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REGISTERED NUMBER: 13315180 (England and Wales)










Digitalocean Droplet Limited

Report of the Directors and

Financial Statements

for the Year Ended 31 December 2022






Digitalocean Droplet Limited (Registered number: 13315180)






Contents of the Financial Statements
for the year ended 31 December 2022




Page

Company Information 1

Report of the Directors 2

Report of the Independent Auditors 3

Statement of Comprehensive Income 7

Balance Sheet 8

Statement of Changes in Equity 9

Notes to the Financial Statements 10


Digitalocean Droplet Limited

Company Information
for the year ended 31 December 2022







DIRECTORS: W Matthew Steinfort
Seth Justin Zelnick





REGISTERED OFFICE: c/o Fieldfisher Riverbank House
2 Swan Lake
London
EC4R 3TT





REGISTERED NUMBER: 13315180 (England and Wales)





AUDITORS: Walkers Accountants Limited
Statutory Auditor
Aireside House
Aireside Business Centre
Royd Ings Avenue
Keighley
West Yorkshire
BD21 4BZ

Digitalocean Droplet Limited (Registered number: 13315180)

Report of the Directors
for the year ended 31 December 2022

The directors present their report with the financial statements of the company for the year ended 31 December 2022.

DIRECTOR
Alan Nahum Shapiro held office from 1 January 2022 until after 31 December 2022 but prior to the date of this report.
W Matthew Steinfort and Seth Justin Zelnick were appointed as directors after 31 December 2022 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are 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 directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Walkers Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:





W Matthew Steinfort - Director


30 April 2024

Report of the Independent Auditors to the Members of
Digitalocean Droplet Limited

Opinion
We have audited the financial statements of Digitalocean Droplet Limited (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, Balance Sheet, 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 Financial Reporting Standard 101 'Reduced Disclosure Framework' (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.

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 Auditors' 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 directors' 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 directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Directors has been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Digitalocean Droplet Limited


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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 directors' 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 from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 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.

Report of the Independent Auditors to the Members of
Digitalocean Droplet Limited


Auditors' 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 a Report of the Auditors 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:

- we assessed the extent of compliance with the law and regulations identified above through making enquiries of management; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- tested journal entries and other adjustments for appropriateness to identify any unusual transactions, and evaluation the business rationale of significant transaction outside the normal course of the business.

- reviewed the application of accounting policies with focus on those with heightened estimation uncertainty.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation; and

- enquiring of management as to actual and potential litigation and claims.

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 Report of the Auditors.

Report of the Independent Auditors to the Members of
Digitalocean Droplet Limited


Use of our 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 a Report of the Auditors 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.




Andrew Day (Senior Statutory Auditor)
for and on behalf of Walkers Accountants Limited
Statutory Auditor
Aireside House
Aireside Business Centre
Royd Ings Avenue
Keighley
West Yorkshire
BD21 4BZ

1 May 2024

Digitalocean Droplet Limited (Registered number: 13315180)

Statement of Comprehensive
Income
for the year ended 31 December 2022

Period
6.4.21
Year Ended to
31.12.22 31.12.21
Notes £    £   

TURNOVER 4 6,227,674 623,703

Cost of sales (3,569,388 ) (726 )
GROSS PROFIT 2,658,286 622,977

Administrative expenses (2,132,007 ) (716,284 )
OPERATING PROFIT/(LOSS) 526,279 (93,307 )

Interest receivable and similar income 117 -
PROFIT/(LOSS) BEFORE TAXATION 6 526,396 (93,307 )

Tax on profit/(loss) 8 (11,609 ) 13,339
PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

514,787

(79,968

)


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

514,787

(79,968

)

Digitalocean Droplet Limited (Registered number: 13315180)

Balance Sheet
31 December 2022

31.12.22 31.12.21
Notes £    £   
FIXED ASSETS
Owned
Tangible assets 9 3,044,507 -
Right-of-use
Tangible assets 9, 15 6,818,661 -
9,863,168 -

CURRENT ASSETS
Stocks 10 117,607 -
Debtors 11 89,351 118,098
Cash at bank 327,290 22,128
534,248 140,226
CREDITORS
Amounts falling due within one year 12 (6,161,747 ) (220,094 )
NET CURRENT LIABILITIES (5,627,499 ) (79,868 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,235,669

(79,868

)

CREDITORS
Amounts falling due after more than one
year

13

(3,800,750

)

-
NET ASSETS/(LIABILITIES) 434,919 (79,868 )

CAPITAL AND RESERVES
Called up share capital 16 100 100
Retained earnings 17 434,819 (79,968 )
SHAREHOLDERS' FUNDS 434,919 (79,868 )

