Company registration number 12815801 (England and Wales)
PAIGE.AI LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
PAIGE.AI LTD
CONTENTS
Page
Balance sheet
5
Statement of changes in equity
6
Notes to the financial statements
7 - 15
PAIGE.AI LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PAIGE.AI LTD
- 1 -
Opinion
We have audited the financial statements of Paige.AI Ltd (the 'company') for the year ended 31 December 2022 which comprise , the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 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 Auditor's 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 UK, including the FRC’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 relating to going concern
We draw attention to note 1.2 in the financial statements, which indicates that the company is reliant on the support of its immediate parent company, Paige.AI Inc. As stated in note 1.2, significant doubt currently exists as to whether Paige.AI Inc could provide the required support necessary if called upon. These events or conditions 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.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in preparation of the financial statements is appropriate.
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 auditor's 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the directors' report for the financial year 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.
PAIGE.AI LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PAIGE.AI LTD
- 2 -
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 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; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
Auditor's 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 auditor's 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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
PAIGE.AI LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PAIGE.AI LTD
- 3 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
PAIGE.AI LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PAIGE.AI LTD
- 4 -
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 auditor's 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.
Tom Mullard ACA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
31 January 2024
Chartered Accountants
Statutory Auditor
Azets Audit Services
6th Bank House
Cherry Street
Birmingham
B2 5AL
PAIGE.AI LTD
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 5 -
2022
2021
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
6
25,155
25,270
Current assets
Debtors
7
734,498
373,609
Cash at bank and in hand
169,792
112,030
904,290
485,639
Creditors: amounts falling due within one year
8
(321,830)
(253,259)
Net current assets
582,460
232,380
Net assets
607,615
257,650
Capital and reserves
Called up share capital
1
1
Share premium account
149,999
149,999
Share based payment reserve
300,967
82,609
Profit and loss reserves
156,648
25,041
Total equity
607,615
257,650
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 31 January 2024 and are signed on its behalf by:
Mr W A Moye
Director
Company Registration No. 12815801
PAIGE.AI LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
Called up share capital
Share premium account
Share based payment reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
As restated for the period ended 31 December 2021:
Balance at 16 August 2020
Period ended 31 December 2021:
Profit and total comprehensive income for the period
-
-
-
25,041
25,041
Issue of share capital
1
149,999
-
-
150,000
Share based payment charge
-
-
82,609
82,609
Balance at 31 December 2021
1
149,999
82,609
25,041
257,650
Period ended 31 December 2022:
Profit and total comprehensive income for the period
-
-
-
131,607
131,607
Share based payment charge
-
-
218,358
218,358
Balance at 31 December 2022
1
149,999
300,967
156,648
607,615
PAIGE.AI LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
1
Accounting policies
Company information
Paige.AI Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 2 Minton Place, Victoria Road, Bicester, Oxfordshire, OX26 6QB.
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.
These financial statements are prepared for the year ended 31 December 2022. The comparative period covers the 16 month period ended 31 December 2021.
1.2
Going concern
The financial statements have been prepared on a going concern basis, which assumes that the company will continue in operational existence for the foreseeable future, being at least 12 months from the date of approval of these financial statements.true
A letter of support has been received from the company’s parent company, Paige.AI Inc, which provides continued support if required for at least 12 months from the signing of the financial statements, enabling the company to meet it’s liabilities as and when they fall due. The letter of support also confirms that Paige.AI Inc will not recall any intercompany balances due by Paige.AI Ltd where to do so would compromise the long-term viability of Paige.AI Ltd.
On the basis of their assessment of the company’s financial position, letter of support in place and enquiries made of the directors of Paige.AI Inc, the company’s immediate parent company, the directors have a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future and therefore continue to adopt the going concern basis of accounting in preparing the financial statements.
