been recognised in respect of the tax
losses or other timing differences due to uncertainty over the timing of their recovery.
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EPITOPEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2023
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PROPERTY, PLANT AND EQUIPMENT
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Other property, plant and equipment
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Other property, plant and equipment
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ACCUMULATED DEPRECIATION AND IMPAIRMENT
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Charge owned for the period
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Charge owned for the period
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EPITOPEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2023
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TRADE AND OTHER RECEIVABLES
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Prepayments and accrued income
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TOTAL CURRENT TRADE AND OTHER RECEIVABLES
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The carrying value of trade and other receivables classified as loans and receivables approximates fair value.
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Taxation and social security
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TOTAL CURRENT TRADE AND OTHER PAYABLES
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The carrying value of trade and other payables classified as financial liabilities measured at amortised cost approximates fair value.
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EPITOPEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2023
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Redeemable preference shares
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TOTAL LOANS AND BORROWINGS
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Loans relate to 3,704,379 redeemable preference shares classified as liabilities. These redeemable preference shares carry the option to convert 8 years after the date of adoption, 11 November 2021 and incurs a fixed cumulative preferential dividends of 8% per annum.
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ORDINARY SHARES OF £0.0001 each
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VOTING SHARES OF £0.0001 each
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Retained earnings
Retained earnings includes all current and previous period retained profits and accumulated losses.
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EPITOPEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2023
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FINANCIAL RISK MANAGEMENT
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Financial assets measured at amortised cost:
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Trade and other receivables
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Cash and cash equivalents
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Financial liabilities measured at amortised cost:
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FINANCIAL RISK FACTORS
LIQUIDITY RISK
Liquidity risk is the risk that the Company will encounter difficulty in meeting its short term obligations associated with financial liabilities.
Liquidity needs are monitored by the Company to ensure it has sufficient funds to meet its liabilities when due, under normal and unexpected conditions, without incurring unacceptable losses.
INTEREST RATE RISK
Interest rate risk is the risk that changes in market interest rates will cause fluctuations to the fair values and cash flows of the Company's financial instruments.
The Company only has minimal exposure to changes in market interest rates as it does not hold significant funds in bank accounts, or have significant external borrowings, which are subject to variable interest rates.
CURRENCY RISK
Currency risk is the risk that changes in foreign exchange rates will cause fluctuations to the fair values of the Company's financial instrument holdings that are denominated in a currency other than the functional currency in which they are measured.
The Company is not significantly exposed to currency risk as it does not regularly transact in foreign currencies and therefore there is not considered a need to hedge anticipated cash flows. As the Company's international exposure increases the directors will continue to monitor any change in its exposure to foreign currencies and will consider implementing appropriate risk management strategies.
CREDIT RISK
Credit risk is currently minimal as the business is in its pre-revenue stage with minimal other receivables.
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EPITOPEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2023
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The Company's capital management objectives are to ensure the Company's ability to continue as a going concern and to provide adequate return to shareholders by balancing its trading performance with continuing investment to fund its activities and product development.
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The Company considers capital to be shareholders' equity as shown in the Statement of Financial Position, as the Company is primarily funded by equity finance. To maintain or adjust the capital structure the Company may return capital to shareholders and issue new shares.
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The Company is not subject to any externally imposed capital requirements.
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EPITOPEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2023
As at 30 April 2023,there were three share option programmes in operation with distinct vesting conditions:
(i) EMI scheme, under which options vest over a period of 4 years' service; and
(ii) Non-tax advantaged scheme, with a term of 4 years; and
(iii) Unapproved scheme, which vest over a period of 4 years on the occurrence of a sale,
reconstruction, or compulsory acquisition event.
The fair value of services received in return for the share options granted is based on the fair value of the share options granted measured using the Black-Scholes model.
The following inputs were used in the measurement of the fair values at grant date of the share based payment plans:
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Share price at grant date
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Weighted average exercise price
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Weighted average exercise price
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Forfeited/lapsed during the year
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Exercised during the year
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The total expense recognised in the period from share-based payment transactions was £53,588.
The weighted average remaining contractual lives of the outstanding options is 2.9 years.
Out of the 952,500 outstanding options 222,656 were exercisable at the year end.
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EPITOPEA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2023
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RELATED PARTY TRANSACTIONS
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During the period, the company made purchases of £24,323 to Epitopea, Inc, a connected company by virtue of common control. At the period end, a balance of £1,697 was due to Epitopea, Inc held within trade payables. Also during the period, the company made recharges of £203,625 to Epitopea, Inc. At the period end, a balance of £15,504 was due from Epitopea, Inc held within trade receivables.
The company does not have an ultimate controlling party as no shareholder holds a majority shareholding.
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