The financial statements have been prepared 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 30 April 2024 and were signed on its behalf by:





W Matthew Steinfort - Director


Digitalocean Droplet Limited (Registered number: 13315180)

Statement of Changes in Equity
for the year ended 31 December 2022

Called up
share Retained Total
capital earnings equity
£    £    £   

Changes in equity
Issue of share capital 100 - 100
Total comprehensive income - (79,968 ) (79,968 )
Balance at 31 December 2021 100 (79,968 ) (79,868 )

Changes in equity
Total comprehensive income - 514,787 514,787
Balance at 31 December 2022 100 434,819 434,919

Digitalocean Droplet Limited (Registered number: 13315180)

Notes to the Financial Statements
for the year ended 31 December 2022

1. STATUTORY INFORMATION

Digitalocean Droplet 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.

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


2. ACCOUNTING POLICIES

Basis of preparation
These financial statements have been prepared in accordance with Financial Reporting Standard 101 "Reduced Disclosure Framework" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has transitioned from Financial Reporting Standard 102 to Financial Reporting Standard 101 "Reduced Disclosure Framework" and Companies Act 2006 during the year.

The company's ultimate parent undertaking, DigitalOcean, LLC, includes the company in its consolidated financial statements. The consolidated financial statements are prepared in accordance with US- adopted international accounting standards and are available to the public and made be obtained from the company's registered address as set out in note 17.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 101 "Reduced Disclosure Framework":

the requirements of IFRS 7 Financial Instruments: Disclosures;
the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of
IFRS 16 Leases;
the requirements of paragraph 58 of IFRS 16;
the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to
(c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers;
the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative
information in respect of:
- paragraph 79(a)(iv) of IAS 1;
- paragraph 73(e) of IAS 16 Property, Plant and Equipment; and
- paragraph 118(e) of IAS 38 Intangible Assets;
the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134 to
136 of IAS 1;
the requirements of IAS 7 Statement of Cash Flows;
the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates
and Errors;
the requirements of paragraph 74(b) of IAS 16;
the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures;
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into
between two or more members of a group.

Revenue recognition
The company has entered into a contract with its parent company on the recovery of cost plus an agreed percentage.

Digitalocean Droplet Limited (Registered number: 13315180)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Property plant and equipment (PPE) is initially recognised at acquisition cost or manufacturing cost, including any costs directly attributable to bringing the assets to the location and condition necessary for them to be capable of operating in the manner intended by the company's management.

PPE are subsequently measured at cost less accumulated depreciation and impairment losses.

Depreciation is recognised on a straight line basis to write down the cost less estimated residual value of PPE.The following useful lives are applied:

- Right of use assets 3 years
- Computer equipment: 5 years

Material residual value estimates and the estimates of useful life are updated as required, but at least annually.

Gains or losses arising on the disposal of PPE are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognised in the statement of comprehensive income within other income or other expenses.

Digitalocean Droplet Limited (Registered number: 13315180)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

2. ACCOUNTING POLICIES - continued

Financial instruments
Financial assets

The company's financial assets fall into the category discussed below with the allocation depending on the purpose for which the assets was acquired. The Company has not classified any of its financial assets as held to maturity.

Unless otherwise indicated, the carrying amount of the Company's financial assets are a reasonable approximation of their fair values.

The company derecognises a financial assets only when the contractual rights to the cash flow from the assets expire; or it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Assets held at amortised cost
These assets are non-derivative financial assets with a fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers (e.g. trade receivables) and deposits held at banks but may incorporate other types of contractual monetary asset. They are initially recognised at fair value plus transaction costs that are directly attributable to the acquisition or issue and subsequently carried at amortised cost as reduced by appropriate allowances for estimated unrecoverable amounts.

The effect of discounting on these financial instruments is not considered material.

The Company makes use of a simplified approach to accounting for trade and other receivables and records the loss allowance as lifetime expected credit losses. These expected shortfalls in contractual cash flows, considering the potential for default at any point during the lifetime of the financial instrument. The Company uses its historical experience, external indicators and forward-looking information to calculate expected credit loss using a provision matrix.

The Company oversees impairment of trade receivables on a collective basis as they possess shared credit risk characteristics and they have been grouped on the number of days overdue.

Assets held at amortised cost in the company includes loans issued to other group companies. They are initially recognised at fair value less transaction costs that are directly attributable and subsequently at amortised cost reduced by appropriate allowance for credit losses.

