REGISTERED NUMBER: |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2023 |
FOR |
HURRICANE MODULAR COMMERCE LIMITED |
REGISTERED NUMBER: |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2023 |
FOR |
HURRICANE MODULAR COMMERCE LIMITED |
HURRICANE MODULAR COMMERCE LIMITED (REGISTERED NUMBER: 10073658) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 30 April 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 4 |
HURRICANE MODULAR COMMERCE LIMITED |
COMPANY INFORMATION |
for the Year Ended 30 April 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
4 Grovelands |
Boundary Way |
Hemel Hempstead |
Hertfordshire |
HP2 7TE |
HURRICANE MODULAR COMMERCE LIMITED (REGISTERED NUMBER: 10073658) |
BALANCE SHEET |
30 April 2023 |
30.4.23 | 30.4.22 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
Tangible assets | 5 |
CURRENT ASSETS |
Debtors | 6 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year (including convertible debt) |
7 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
8 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 11 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 12 |
Share premium | 13 |
Other reserves | 13 | ( |
) |
Retained earnings | 13 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
HURRICANE MODULAR COMMERCE LIMITED (REGISTERED NUMBER: 10073658) |
BALANCE SHEET - continued |
30 April 2023 |
In accordance with Section 444 of the Companies Act 2006, the Profit and Loss account has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
HURRICANE MODULAR COMMERCE LIMITED (REGISTERED NUMBER: 10073658) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 30 April 2023 |
1. | STATUTORY INFORMATION |
Hurricane Modular Commerce Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The accounts have been prepared on a going concern basis which assumes that the company will continue to trade. The validity of this assumption is dependent on sufficient and continuing financial support being made available by the company's directors, the shareholders, and the creditors. The directors consider this achievable by continued investment into their core products, development of new products enhancing organic growth and maintaining the highest customer experience for partners. |
Post year end further equity finance has been generated demonstrating the investment in the brand and confidence in the growth of the company. |
If the company were unable to continue to trade adjustments would have to be made to reduce the value of assets to their realisable amount, to reclassify fixed assets as current assets, long-term liabilities as current liabilities, and to provide for any further liabilities that may arise. |
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 |
Intangible assets acquired are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. |
Intangible assets comprise primarily of development expenditure incurred internally and externally for the and innovation and advancement of the core products of the business. Such assets are defined as having finite useful lives and the costs are amortised on a straight line basis over their estimated useful lives of 20 years. Intangible assets are stated at cost less amortisation and are reviewed for impairment whenever there is an indication that the carrying value may be impaired. |
HURRICANE MODULAR COMMERCE LIMITED (REGISTERED NUMBER: 10073658) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Fixtures and fittings | - |
Computer equipment | - |
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. Where it is no 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. |
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. |
If the recoverable amount of an asset, or cash generating unit, is estimated to be less than its carrying amount, the carrying amount of the asset, or cash generating unit, is reduced to its recoverable amount. An impairment loss is recognised immediately in the profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. |
Recognised impairment losses are reversed, if and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset, or cash generating unit, is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset, or cash generating unit, in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. |
HURRICANE MODULAR COMMERCE LIMITED (REGISTERED NUMBER: 10073658) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
2. | ACCOUNTING POLICIES - continued |
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, loans from fellow group undertakings, 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. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss account, 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. |
