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REGISTERED NUMBER: SC537962 (Scotland)









UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

FOR

CRYPTOGRAPHY LTD

CRYPTOGRAPHY LTD (REGISTERED NUMBER: SC537962)






CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4


CRYPTOGRAPHY LTD

COMPANY INFORMATION
for the year ended 30 June 2023







DIRECTORS: A Kiayias
L Georgiou





REGISTERED OFFICE: Q Court
3 Quality Street
Edinburgh
EH4 5BP





REGISTERED NUMBER: SC537962 (Scotland)





ACCOUNTANTS: Haines Watts
Business Advisors and Accountants
Q Court
3 Quality Street
Edinburgh
EH4 5BP

CRYPTOGRAPHY LTD (REGISTERED NUMBER: SC537962)

BALANCE SHEET
30 June 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 1,634,633 1,073,513
Tangible assets 5 1,024 2,169
Listed investments 6 155,237 132,165
Investment property 7 680,000 700,030
2,470,894 1,907,877

CURRENT ASSETS
Debtors 8 151,942 14,901
Cash at bank and in hand 8,611,235 10,461,059
8,763,177 10,475,960
CREDITORS
Amounts falling due within one year 9 69,920 1,614,600
NET CURRENT ASSETS 8,693,257 8,861,360
TOTAL ASSETS LESS CURRENT
LIABILITIES

11,164,151

10,769,237

PROVISIONS FOR LIABILITIES 10 2,909 542
NET ASSETS 11,161,242 10,768,695

CAPITAL AND RESERVES
Called up share capital 100 100
Retained earnings 11,161,142 10,768,595
11,161,242 10,768,695

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

CRYPTOGRAPHY LTD (REGISTERED NUMBER: SC537962)

BALANCE SHEET - continued
30 June 2023


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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 29 March 2024 and were signed on its behalf by:





A Kiayias - Director


CRYPTOGRAPHY LTD (REGISTERED NUMBER: SC537962)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2023

1. STATUTORY INFORMATION

Cryptography Ltd is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


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 as modified by the revaluation of certain assets.

TURNOVER
Turnover is measured at the fair value of consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes, in relation to information technology consultancy activities and investment in blockchain technology.

INTANGIBLE FIXED ASSETS
Intangible fixed assets represent holdings of cryptocurrency at initial cost. The useful economic life of the cryptocurrency is considered by the directors to be indefinite and, accordingly, they are not amortised. The carrying values of intangible fixed assets are reviewed for impairment on an annual basis.

LISTED INVESTMENTS
Listed investments are shown at market value at the date of the financial statements. Any surplus or deficit
arising from the changes in market value are recognised separately in the profit or loss account.

TANGIBLE FIXED ASSETS
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Fixtures and fittings - 25% per annum reducing balance
Computer equipment - 33% per annum on cost

IMPAIRMENT OF ASSETS
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

INVESTMENT PROPERTY
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

CRYPTOGRAPHY LTD (REGISTERED NUMBER: SC537962)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 June 2023

2. ACCOUNTING POLICIES - continued

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

Short-term debt instruments, including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

TAXATION
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

FOREIGN CURRENCIES
Assets and liabilities in foreign currencies are translated into the entity's functional currency at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are initially recorded in the entity’s functional currency by applying the spot exchange rate ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating result and all differences are taken to the profit and loss account.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2022 - 1 ).

CRYPTOGRAPHY LTD (REGISTERED NUMBER: SC537962)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 June 2023

4. INTANGIBLE FIXED ASSETS
Cryptocurrency
£   
COST
At 1 July 2022 1,073,513
Additions 2,505,836
Disposals (1,738,750 )
Impairments (205,966 )
At 30 June 2023 1,634,633
NET BOOK VALUE
At 30 June 2023 1,634,633
At 30 June 2022 1,073,513

Intangible fixed assets had a market value of £4.4m (2022 - £6.5m) at the balance sheet date. If the intangible assets were to be carried at market value, a deferred tax liability of £0.7m (2022 - £1.0m) would be recognised. Intangible fixed assets had a market value of £10.1m at the date of approval of the financial statements.

In line with the accounting policy, neither market value nor deferred tax has been recognised due to the volatility within the market.

5. TANGIBLE FIXED ASSETS
Fixtures
and Computer
fittings equipment Totals
£    £    £   
COST
At 1 July 2022
and 30 June 2023 433 3,664 4,097
DEPRECIATION
At 1 July 2022 170 1,758 1,928
Charge for year 66 1,079 1,145
At 30 June 2023 236 2,837 3,073
NET BOOK VALUE
At 30 June 2023 197 827 1,024
At 30 June 2022 263 1,906 2,169

CRYPTOGRAPHY LTD (REGISTERED NUMBER: SC537962)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 June 2023

6. FIXED ASSET INVESTMENTS
Listed
investments
£   
COST OR VALUATION
At 1 July 2022 132,165
Additions 3
Revaluations 5,299
Reversal of impairments 17,770
At 30 June 2023 155,237
NET BOOK VALUE
At 30 June 2023 155,237
At 30 June 2022 132,165

Cost or valuation at 30 June 2023 is represented by:

Listed
investments
£   
Valuation in 2023 9,704
Cost 145,533
155,237

If listed investments had not been revalued they would have been included at the following historical cost:

2023 2022
£    £   
Cost 145,533 145,527

Listed investments were valued on a market value basis on 30 June 2023 by Saxo Capital Markets UK Ltd .

Market value of listed investments at 30 June 2023 - £ 155,237 .

7. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 July 2022 700,030
Impairments (20,030 )
At 30 June 2023 680,000
NET BOOK VALUE
At 30 June 2023 680,000
At 30 June 2022 700,030

CRYPTOGRAPHY LTD (REGISTERED NUMBER: SC537962)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 June 2023

7. INVESTMENT PROPERTY - continued

Fair value at 30 June 2023 is represented by:
£   
Valuation in 2023 (20,030 )
Cost 700,030
680,000

If investment property had not been revalued it would have been included at the following historical cost:

2023 2022
£    £   
Cost 700,030 700,030

Investment property was valued on an open market basis on 30 June 2023 by the directors .

8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 150,229 13,703
Other debtors 1,713 1,198
151,942 14,901

9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 3,253 1,202
Taxation and social security 47,946 1,567,191
Other creditors 18,721 46,207
69,920 1,614,600

10. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 2,909 542

Deferred
tax
£   
Balance at 1 July 2022 542
Charge to Statement of Income and Retained Earnings during year 2,367
Balance at 30 June 2023 2,909

11. RELATED PARTY DISCLOSURES

Included within "Other creditors" are amounts totalling £12,291 (2022 - £40,841) due to the directors. The loan is interest free and repayable on demand.