For loans with other group companies that are repayable on demand, expected credit losses are based on the assumption that repayment of the loan is demanded at the reporting date in accordance with IFRS 9.

For other loans with group companies where the credit risk is deemed to be low a 12-month expected credit loss is recognised in accordance with IFRS 9.

Financial liabilities

The company classifies its financial liabilities into two categories depending on the purpose for which the liability was incurred

Unless otherwise indicated, the carrying amounts of the Company's financial liabilities are a reasonable approximation of their fair values.

The Company derecognises financial liabilities when, and only when, the Company's obligations are discharged, cancelled or they expire.

Financial liabilities measured at amortised cost
These liabilities include the following items:


Digitalocean Droplet Limited (Registered number: 13315180)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

2. ACCOUNTING POLICIES - continued
- Trade payables and other short term monetary liabilities, which are initially recognised at fair value and subsequently carried at amortised cost.

- Bank borrowing and amounts due to parent company are initially recognised at fair value bet of any transaction costs directly attributable to the issue of the instrument. Such interest bearing liabilities are subsequently measured at amortised cost. Interest is recognised as a finance expense in the income statement.

Stocks and work in progress
Work in Progress (WIP) is an asset under construction or procured but not yet put into operational service. WIP typically represents production equipment to be deployed in data centers and leasehold improvements. WIP costs that exceed the capitalisation threshold are accumulated in the WIP account until completion.

Data center assets staged at the Company's data centers or warehousing locations and pending deployment to their final in-service location are held in WIP. WIP is settled to the applicable fixed asset ledger account in the period in which the project is substantially complete and ready for its intended use.

Taxation
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 at the reporting end date.

Deferred income taxes are calculated using the liability method on temporary differences. This involves the comparison of the carrying amounts of assets and liabilities in the financial statements with their respective tax bases. However, in accordance with rules set out IAS 12, no deferred taxes are recognised on the initial recognition of goodwill, nor on the initial recognition of assets and liabilities unless acquired in a business combination or in a transaction that affects tax or accounting profit. In addition, tax losses available to be carried forward as well as other income tax credits to the company are assessed for recognition as deferred tax assets. Deferred tax liabilities are provided in full. Deferred tax assets are recognised to the extent that it is probable that they will be able to be offset against future taxable income. Deferred tax assets and liabilities are calculated, without discounting, at tax rate that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted at the balance sheet date.

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.

Leases
The Company recognises right-of-use assets at cost and lease liabilities at the lease commencement date based on the present value of future lease payments. The right of use assets are depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis in line with the Company’s accounting policy for property, plant and equipment. The lease liabilities are recognised at amortised cost using the effective interest rate method. The discount rates used reflect the incremental borrowing rate specific to the lease.

Employee benefit costs
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate.

Digitalocean Droplet Limited (Registered number: 13315180)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

2. ACCOUNTING POLICIES - continued

Going concern
The directors have, at the time of approving the financial statements, a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. As part of the DigitalOcean, LLC the Company is supported by the strong group balance sheet which has sufficient cash on hand to support the business in even the most severe scenarios the directors have modelled.
The directors have as a result obtained a letter of continued financial support from the ultimate parent company, DigitalOcean, LLC, for at least 12 months from the date of this report. The company therefore continues to adopt the going concern basis in preparing it financial statements.

International Financial Reporting Standards (IFRS) adopted for the first time in the year

There were no new standards or amendments to standards adopted for the first time this year that had a material impact on the results of the company.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect the applications of policies and the reported amounts of assets and liabilities, income and expenses.

Judgements and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results.

Estimation Uncertainty
Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below.

Useful lives of depreciable assets
Management reviews its estimates of the useful lives of depreciable assets at each reporting date, based on the expected utility of assets. Uncertainties in these estimates relate to mechanical and technological obsolescence that may change the utility of certain plant and equipment.

4. TURNOVER

The turnover and profit (2021 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

Period
6.4.21
Year Ended to
31.12.22 31.12.21
£    £   
United States of America 6,227,674 623,703
6,227,674 623,703

Digitalocean Droplet Limited (Registered number: 13315180)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

5. EMPLOYEES AND DIRECTORS
Period
6.4.21
Year Ended to
31.12.22 31.12.21
£    £   
Wages and salaries 1,376,991 581,834
Social security costs 207,219 27,913
Other pension costs 56,217 23,124
1,640,427 632,871

The average number of employees during the year was as follows:
Period
6.4.21
Year Ended to
31.12.22 31.12.21

Management 1 -
Engineers 7 4
Sales 3 1
Administrative 4 -
15 5

Period
6.4.21
Year Ended to
31.12.22 31.12.21
£    £   
Director's remuneration - -

