Caseware UK (AP4) 2022.0.179 2022.0.179 2022-12-312022-12-31Tangible assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income. The depreciation expense is charged to administrative expenses within the Statement of Comprehensive Income.The immediate and ultimate parent undertaking is Healthy.IO Ltd., a Company incorporated in Israel, whose registered office is 8 Yizhak Sadeh 2,. Tel Aviv, Israel. The largest and smallest group of which Healthy.IO (UK) Ltd. is a member and for which consolidated financial statements are drawn up is that headed by Healthy.IO Ltd., a company incorporated in Israel. The registered office of Healthy.IO Ltd. is 8 Yizhak Sadeh 2,. Tel Aviv, Israel. Consolidated financial statements for the year ended 31 December 2022 are publicly available and can be obtained from 8 Yizhak Sadeh 2,. Tel Aviv, Israel. The Director believes there is no one controlling party.truetruetruetruetruetruetrue2022-01-01false9560false 10996079 2022-01-01 2022-12-31 10996079 2021-01-01 2021-12-31 10996079 2022-12-31 10996079 2021-12-31 10996079 2021-01-01 10996079 1 2022-01-01 2022-12-31 10996079 1 2021-01-01 2021-12-31 10996079 d:Director1 2022-01-01 2022-12-31 10996079 d:RegisteredOffice 2022-01-01 2022-12-31 10996079 e:Buildings e:LongLeaseholdAssets 2022-01-01 2022-12-31 10996079 e:Buildings e:LongLeaseholdAssets 2022-12-31 10996079 e:Buildings e:LongLeaseholdAssets 2021-12-31 10996079 e:FurnitureFittings 2022-01-01 2022-12-31 10996079 e:FurnitureFittings 2022-12-31 10996079 e:FurnitureFittings 2021-12-31 10996079 e:FurnitureFittings e:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 10996079 e:OfficeEquipment 2022-01-01 2022-12-31 10996079 e:OfficeEquipment 2022-12-31 10996079 e:OfficeEquipment 2021-12-31 10996079 e:OfficeEquipment e:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 10996079 e:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 10996079 e:CurrentFinancialInstruments 2022-01-01 2022-12-31 10996079 e:CurrentFinancialInstruments 2022-12-31 10996079 e:CurrentFinancialInstruments 2021-12-31 10996079 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 10996079 e:CurrentFinancialInstruments e:WithinOneYear 2021-12-31 10996079 e:UKTax 2022-01-01 2022-12-31 10996079 e:UKTax 2021-01-01 2021-12-31 10996079 e:ShareCapital 2022-01-01 2022-12-31 10996079 e:ShareCapital 2022-12-31 10996079 e:ShareCapital 2021-01-01 2021-12-31 10996079 e:ShareCapital 2021-12-31 10996079 e:ShareCapital 2021-01-01 10996079 e:OtherMiscellaneousReserve 2022-01-01 2022-12-31 10996079 e:OtherMiscellaneousReserve 2022-12-31 10996079 e:OtherMiscellaneousReserve 1 2022-01-01 2022-12-31 10996079 e:OtherMiscellaneousReserve 2021-01-01 2021-12-31 10996079 e:OtherMiscellaneousReserve 2021-12-31 10996079 e:OtherMiscellaneousReserve 2021-01-01 10996079 e:OtherMiscellaneousReserve 1 2021-01-01 2021-12-31 10996079 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 10996079 e:RetainedEarningsAccumulatedLosses 2022-12-31 10996079 e:RetainedEarningsAccumulatedLosses 1 2022-01-01 2022-12-31 10996079 e:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 10996079 e:RetainedEarningsAccumulatedLosses 2021-12-31 10996079 e:RetainedEarningsAccumulatedLosses 2021-01-01 10996079 e:RetainedEarningsAccumulatedLosses 1 2021-01-01 2021-12-31 10996079 e:AcceleratedTaxDepreciationDeferredTax 2022-12-31 10996079 e:AcceleratedTaxDepreciationDeferredTax 2021-12-31 10996079 e:OtherDeferredTax 2022-12-31 10996079 e:OtherDeferredTax 2021-12-31 10996079 d:OrdinaryShareClass1 2022-01-01 2022-12-31 10996079 d:OrdinaryShareClass1 2022-12-31 10996079 d:OrdinaryShareClass1 2021-12-31 10996079 d:FRS102 2022-01-01 2022-12-31 10996079 d:Audited 2022-01-01 2022-12-31 10996079 d:FullAccounts 2022-01-01 2022-12-31 10996079 d:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 10996079 e:WithinOneYear 2022-12-31 10996079 e:WithinOneYear 2021-12-31 10996079 e:BetweenOneFiveYears 2022-12-31 10996079 e:BetweenOneFiveYears 2021-12-31 10996079 2 2022-01-01 2022-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 10996079









