Company registration number SC363190 (Scotland)
MEDANNEX LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
PAGES FOR FILING WITH REGISTRAR
MEDANNEX LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
MEDANNEX LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
659,618
604,257
Tangible assets
4
1,745
2,180
661,363
606,437
Current assets
Debtors
5
576,386
2,153,642
Cash at bank and in hand
623,554
153,566
1,199,940
2,307,208
Creditors: amounts falling due within one year
6
(1,702,676)
(1,730,052)
Net current (liabilities)/assets
(502,736)
577,156
Net assets
158,627
1,183,593
Capital and reserves
Called up share capital
8
309
301
Share premium account
14,280,581
13,398,588
Profit and loss reserves
(14,122,263)
(12,215,296)
Total equity
158,627
1,183,593

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 16 April 2024 and are signed on its behalf by:
Mr I Abercrombie
Director
Company registration number SC363190 (Scotland)
MEDANNEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
1
Accounting policies
Company information

Medannex Limited is a private company limited by shares incorporated in Scotland. The registered office is 1 Lochrin Square, 92 - 98 Fountainbridge, Edinburgh, EH3 9QA.

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

As a pre-commercialisation biotech, the company is reliant upon research grants and monies from third party investors. Should third party investment not be forthcoming the directors have contingency plans in place to adapt the level of research work carried out until further investment is obtained. In addition, the directors recognise that the company's liquidity position is supported by a pledge from Christopher Wood to cover any shortfall in funding. true

 

The directors have reviewed the cashflow requirements and are satisfied that at the time of approving the financial statements the company has adequate resources to continue in operational existence for a period of not less than twelve months. On the basis of the above the directors consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Intangible fixed assets other than goodwill

Amortisation 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:

Patents
25 years across estimated useful life
1.4
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:

Computer equipment
20% reducing balance

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.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

MEDANNEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.6
Cash and cash equivalents

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. Any bank overdrafts are shown within borrowings in current liabilities.

1.7
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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from related parties 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.

1.8
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.

1.9
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.

MEDANNEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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.

1.10
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.

 

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

1.11
Retirement benefits

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

1.12
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 value agreed by the directors. The fair value is expensed at the date the options are exercised.

 

1.13
Leases

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.

1.14
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.

1.15

Research and development

Research expenditure is written off to the profit and loss account in the period in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit.

MEDANNEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 5 -
2
Employees

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

2023
2022
Number
Number
Total
13
14
3
Intangible fixed assets
Patents
£
Cost
At 1 October 2022
650,925
Additions
70,287
At 30 September 2023
721,212
Amortisation and impairment
At 1 October 2022
46,668
Amortisation charged for the year
14,926
At 30 September 2023
61,594
Carrying amount
At 30 September 2023
659,618
At 30 September 2022
604,257
4
Tangible fixed assets
Computer equipment
£
Cost
At 1 October 2022 and 30 September 2023
4,385
Depreciation and impairment
At 1 October 2022
2,205
Depreciation charged in the year
435
At 30 September 2023
2,640
Carrying amount
At 30 September 2023
1,745
At 30 September 2022
2,180
MEDANNEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 6 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
576,386
2,153,642
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
859,639
935,986
Taxation and social security
29,831
27,567
Other creditors
813,206
766,499
1,702,676
1,730,052
7
Share-based payment transactions
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 1 October 2022
794,500
817,000
0.49
0.50
Expired
(2,500)
(22,500)
0.90
0.90
Outstanding at 30 September 2023
792,000
794,500
0.49
0.49
Exercisable at 30 September 2023
643,500
511,750
0.40
0.30

The options outstanding at 30 September 2023 had an exercise price ranging from £0.001 to £0.90, and a remaining contractual life of up to 7 years 8 months.

No expense related to equity settled share based payment transactions has been recognised in the year.

8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.001p each
30,899,418
30,162,580
309
301
9
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.

MEDANNEX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
9
Audit report information
(Continued)
- 7 -
Senior Statutory Auditor:
Jacqueline Whyte
Statutory Auditor:
Thomson Cooper
Date of audit report:
16 April 2024
10
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
£
£
143,323
411,596
11
Events after the reporting date

On 15 January 2024, the company issued 1,919,270 ordinary shares of £0.00001 each for £953,880 to raise additional working capital. On 15 February 2024, a further 100,602 ordinary shares of £0.00001 each were issued for £50,000 to raise additional working capital. On 15 April 2024, a further 905,432 ordinary shares of £0.00001 each were issued for £450,000 to raise additional working capital.

 

2023-09-302022-10-01false16 April 2024CCH SoftwareCCH Accounts Production 2024.100No description of principal activityThis audit opinion is unqualifiedProfessor C WoodMr H GriffithMr W HannaK LipmanMr I ChengMr I AbercrombieSir G S BradyfalsefalseSC3631902022-10-012023-09-30SC3631902023-09-30SC3631902022-09-30SC363190core:IntangibleAssetsOtherThanGoodwill2023-09-30SC363190core:IntangibleAssetsOtherThanGoodwill2022-09-30SC363190core:ComputerEquipment2023-09-30SC363190core:ComputerEquipment2022-09-30SC363190core:CurrentFinancialInstrumentscore:WithinOneYear2023-09-30SC363190core:CurrentFinancialInstrumentscore:WithinOneYear2022-09-30SC363190core:CurrentFinancialInstruments2023-09-30SC363190core:CurrentFinancialInstruments2022-09-30SC363190core:ShareCapital2023-09-30SC363190core:ShareCapital2022-09-30SC363190core:SharePremium2023-09-30SC363190core:SharePremium2022-09-30SC363190core:RetainedEarningsAccumulatedLosses2023-09-30SC363190core:RetainedEarningsAccumulatedLosses2022-09-30SC363190bus:Director62022-10-012023-09-30SC363190core:IntangibleAssetsOtherThanGoodwill2022-10-012023-09-30SC363190core:PatentsTrademarksLicencesConcessionsSimilar2022-10-012023-09-30SC363190core:ComputerEquipment2022-10-012023-09-30SC3631902021-10-012022-09-30SC363190core:IntangibleAssetsOtherThanGoodwill2022-09-30SC363190core:ComputerEquipment2022-09-30SC363190core:WithinOneYear2023-09-30SC363190core:WithinOneYear2022-09-30SC3631902022-09-30SC3631902021-09-30SC363190bus:PrivateLimitedCompanyLtd2022-10-012023-09-30SC363190bus:SmallCompaniesRegimeForAccounts2022-10-012023-09-30SC363190bus:FRS1022022-10-012023-09-30SC363190bus:Audited2022-10-012023-09-30SC363190bus:Director12022-10-012023-09-30SC363190bus:Director22022-10-012023-09-30SC363190bus:Director32022-10-012023-09-30SC363190bus:Director42022-10-012023-09-30SC363190bus:Director52022-10-012023-09-30SC363190bus:Director72022-10-012023-09-30SC363190bus:FullAccounts2022-10-012023-09-30xbrli:purexbrli:sharesiso4217:GBP