6. PROFIT/(LOSS) BEFORE TAXATION

The profit before taxation (2021 - loss before taxation) is stated after charging:
Period
6.4.21
Year Ended to
31.12.22 31.12.21
£    £   
Cost of inventories recognised as expense 3,569,388 726
Depreciation - owned assets 179,171 -
Depreciation - assets on hire purchase contracts or finance leases 2,755,172 -
Foreign exchange differences 41,634 3,396
Operating lease rentals 15,936 -

7. AUDITORS' REMUNERATION
Period
6.4.21
Year Ended to
31.12.22 31.12.21
£    £   
Fees payable to the company's auditors for the audit of the company's
financial statements

17,000

-

Digitalocean Droplet Limited (Registered number: 13315180)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

8. TAXATION

Analysis of tax expense/(income)
Period
6.4.21
Year Ended to
31.12.22 31.12.21
£    £   
Current tax:
Tax 81,916 -

Deferred tax (70,307 ) (13,339 )
Total tax expense/(income) in statement of comprehensive income 11,609 (13,339 )

9. TANGIBLE FIXED ASSETS
Right of
use Computer
assets equipment Totals
£    £    £   
COST
Additions 9,573,833 3,223,678 12,797,511
At 31 December 2022 9,573,833 3,223,678 12,797,511
DEPRECIATION
Charge for year 2,755,172 179,171 2,934,343
At 31 December 2022 2,755,172 179,171 2,934,343
NET BOOK VALUE
At 31 December 2022 6,818,661 3,044,507 9,863,168

10. STOCKS
31.12.22 31.12.21
£    £   
Stocks 117,607 -

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.22 31.12.21
£    £   
Amounts owed by group undertakings - 104,759
Other debtors 89,351 13,339
89,351 118,098

Digitalocean Droplet Limited (Registered number: 13315180)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.22 31.12.21
£    £   
Leases (see note 14) 3,271,619 -
Trade creditors 307,088 -
Amounts owed to group undertakings 2,392,819 -
Tax 81,916 -
Social security and other taxes - 133,391
Other creditors 11,266 30,835
Accrued expenses 97,039 55,868
6,161,747 220,094

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.22 31.12.21
£    £   
Leases (see note 14) 3,800,750 -

14. FINANCIAL LIABILITIES - BORROWINGS

31.12.22 31.12.21
£    £   
Current:
Leases (see note 15) 3,271,619 -

Non-current:
Leases (see note 15) 3,800,750 -

Terms and debt repayment schedule

1 year or
less 1-2 years 2-5 years Totals
£    £    £    £   
Leases 3,271,619 3,502,670 298,080 7,072,369

15. LEASING

Right-of-use assets

Tangible fixed assets

31.12.22 31.12.21
£    £   
COST
Additions 9,573,833 -

DEPRECIATION
Charge for year 2,755,172 -

NET BOOK VALUE 6,818,661 -

Digitalocean Droplet Limited (Registered number: 13315180)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

15. LEASING - continued

Lease liabilities

Minimum lease payments fall due as follows:

31.12.22 31.12.21
£    £   
Gross obligations repayable:
Within one year 3,479,770 -
Between one and five years 3,884,110 -

7,363,880 -

Finance charges repayable:
Within one year 208,151 -
Between one and five years 83,360 -
291,511 -

Net obligations repayable:
Within one year 3,271,619 -
Between one and five years 3,800,750 -
7,072,369 -

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.22 31.12.21
value: £    £   
100 Ordinary shares 1 100 100

17. RESERVES
Retained
earnings
£   

At 1 January 2022 (79,968 )
Profit for the year 514,787
At 31 December 2022 434,819

18. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. During the year £56,217 (2021: £23,124) has been charged to the profit and loss account in respect of pension contributions. At the balance sheet date, there were outstanding contributions of £1,317 (2021: £23,103).

Digitalocean Droplet Limited (Registered number: 13315180)

Notes to the Financial Statements - continued
for the year ended 31 December 2022

19. ULTIMATE PARENT COMPANY

DigitalOcean Holdings, Inc (incorporated in USA ) is regarded by the directors as being the company's ultimate parent company.

The group in which the results of the company are consolidated is headed by the ultimate parent company. The consolidated accounts of DigitalOcean Holdings, Inc are available from 101 6th Avenue of The Americas, New York, New York, 10013-1941 United States of America.

20. RELATED PARTY DISCLOSURES

As permitted by FRS 101 related party transactions with wholly owned members of DigitalOcean Holdings, Inc have not been disclosed.