HEALTHY. IO (UK) LTD









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

 
HEALTHY. IO (UK) LTD
 
 
COMPANY INFORMATION


Director
J Adiri 




Registered number
10996079



Registered office
The King's Fund
11-13 Cavendish Square

London

W1G 0AN




Independent auditor
Mazars LLP
Chartered Accountants & Statutory Auditor

6 Dominus Way

Meridian Business Park

Leicester

LE19 1RP





 
HEALTHY. IO (UK) LTD
 

CONTENTS



Pages
Strategic Report
 
1 - 2
Director's Report
 
3 - 5
Independent Auditor's Report
 
6 - 9
Statement of Comprehensive Income
 
10
Statement of Financial Position
 
11
Statement of Changes in Equity
 
12
Notes to the Financial Statements
 
13 - 24


 
HEALTHY. IO (UK) LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

Introduction
 
The Director present their Strategic Report, Director's Report and the audited financial statements of the Company for the year ended 31 December 2022.

Principal activities

The principal activity of the Company is the provision of remote clinical testing and services enabled by smartphone technology.
The Company transforms the smartphone camera into a medical device to deliver healthcare faster. The Company's products provide clinical results at critical moments, syncing healthcare with life events. The Company's at-home urinalysis and digitized wound care services allow people to perform tests at their convenience and help healthcare systems to manage various health conditions better.

Business review
 
The operating loss, before finance expenses, other income and taxation, for the year, amounted to £105,348 (2021 - profit of  £17,198).  
The operating results reflect a business which still very much remains in its early development phase, and one which is continuing to invest in its growth potential for future years.  

Principal risks and uncertainties
 
The Company's operations expose it to a variety of financial risks, including exchange rate risk and credit risk. Exposures to these risks are monitored, reported and mitigated according to policies and procedures set by the ultimate parent company, Healthy.io LTD (Israel).  
Credit risk
The Company's principal financial assets are bank balances and cash, trade and other debtors. The Company's credit risk is primarily attributable to its trade debtors. The amounts presented in the Statement of Financial Position are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The Director considers that these policies are sufficient to manage the credit risk to which the Company is exposed.
Exchange rate risk
The Company is exposed to exchange rate risk as a result of its operations. The Company does not utilize forward foreign exchange contracts but does actively monitor the exposure arising from exchange rate risk and will enter into contracts if considered necessary.

Ukraine
The ongoing conflict in Ukraine has no impact on the Company's operations. 
Gaza (Israel-Hamas)
The ongoing conflict in the Gaza strip between Israel and the terror organization Hamas has no impact on the Company's operations. The conflict has no implications on the Company’s parent company which is based in Israel.

Page 1

 
HEALTHY. IO (UK) LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Outlook

The key elements of the Company's strategy include:
Maintaining market leadership and innovation through development and exploiting synergies within Company products to enhance product offerings,
Striving to generate strong operating cash flows, and
Exploiting the growth opportunities arising from a quality and unrivaled international customer.

Future developments

The Director expects the Company to continue the successful growth and development of the business in the forthcoming year.   

Financial key performance indicators

The Board monitors the progress of the Company strategy and the individual strategic elements by reference to certain financial and non-financial key performance indicators ('KPIs'). 

2022
2021
Change
        £
        £
     %    
Turnover

9,584,130

5,617,763

71
 
 
Gross profit

8,780,044

4,897,611

79
 
 
Operating (loss)/profit (before Finance expenses, other income, and taxation)

(105,348)

17,198

 
 


This report was approved by the board and signed on its behalf by:



J Adiri
Director

Date: 11 March 2024

Page 2

 
HEALTHY. IO (UK) LTD
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The Director presents his report and the audited financial statements for the year ended 31 December 2022.

