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REGISTERED NUMBER: 13741239 (England and Wales)
















Financial Statements for the Year Ended 31 December 2022

for


Picsart UK Limited



Picsart UK Limited (Registered number: 13741239)








Contents of the Financial Statements

for the Year Ended 31 December 2022





Page




Company Information  

1




Balance Sheet  

2




Notes to the Financial Statements  

3





Picsart UK Limited



Company Information

for the Year Ended 31 December 2022









DIRECTORS:

C L Foster


Ms L A Kidwai







REGISTERED OFFICE:

International House


44-45 Commerical Street


London


E1 6BD







REGISTERED NUMBER:

13741239 (England and Wales)







AUDITORS:

Mark Arber Limited


Chartered Certified Accountants


& Statutory Auditors


71-75 Shelton Street


London


WC2H 9JQ



Picsart UK Limited (Registered number: 13741239)



Balance Sheet

31 December 2022



31.12.22


31.12.21


Notes

£   

£   


CURRENT ASSETS

Debtors

4

461,514


100



Cash at bank

96,779


-



558,293


100



CREDITORS

Amounts falling due within one year

5

(256,258

)

-



NET CURRENT ASSETS

302,035


100



TOTAL ASSETS LESS CURRENT

LIABILITIES

302,035


100




CAPITAL AND RESERVES

Called up share capital

100


100



Share option reserve

158,246


-



Retained earnings

143,689


-



302,035


100




The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.  


In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.


The financial statements were approved by the Board of Directors and authorised for issue on 31 January 2024 and were signed on its behalf by:






C L Foster - Director




Picsart UK Limited (Registered number: 13741239)



Notes to the Financial Statements

for the Year Ended 31 December 2022


1.

STATUTORY INFORMATION



Picsart UK Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.


2.

ACCOUNTING POLICIES



Basis of preparing the financial statements


These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.    



These financial statements have been drawn up on the going concern basis. The company is dependent upon the support of its parent company, and only customer, in order to meet its working capital requirements. The parent company has provided assurances that this support will continue for a period that exceeds twelve months from the date of approval of these financial statements and the directors believe they will have the funds required to provide this support.



The parent company has incurred periodic net losses and has an accumulated deficit as of December 31, 2022. The parent company believes it has sufficient cash available to fund operations and meet its obligations as they come due. In the event that the parent company does not achieve revenue anticipated in its current operating plan, management has the ability and commitment to reduce operating expenses as necessary. The Company's long-term success is dependent upon its ability to successfully raise additional capital, market its existing services, increase revenues, and, ultimately, to achieve profitable operations.



Related party exemption


The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.



Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.


Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.



Picsart UK Limited (Registered number: 13741239)



Notes to the Financial Statements - continued

for the Year Ended 31 December 2022


2.

ACCOUNTING POLICIES - continued


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.


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.


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 present obligation as a result of a past event for which it is probable that there will be an outflow of economic benefits that can be reasonably estimated.



Share based payments


The employees of the company are entitled to participate in the group share based compensation scheme. Cost is recognised in the financial statements based on the fair value of the options at the date of grant, amortized over the vesting period.



The company has taken the exemption provided in FRS 102 Section 1.12D not to disclose details of share-based payment arrangements concerning equity instruments of another group entity.


3.

EMPLOYEES AND DIRECTORS



The average number of employees during the year was 29 (2021 - NIL ) .


4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR



31.12.22


31.12.21

£   

£   



Amounts owed by group undertakings

451,655


100




Other debtors

9,859


-



461,514


100





Picsart UK Limited (Registered number: 13741239)



Notes to the Financial Statements - continued

for the Year Ended 31 December 2022


5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR



31.12.22


31.12.21

£   

£   



Trade creditors

12,258


-




Taxation and social security

79,253


-




Other creditors

164,747


-



256,258


-




6.

DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006



The Report of the Auditors was unqualified.




As detailed in the notes to the financial statements these financial statements have been drawn up on the going concern basis. The company is dependent upon the support of its parent company, and only customer, in order to meet its working capital requirements. The parent company has provided assurances that this support will continue for a period that exceeds twelve months from the date of approval of these financial statements and the directors believe they will have the funds required to provide this support.



The parent company has incurred periodic net losses and has an accumulated deficit as of December 31, 2022. The parent company believes it has sufficient cash available to fund operations and meet its obligations as they come due. In the event that the parent company does not achieve revenue anticipated in its current operating plan, management has the ability and commitment to reduce operating expenses as necessary. The Company's long-term success is dependent upon its ability to successfully raise additional capital, market its existing services, increase revenues, and, ultimately, to achieve profitable operations.



Following the departure of the financial controller after the year end, the company has lost access to the online banking facility and has been unable to change the bank mandate to regain access. The directors are therefore unable to confirm the cash balance on this account post year end and therefore unable to confirm safe custody of the banking asset. The parent company PicsArt Inc. is providing banking facilities for the company to enable it to meet its working capital requirements and to continue as a going concern.



Our audit opinion in not qualified in respect of these matters.



Mark Arber (Senior Statutory Auditor)


for and on behalf of Mark Arber Limited


7.

OTHER FINANCIAL COMMITMENTS


At the balance sheet date, other financial commitments totalled £Nil (2021: £Nil).

8.

POST BALANCE SHEET EVENTS


Following the departure of the financial controller after the year end, the company has lost access to the online banking facility and has been unable to change the bank mandate to regain access. The directors are therefore unable to confirm the cash balance on this account post year end and therefore unable to confirm safe custody of the banking asset.

The parent company, PicsArt Inc. is providing banking facilities for the company to enable it to meet its working capital requirements and to continue as a going concern.


Picsart UK Limited (Registered number: 13741239)



Notes to the Financial Statements - continued

for the Year Ended 31 December 2022


9.

ULTIMATE CONTROLLING PARTY



The company is a wholly owned subsidiary of Picsart, Inc., a company incorporated in the United States of America.



The ultimate parent company is Picsart, Inc. a company incorporated in the United States of America. The smallest group of which the company is a member and for which group accounts are prepared is headed by Picsart, Inc. with its registered office of 1010 South Federel Highway, Optima Onyx Tower, Suite 1103, Hallandale Beach, FL 33009, United States.



The ultimate controlling party is H Avoyan.


10.

SHARE-BASED PAYMENT TRANSACTIONS


The company has taken the exemption provided in FRS 102 Section 1.12D not to disclose details of share-based payment arrangements concerning equity instruments of another group entity.