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. |
HURRICANE MODULAR COMMERCE LIMITED (REGISTERED NUMBER: 10073658) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
2. | ACCOUNTING POLICIES - continued |
Research and development |
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Provisions |
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. |
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises. |
Compound instruments |
The component parts of compound instruments issued by the company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangement. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for a similar non-convertible instrument. This amount is recorded as a liability on an amortised cost basis using the effective interest method until extinguished upon conversion or at the instrument's maturity date. The equity component is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognised and included in equity net of income tax effects and is not subsequently remeasured. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
HURRICANE MODULAR COMMERCE LIMITED (REGISTERED NUMBER: 10073658) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
4. | INTANGIBLE FIXED ASSETS |
Software |
costs |
£ |
COST |
At 1 May 2022 |
Additions |
At 30 April 2023 |
AMORTISATION |
At 1 May 2022 |
Amortisation for year |
At 30 April 2023 |
NET BOOK VALUE |
At 30 April 2023 |
At 30 April 2022 |
5. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1 May 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 April 2023 |
DEPRECIATION |
At 1 May 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 April 2023 |
NET BOOK VALUE |
At 30 April 2023 |
At 30 April 2022 |
HURRICANE MODULAR COMMERCE LIMITED (REGISTERED NUMBER: 10073658) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
5. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Computer |
equipment |
£ |
COST |
At 1 May 2022 |
Additions |
At 30 April 2023 |
DEPRECIATION |
At 1 May 2022 |
Charge for year |
At 30 April 2023 |
NET BOOK VALUE |
At 30 April 2023 |
At 30 April 2022 |
6. | DEBTORS |
30.4.23 | 30.4.22 |
as restated |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Other debtors |
Tax |
Value added tax |
Deferred tax asset | - |
Accrued income |
Prepayments |
Amounts falling due after more than one year: |
Deferred tax asset |
Prepayments |
Aggregate amounts |
HURRICANE MODULAR COMMERCE LIMITED (REGISTERED NUMBER: 10073658) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
6. | DEBTORS - continued |
Deferred tax asset |
30.4.23 | 30.4.22 |
as restated |
£ | £ |
Accelerated capital allowances | ( |
) | ( |
) |
Tax losses carried forward |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.4.23 | 30.4.22 |
as restated |
£ | £ |
Bank loans and overdrafts (see note 9) |
Other loans (see note 9) |
Hire purchase contracts (see note 10) |
Trade creditors |
Amounts owed to participating interests |
Social security and other taxes |
Other creditors |
Deferred income |
Accruals |
The company issued 832 convertible loan notes at a discounted value of £176.19 per share during the year. The applicable conversion price is £176.19 on ordinary shares at the date the convertible loan notes were issued. |
The convertible loan notes attract an interest rate of 10%. Interest on the loan notes is expensed in the year and calculated by applying an effective interest rate of 3% to the liability component of the loan notes. The liability component is measured at amortised cost. The difference between the carrying amount of the liability component at the date of issue and the amount reported in the balance sheet represents the effective interest rate less interest paid or accrued to that date. |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.4.23 | 30.4.22 |
as restated |
£ | £ |
Bank loans (see note 9) |
Hire purchase contracts (see note 10) |
HURRICANE MODULAR COMMERCE LIMITED (REGISTERED NUMBER: 10073658) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
9. | LOANS |
An analysis of the maturity of loans is given below: |
30.4.23 | 30.4.22 |
as restated |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Other loans |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
10. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
30.4.23 | 30.4.22 |
as restated |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
30.4.23 | 30.4.22 |
as restated |
£ | £ |
Within one year |
11. | PROVISIONS FOR LIABILITIES |
30.4.23 | 30.4.22 |