Director's responsibilities statement

The Director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the Director to prepare financial statements for each financial year. Under that law the Director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under Company law the Director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the Director is required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent; 

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The operating loss, before finance expenses, other income and taxation, for the year, amounted to £105,348 (2021 - profit of  £17,198).  

The Director did not recommend the payment of a dividend during the current or prior year.

Director

The Director who served during the year and up until the date of this report, unless otherwise stated, was:

J Adiri 

Matters covered in the Strategic Report

As permitted by Paragraph 1A of Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, certain matters which are required to be disclosed in the Director's Report have been omitted as they are included in the Strategic Report. These matters relate to principal activities, business review, principal risk and uncertainties, future developments, financial key performance indicators and other key performance indicators.

Page 3

 
HEALTHY. IO (UK) LTD
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Disclosure of information to auditor

The Director at the time when this Director's Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Going concern

The Company's business activities, together with an assessment of the various risks faced by the Company and the factors likely to affect the Company's future development and position, are noted within the Strategic report.
 
The Company meets its day-to-day working capital requirements through its cash reserves and on-going support form it’s parent company Healthy.io Limited. The parent company have indicated their willingness to continue supporting the Company, as required.
 
The Director has reviewed the busines forecasts and budgets for a period of 12 months from the date of approval of these financial statements. These forecasts, taking account of reasonably possible changes in trading performance, arising out of current economic uncertainties, and making reasonable assumptions about exchange rate fluctuations, show that the Company should be able to operate within its existing facilities, at least 12 months from the date of signing the annual report and financial statements.
On the basis of their assessment of the Company's financial position, risks faced  and confirmations' received from the Director of the Company in respect of ongoing support, the Company's Director has a reasonable expectation that the Company has adequate resources to continue to operate for the foreseeable future and adopt the going concern basis in preparing the annual report and accounts.
The parent company is committed to supporting the Company to meet its obligations as and when they fall due for at least 12 months from the date of signing the financial statements.

Economic impact of global events

UK businesses are currently facing many uncertainties such as the consequences of Brexit, COVID-19, environmental sustainability and geopolitical events such as the Russian invasion of Ukraine. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, rising interest rates, labour shortages, disrupted supply chains and new ways of working. 
The Director has carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures, and have concluded that these are non-adjusting events with the greatest impact on the business expected to be from the economic ripple effect on the global economy. The Director has taken account of these potential impacts in his going concern assessment.
The Company continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may provide to the business.

Auditor

The auditor, Mazars LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 4

 
HEALTHY. IO (UK) LTD
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

This report was approved by the board and signed on its behalf.
 





J Adiri
Director

Date: 11 March 2024

Page 5

 
HEALTHY. IO (UK) LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEALTHY. IO (UK) LTD
 

Opinion

We have audited the financial statements of Healthy. IO (UK) Ltd (the ‘Company’) for the year ended 31 December 2022 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and Notes to the financial statements, including a summary of significant accounting policies. 
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 result 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.

Basis for opinion

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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Director with respect to going concern are described in the relevant sections of this report.

Page 6

 
HEALTHY. IO (UK) LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEALTHY. IO (UK) LTD
 

Other information

The other information comprises the information included in the annual report, other than the financial statements and our Auditor’s Report thereon. The Director is 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 the audit:
 
the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Director's Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In 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 Strategic Report or the Director's 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 Director's remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit; or
• the Director was 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 Director's Report and    from the requirement to prepare a Strategic Report.
 


Page 7

 
HEALTHY. IO (UK) LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEALTHY. IO (UK) LTD
 

Responsibilities of Director

As explained more fully in the Director's Responsibilities Statement set out on page 3, the Director is 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 Director determines 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 Director is 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 Director intends either to liquidate the Company or to cease operations, or has 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.
 
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
 
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. 

Based on our understanding of the Company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud.  

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation and the Companies Act 2006. 
Page 8

 
HEALTHY. IO (UK) LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEALTHY. IO (UK) LTD
 

In addition, we evaluated the Director's and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, revenue recognition (which we pinpointed to the cut off assertion) and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the Director and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of the audit report

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.