However, during their enquiries, the directors noted that Paige.AI Inc is reliant on further funding within the next 12 months in order to ensure available cash flow and the ability to support the company in the event it is required to do so. The Paige.AI group continues to conduct research and development activity in order to develop it’s product offering and ensure that this is viable for the future generation of revenue. As such, the group is currently reliant on further external financing to fund this stage of its lifecycle and ensure available cash to meet it’s liabilities as they fall due. Early activity to source this funding has been undertaken with interested parties and the parent company has experience of raising such financing through past rounds of funding. The expectation is that the funding round will be completed by the end of 2024.
Based on the reasons set out above, a material uncertainty related to going concern exists as to whether Paige.AI Inc are able to provide financial support to the company if required to do so due to their own need to raise further external financing.
The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.
PAIGE.AI LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 8 -
1.3
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:
Plant and machinery etc
3 year straight line
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.
1.4
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
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 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.
1.5
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. Bank overdrafts are shown within borrowings in current liabilities.
1.6
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.
PAIGE.AI LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 9 -
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.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 fellow group companies 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.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
PAIGE.AI LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 10 -
1.7
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.
1.8
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.
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.
1.9
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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 Black-Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
PAIGE.AI LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 11 -
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
1.12
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.
1.13
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.
1.14
The comparative figures have been restated to include adjustments relating to the transfer pricing agreement between the company and its parent. Further information is contained within note 15.
1.15
On behalf of its parent, Paige.AI Inc the company provides services within specific contracted regions and is remunerated by its parent for these services. Other operating income is based on a cost plus service agreement and is recognised in the period the services are incurred.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Share option valuation
The company implements a share option scheme for employees.
Calculation of the share based payment expense relies on calculating the value of the options at the grant date. This is subject to uncertainty and management have used the widely accepted Black-Scholes model to estimate this. Management have appointed independent experts to assist in determining the valuation methodology.
PAIGE.AI LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
3
Auditor's remuneration
Year ended
Period ended
31 December
31 December
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
22,750
16,000
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
Year ended
Period ended
31 December
31 December
2022
2021
Number
Number
Total
18
13
5
Taxation
Year ended
Period ended
31 December
31 December
2022
2021
£
£
as restated
Current tax
UK corporation tax on profits for the current period
64,840
16,808
Deferred tax
Origination and reversal of timing differences
(68,618)
Total tax (credit)/charge
(3,778)
16,808
From 1st April 2023 the main rate of corporation tax is set to increase from 19% to 25%.
This was substantially enacted at the reporting date and the deferred tax asset was measured based on this tax rate.
PAIGE.AI LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
6
Tangible fixed assets
Plant and machinery
£
Cost
At 1 January 2022
27,351
Additions
11,711
At 31 December 2022
39,062
Depreciation and impairment
At 1 January 2022
2,081
Depreciation charged in the year
11,826
At 31 December 2022
13,907
Carrying amount
At 31 December 2022
25,155
At 31 December 2021
25,270
7
Debtors
2022
2021
Amounts falling due within one year:
£
£
as restated
Amounts owed by group undertakings
539,774
348,540
Other debtors
30,374
23,415
Prepayments and accrued income
95,732
1,654
665,880
373,609
Deferred tax asset (note 9)
68,618
734,498
373,609
Amounts due from group undertakings are unsecured, interest free and repayable on demand.
8
Creditors: amounts falling due within one year
2022
2021
£
£
as restated
Trade creditors
2,400
12,284
Corporation tax
81,648
16,808
Other creditors
237,782
224,167
321,830
253,259
PAIGE.AI LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
9
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2022
Balances:
£
£
Accelerated capital allowances
(6,289)
-
Share based payments
74,907
-
68,618
-
2022
Movements in the year:
£
Liability at 1 January 2022
-
Credit to profit or loss
(68,618)
Asset at 31 December 2022
(68,618)
10
Share-based payment transactions
Number of share options
Weighted average exercise price
2022
2021
2022
2021
Number
Number
£
£
Outstanding at 1 January 2022
131,700
6.87
-
Granted
62,000
137,700
7.85
6.07
Forfeited
(14,500)
(6,000)
7.85
6.89
Outstanding at 31 December 2022
179,200
131,700
7.13
6.03
Exercisable at 31 December 2022
-
-
-
The options outstanding at 31 December 2022 had an exercise price ranging from £3.94 to £7.85 (2021: £3.46 to £6.89), and a remaining contractual life of between 7.5 and 9.3 years (2021: 3.7 years).