as restated |
£ | £ |
Other provisions |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 May 2022 | ( |
) |
Provided during year |
Credit to Profit and Loss account during year | ( |
) |
Balance at 30 April 2023 | ( |
) |
HURRICANE MODULAR COMMERCE LIMITED (REGISTERED NUMBER: 10073658) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
11. | PROVISIONS FOR LIABILITIES - continued |
Other provisions represent amounts undercharged by related parties in relation to services provided to support and aid the cashflow of the company in its infancy. Although the amount can be reliably measured, all amounts are subject to an informal agreement that they will be repaid once the company achieves sustainable profitability and positive cashflow. Accordingly, at present, the timing of the outflows are uncertain. |
12. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.4.23 | 30.4.22 |
value: | as restated |
£ | £ |
Ordinary Shares | £0.0001 | 15 | 14 |
Redeemable preference shares | £0.0001 | - | - |
15 | 14 |
The following fully paid shares were allotted during the period shown below: |
10,248 Ordinary shares of £0.0001 each at £220.24 per share. |
906 Ordinary shares issued at par of £0.0001 each. |
13. | RESERVES |
Retained | Share | Other |
earnings | premium | reserves | Totals |
£ | £ | £ | £ |
At 1 May 2022 | (8,789,831 | ) | 10,444,035 | 1,654,204 |
Prior year adjustment | 2,245,149 | 2,245,149 |
(6,544,682 | ) | 3,899,353 |
Deficit for the year | (959,383 | ) | (959,383 | ) |
Share issue | - | - | 2,257,019 |
Issue of Convertible Loan | - | - | (9,905 | ) | (9,905 | ) |
At 30 April 2023 | (7,504,065 | ) | 12,701,054 | (9,905 | ) | 5,187,084 |
14. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
HURRICANE MODULAR COMMERCE LIMITED (REGISTERED NUMBER: 10073658) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
15. | RELATED PARTY DISCLOSURES |
During the year the company traded with Ascensa Consultants Ltd, a company who s The net value of expenses incurred from Ascensa Consultants Ltd amounted to £225,665 (2022: £215,675). The net amount owed by £22,424). |
During the year the company traded with net amount owed by Hurricane Modular Commerce Limited as at 30 April 2023 amounted to £ £15,900). |
During the year the company traded with DJY International Ltd, a company who shares a common director. No expenses were incurred during the year (2022: £32,715). The net amount owed by Hurricane Modular Commerce Limited as at 30 April 2023 amounted to £Nil (2022: £200). |
During the year the company traded with Modular Commerce Limited as at 30 April 2023 amounted to £ |
Additionally during the year, the company received consultancy services from the directors of the company, and reimbursed expenses, totalling £136,329 (2022: £132,151). |
16. | FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES |
In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements. |
HURRICANE MODULAR COMMERCE LIMITED (REGISTERED NUMBER: 10073658) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
17. | SHARE-BASED PAYMENT TRANSACTIONS |
Hurricane Modular Commerce Limited has a share option scheme for key personnel employed or associated with the successful performance of the Company. These key personnel of the Company were granted options during 2017, 2018, 2019, 2020, 2021, 2022 and 2023. All options lapse on resignation unless the holder is deemed to be a Good Leaver in which case, they need to be exercised with the HMRC's time limit. Furthermore, management has made the decision to restructure the option scheme to the following: |
Expiry date Exercise price 2023 2022 |
31 January 2022 £0.08 250 |
31 March 2021 £0.03 258 |
30 April 2021 £0.03 257 |
30 June 2021 £0.03 257 |
31 July 2021 £0.03 257 |
31 July 2021 £0.03 250 |
30 September 2021 £0.03 257 |
30 November 2021 £0.03 258 |
31 December 2021 £0.01 90 |
Options not yet vested: |
31st December 2018 £0.05 500 500 |
31st March 2019 £0.03 325 325 |
31st March 2020 £0.12 1,175 1,175 |
30th June 2020 £0.08 840 840 |
31st December 2020 £0.12 1,187 |
31 January 2022 £0.08 500 |
30 April 2022 £0.0001 128 |
31 May 2022 £0.0001 129 |
30 June 2022 £0.0001 257 |
30 September 2022 £0.0001 258 |
30 April 2022 £0.0001 128 |
31 May 2022 £0.0001 129 |
30 June 2022 £0.0001 257 |
30 September 2022 £0.0001 258 |
30 April 2022 £0.0001 63 |
30 June 2022 £0.0001 125 |
30 September 2022 £0.0001 62 |
30 September 2022 £0.0001 171 |
31 December 2022 £0.0001 257 |
Additionally, there were 3,309 options granted within nominal prices to be exercised at an undefined future date. |