Stephen English (Senior statutory auditor)

  
for and on behalf of

Mazars LLP
Chartered Accountants and Statutory Auditor 
6 Dominus Way
Meridian Business Park
Leicester
LE19 1RP

11 March 2024
Page 9

 
HEALTHY. IO (UK) LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
Note
£
£

  

Turnover
 4 
9,584,130
5,617,763

Cost of sales
  
(804,086)
(720,152)

Gross profit
  
8,780,044
4,897,611

Administrative expenses
  
(8,885,392)
(4,880,413)

Operating (loss)/profit
 5 
(105,348)
17,198

Interest receivable and similar income
 9 
1,545
-

(Loss)/profit before tax
  
(103,803)
17,198

Tax on (loss)/profit
 10 
(189,159)
2,337

(Loss)/profit for the financial year
  
(292,962)
19,535

Other comprehensive income for the year
  

Share based payment
 5 
385,269
207,617

Total comprehensive income for the year
  
92,307
227,152

The notes on pages 13 to 24 form part of these financial statements.

Page 10

 
HEALTHY. IO (UK) LTD
REGISTERED NUMBER: 10996079

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 11 
149,943
248,559

  

Current assets
  

Stocks
 12 
662,782
538,247

Debtors: amounts falling due within one year
 13 
2,396,208
4,450,606

Cash at bank and in hand
 14 
1,958,697
871,054

  
5,017,687
5,859,907

Creditors: amounts falling due within one year
 15 
(4,449,310)
(5,492,320)

Net current assets
  
 
 
568,377
 
 
367,587

Total assets less current liabilities
  
718,320
616,146

Provisions for liabilities
  

Deferred tax
 16 
(9,867)
-

  
 
 
(9,867)
 
 
-

Net assets
  
708,453
616,146


Equity
  

Called up share capital 
 17 
100
100

Other reserves
 18 
956,342
571,073

Retained earnings
 18 
(247,989)
44,973

Total equity
  
708,453
616,146


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 11 March 2024.




J Adiri
Director

The notes on pages 13 to 24 form part of these financial statements.

Page 11

 
HEALTHY. IO (UK) LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Share based payment reserve
Retained earnings
Total equity

£
£
£
£

At 1 January 2022
100
571,073
44,973
616,146


Comprehensive income for the year

Loss for the year
-
-
(292,962)
(292,962)

Share based payment movement
-
385,269
-
385,269
Total comprehensive income for the year
-
385,269
(292,962)
92,307


At 31 December 2022
100
956,342
(247,989)
708,453



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021


Called up share capital
Share based payment reserve
Retained earnings
Total equity

£
£
£
£

At 1 January 2021
100
363,456
25,438
388,994


Comprehensive income for the year

Profit for the year
-
-
19,535
19,535

Share based payment movement
-
207,617
-
207,617
Total comprehensive income for the year
-
207,617
19,535
227,152


At 31 December 2021
100
571,073
44,973
616,146


The notes on pages 13 to 24 form part of these financial statements.

Page 12

 
HEALTHY. IO (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

Healthy. IO (UK) Limited (the "Company") is a private company limited by shares, incorporated in England and Wales. The Company's registered number is 10996079. The address of the Company's registered office is The King's Fund, 11-13 Cavendish Square, London, England, W1G 0AN.
The Company's principal activity during the year continued to be the provision of remote clinical testing and services enabled by smartphone technology.
The Company's functional and presentational currency is Pounds Sterling (£) and the financial statements are rounded to the nearest pound. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Healthy.IO Ltd. as at 31 December 2022 and these financial statements may be obtained from 8 Yizhak Sadeh 2,. Tel Aviv, Israel.

Page 13

 
HEALTHY. IO (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.3

Going concern

The Company's business activities, together with an assessment of the various risks faced by the Company and the factors likely to affect the Company's future development and position, are noted within the Strategic report.
 
The Company meets its day-to-day working capital requirements through its cash reserves and on-going support form it’s parent company Healthy.io Limited. The parent company have indicated their willingness to continue supporting the Company as required.
 