Liabilities and expenses
During the year, the company recognised total share-based payment expenses of £218,358 (2021: £81,268) which related to equity settled share based payment transactions.
PAIGE.AI LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
11
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.
Statutory Auditor:
Azets
12
Financial commitments, guarantees and contingent liabilities
The company's parent company Paige.AI Inc has entered into a letter of credit on behalf of Paige.AI Ltd amounting to £174,291 (2021: £100,000).
13
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:
2022
2021
£
£
Land and buildings
55,080
14
Related party transactions
The company has chosen not to disclose transactions entered into between wholly owned group companies in line with FRS102 paragraph 33.1A.
15
Parent company
The ultimate parent company is Paige.AI Inc, a company registered in the United States of America (Address: Floor 37, 11 Times Square, New York, NY 10036).
There is no ultimate controlling party.
16
Prior period adjustment
The prior period has been restated to provide for a management recharge between the company and its parent. The inclusion of this recharge is considered appropriate to match the income against the expenses in the period to which it related and ensure a true and fair view of both the current and comparative periods is presented.
The effect of the restatement on the profit and loss is as follows:
Other operating income (£1,656,942)
Corporation tax £16,808
The effect on the balance sheet is as follows:
Amounts owed by group undertakings £1,656,942
Corporation tax payable (£16,808)
2022-12-312022-01-01false31 January 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedMs C SegroMr D AndreassonMr W A MoyeMr L J GradyMr P W Hamiltonfalse128158012022-01-012022-12-31128158012022-12-31128158012021-12-3112815801core:OtherPropertyPlantEquipment2022-12-3112815801core:OtherPropertyPlantEquipment2021-12-3112815801core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3112815801core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3112815801core:ShareCapital2022-12-3112815801core:ShareCapital2021-12-3112815801core:SharePremium2022-12-3112815801core:SharePremium2021-12-3112815801core:OtherMiscellaneousReserve2022-12-3112815801core:OtherMiscellaneousReserve2021-12-3112815801core:RetainedEarningsAccumulatedLosses2022-12-3112815801core:RetainedEarningsAccumulatedLosses2021-12-3112815801core:ShareCapital2020-08-1512815801core:SharePremium2020-08-1512815801core:OtherMiscellaneousReserve2020-08-1512815801core:RetainedEarningsAccumulatedLosses2020-08-15128158012020-08-1512815801bus:Director32022-01-012022-12-3112815801core:RetainedEarningsAccumulatedLosses2020-08-162021-12-31128158012020-08-162021-12-3112815801core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3112815801core:ShareCapital2020-08-162021-12-3112815801core:SharePremium2020-08-162021-12-3112815801core:ComputerEquipment2022-01-012022-12-3112815801core:UKTax2022-01-012022-12-3112815801core:UKTax2020-08-162021-12-3112815801core:OtherPropertyPlantEquipment2021-12-3112815801core:OtherPropertyPlantEquipment2022-01-012022-12-3112815801core:CurrentFinancialInstruments2022-12-3112815801core:CurrentFinancialInstruments2021-12-3112815801bus:PrivateLimitedCompanyLtd2022-01-012022-12-3112815801bus:SmallCompaniesRegimeForAccounts2022-01-012022-12-3112815801bus:FRS1022022-01-012022-12-3112815801bus:Audited2022-01-012022-12-3112815801bus:Director12022-01-012022-12-3112815801bus:Director22022-01-012022-12-3112815801bus:Director42022-01-012022-12-3112815801bus:Director52022-01-012022-12-3112815801bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP