At the reporting date the company had net liabilities of £115,270 (2021: £113,696) and is dependent on the support of credit terms from its suppliers and loans from third parties. The company meets its day to day working capital requirements through the utilisation of credit terms from its suppliers and third party loans.
The rights to films are exploited by the company and the director is hopeful that sufficient revenue will be generated from which funds will be made available to make payments to all clear all outstanding loans and amounts due to suppliers, however film sales are volatile and payments cannot be guaranteed.
The director therefore continues to adopt the going concern basis in preparing the company’s financial statements but with the proviso that a material uncertainty exists over the company’s future.