The Director has reviewed the business' forecasts and budgets for a period of 12 months from the date of approval of these financial statements. These forecasts, taking account of reasonably possible changes in trading performance, arising out of current economic uncertainties, and making reasonable assumptions about exchange rate fluctuations, show that the Company should be able to operate within its existing facilities, at least 12 months from the date of signing the annual report and financial statements.
On the basis of their assessment of the Company's financial position, risks faced  and confirmations' received from the Director of the Company in respect of ongoing support, the Company's Director has a reasonable expectation that the Company has adequate resources to continue to operate for the foreseeable future and adopt the going concern basis in preparing the annual report and accounts.
The parent company is committed to supporting the Company to meet its obligations as and when they fall due for at least 12 months from the date of signing the financial statements.

  
2.4

Foreign currency translation

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges.

Page 14

 
HEALTHY. IO (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.5

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes and appropriate adjustments to reflect transfer pricing arrangements. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.6

Interest receivable and similar income

Interest receivable and similar income is recognised in the Statement of Comprehensive Income using the effective interest method.

  
2.7

Pensions

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the Statement of Comprehensive Income over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each Statement of Financial Position date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

Page 15

 
HEALTHY. IO (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the the Statement of Financial Position date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the Statement of Financial Position date.

 
2.10

Tangible assets

Tangible assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Leasehold improvements
-
10 years
Fixtures and fittings
-
3 years
Computer equipment
-
3 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.
The depreciation expense is charged to administrative expenses within the Statement of Comprehensive Income.

Page 16

 
HEALTHY. IO (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each Statement of Financial Position date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment.

 
2.13

Cash

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. 

 
2.15

Financial instruments

The Company only enters into basic financial instrument transactions which result in the recognition of financial assets and liabilities like trade and other debtors and creditors, and loans to related parties.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the Company’s accounting policies, the Director is required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Critical judgements and estimation uncertainty
Management uses judgment and estimates in the valuation of share based payments awarded to certain employees, using appropriate valuation methodologies as outlined in note 2.8. These derive a valuation of the awards made to employees applicable for the period under review and are included in wages and salaries in the Statement of Comprehensive Income and the share based payment reserve in equity.

Page 17

 
HEALTHY. IO (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

4.


Turnover

The whole of the turnover is attributable to the principal activity.


5.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2022
2021
£
£

Depreciation of tangible fixed assets
91,321
63,107

Foreign currency exchange differences
232,254
31,559

Share-based payment expenses (note 7)
385,269
207,617


6.
Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2022
2021

£
£


Fees payable to the Company's auditor for the audit of the Company's annual financial statements
32,000
15,000

Fees payable to the Company's auditor in respect of:


Taxation compliance services
4,000
2,500

All other services
1,700
1,450


7.


Employees

Staff costs were as follows:


2022
2021
£
£

Wages and salaries
4,534,883
2,548,990

Social security costs
489,506
280,974

Share-based payment expenses (note 5)
385,269
207,617

Cost of defined contribution scheme
140,381
79,012

5,550,039
3,116,593


The average monthly number of employees, including Director, during the year was 95 (2021 - 60).

Page 18

 
HEALTHY. IO (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

8.


Director's remuneration

The Director is paid by the parent Company Healthy.IO Ltd. Thus, there is no remuneration paid to the Director from the Company  in the year 31 December 2022 (2021 - £Nil).





9.


Interest receivable and similar income

2022
2021
£
£


Other interest receivable
1,545
-


10.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
85,316
27,076

Adjustments in respect of previous periods
3,371
-


88,687
27,076


Total current tax
88,687
27,076

Deferred tax


Origination and reversal of timing differences
100,472
(25,585)

Changes to tax rates
-
(15,605)

Other difference
-
11,777

Total deferred tax
100,472
(29,413)


Tax on (loss)/profit
189,159
(2,337)
Page 19

 
HEALTHY. IO (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2021 - lower than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


(Loss)/profit on ordinary activities before tax
(103,803)
17,198


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
(19,723)
3,268

Effects of:


Expenses not deductible for tax purposes
81,732
40,246

Other timing differences
127,150
(45,851)

Total tax credit for the year
189,159
(2,337)


Factors that may affect future tax charges

The UK Government announced in the 2021 budget that from 1 April 2023, the rate of corporation tax in the United Kingdom will increase from 19% to 25%.

Page 20

 
HEALTHY. IO (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

11.


