During the year, loans converted to share capital, totalling £678,807. No new funds were received in the year for any convertible loans or advance subscription agreements.
The outstanding convertible loans, are included within other creditors. The loans contain 2 components; liability and equity elements. The equity element is presented in equity under the heading 'other reserves'. The effective interest rate of the liability element on initial recognition is 10% per annum
2023 2022
At 1 September 2022 1,025,143 599,134
Proceeds of issue - 561,000
Equity component - (134,991)
Converted to Share Capital (678,807)
As
31 August 2023
346,336 1,025,143