Tangible assets





Leasehold improvements
Fixtures and fittings
Computer equipment
Total

£
£
£
£



Cost 


At 1 January 2022
35,523
99,547
200,973
336,043


Additions
-
1,408
6,222
7,630


Disposals
-
(24,377)
(3,240)
(27,617)



At 31 December 2022

35,523
76,578
203,955
316,056



Depreciation


At 1 January 2022
5,676
37,944
43,864
87,484


Charge for the year
3,552
22,238
65,531
91,321


Disposals
-
(11,648)
(1,044)
(12,692)



At 31 December 2022

9,228
48,534
108,351
166,113



Net book value



At 31 December 2022
26,295
28,044
95,604
149,943



At 31 December 2021
29,847
61,603
157,109
248,559


12.


Stocks

2022
2021
£
£

Finished goods
662,782
538,247


Page 21

 
HEALTHY. IO (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

13.


Debtors

2022
2021
£
£


Trade debtors
2,217,980
2,634,555

Amounts owed by group undertakings
-
1,427,841

Other debtors
130,194
202,869

Prepayments and accrued income
48,034
94,736

Deferred taxation (note 16)
-
90,605

2,396,208
4,450,606


Amounts owed by group undertakings are unsecured, interest free and repayable on demand. 


14.


Cash and cash equivalents

2022
2021
£
£

Cash at bank and in hand
1,958,697
871,054



15.


Creditors: Amounts falling due within one year

2022
2021
£
£

Trade creditors
51,813
85,143

Amounts owed to group undertakings
155,890
-

Corporation tax
102,442
13,755

Other taxation and social security
335,199
197,440

Other creditors
46,444
20,658

Accruals and deferred income
3,757,522
5,175,324

4,449,310
5,492,320


Amounts owed to group undertakings are unsecured, interest free and repayable on demand. 

Page 22

 
HEALTHY. IO (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

16.


Deferred taxation




2022
2021


£

£






At beginning of year
90,605
49,415


Charged to the Statement of Comprehensive Income
(100,472)
41,190



At end of year
(9,867)
90,605

The deferred taxation balance is made up as follows:

2022
2021
£
£


Fixed asset timing differences
(30,049)
(54,678)

Short term timing differences
20,182
145,283

(9,867)
90,605


17.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



100 (2021 - 100) Ordinary shares of £1.00 each
100
100

The Company has one class of ordinary shares which carry voting rights but no right to fixed income.



18.


Reserves

Retained earnings

Retained earnings represents the cumulative profit and losses of the Company, less the payment of dividends. 
Share based payment reserve
The Share based payment reserve represents the cumulative charge in respect of the share options awarded to employees of the Company. 

Page 23

 
HEALTHY. IO (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

19.


Share-based payments

The Company operates a Share Option Scheme for the benefit of certain employees. The options are granted over the shares of the parent undertaking with an exercise price equal to the actual market value of each share as at the date of grant and can only be exercised while the option holder remains an employee of the Company and in limited circumstances.


20.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £140,381 (2021 - £79,012). Contributions totalling £38,093 (2021 - £20,658) were payable to the fund at the Statement of Financial Position date and are included in other creditors.


21.


Commitments under operating leases

At 31 December 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2022
2021
£
£


Not later than 1 year
65,640
30,795

Later than 1 year and not later than 5 years
109,400
-

175,040
30,795


22.


Related party transactions

The Company has taken advantage of the exemption available in accordance with Section 33 'Related party disclosure' of FRS 102 not to disclose transactions entered into between two or more members of a group that are wholly owned.


23.


Immediate and ultimate patent undertaking

The immediate and ultimate parent undertaking is Healthy.IO Ltd., a Company incorporated in Israel, whose registered office is 8 Yizhak Sadeh 2,. Tel Aviv, Israel.
The largest and smallest group of which Healthy.IO (UK) Ltd. is a member and for which consolidated financial statements are drawn up is that headed by Healthy.IO Ltd., a company incorporated in Israel. The registered office of Healthy.IO Ltd. is 8 Yizhak Sadeh 2,. Tel Aviv, Israel. Consolidated financial statements for the year ended 31 December 2022 are publicly available and can be obtained from  8 Yizhak Sadeh 2,. Tel Aviv, Israel.


24.


Controlling party

The Director believes there is no one controlling party.

Page 24