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REGISTERED NUMBER: 11572467 (England and Wales)













FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

MOMENTUM DESIGN LAB LTD

MOMENTUM DESIGN LAB LTD (REGISTERED NUMBER: 11572467)






CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


MOMENTUM DESIGN LAB LTD

COMPANY INFORMATION
for the Year Ended 31 December 2023







DIRECTORS: D Thomson
M Scrivener





SECRETARY: G Simmons





REGISTERED OFFICE: 20-22 Wenlock Road
London
N1 7GU





REGISTERED NUMBER: 11572467 (England and Wales)





AUDITORS: Oury Clark Chartered Accountants
Statutory Auditors
Herschel House
58 Herschel Street
Slough
Berkshire
SL1 1PG

MOMENTUM DESIGN LAB LTD (REGISTERED NUMBER: 11572467)

BALANCE SHEET
31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 4,677 3,910

CURRENT ASSETS
Debtors 5 860,962 1,010,478
Cash at bank 430,309 302,606
1,291,271 1,313,084
CREDITORS
Amounts falling due within one year 6 1,031,796 1,537,826
NET CURRENT ASSETS/(LIABILITIES) 259,475 (224,742 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

264,152

(220,832

)

PROVISIONS FOR LIABILITIES 1,106 -
NET ASSETS/(LIABILITIES) 263,046 (220,832 )

CAPITAL AND RESERVES
Called up share capital 8 1 1
Share option reserve 9 65,593 44,371
Retained earnings 9 197,452 (265,204 )
SHAREHOLDERS' FUNDS 263,046 (220,832 )

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

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

The financial statements were approved by the Board of Directors and authorised for issue on 17 July 2024 and were signed on its behalf by:





M Scrivener - Director


MOMENTUM DESIGN LAB LTD (REGISTERED NUMBER: 11572467)

NOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Momentum Design Lab Ltd 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 trading address of the company is 74 Rivington Street, London, EC2A 3AY.

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.

The financial statements have been prepared on the going concern basis on the basis that the ultimate parent company has confirmed that it will continue to support the company, and is able to do so, for a period of at least 12 months and 1 day following the signing of the audit report.

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

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover includes revenue earned from the rendering of services. Revenue is recognised over the life of the contracts. Where work has been invoiced but not yet performed, deferred revenue is accounted for within the financial statements.

Where services performed but not yet billed, accrued income is recognised for when the company can measure reliably the value of services provided, and it is probable that economic benefits or service potential associated with the transaction will flow to the company.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery etc - 25% on cost

Financial instruments
Basic financial instruments as covered by Section 11 of FRS102 are measured at amortised cost. The company does not have any other financial instruments as covered by Section 12 of FRS102.

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

Current or deferred taxation assets and liabilities are not discounted.

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


MOMENTUM DESIGN LAB LTD (REGISTERED NUMBER: 11572467)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

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

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Share based payments
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the rendering of services. Two separate awards of share options were in issue during the year. One issue being a performance based vesting condition, dependent on achieving targets related to EBITDA. The other issue being a time based vesting condition, dependent on satisfying a specified term of service.

The cost of equity-settled transactions is measured at the fair value on grant date.Fair value is determined using the Black-Scholes option pricing model that takes into account the exercise price, the term of the options, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Company received the services that entitle the employees to receive payment. No account is taken of any other vesting conditions.

The cost of equity-settled transactions is recognised as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 7 (2022 - 8 ) .

MOMENTUM DESIGN LAB LTD (REGISTERED NUMBER: 11572467)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023

4. TANGIBLE FIXED ASSETS
Plant and
machinery
etc
£   
COST
At 1 January 2023 4,782
Additions 2,290
At 31 December 2023 7,072
DEPRECIATION
At 1 January 2023 872
Charge for year 1,523
At 31 December 2023 2,395
NET BOOK VALUE
At 31 December 2023 4,677
At 31 December 2022 3,910

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 562,074 516,797
Amounts owed by group undertakings 140,841 299,358
Other debtors 95,251 135,979
Prepayments and accrued income 62,796 58,344
860,962 1,010,478

Included within Trade Debtors is a provision for £421,413 (2022: £377,984) comprising (i) the impairment of a customer balance as at 31st December 2022 and still included as at 31st December 2023 for a total of £377,984, and (ii) the impairment of a customer balance as at 31st December 2023 for a total of £43,756.

As at the reporting date, there was a reasonable expectation that no further amounts were recoverable from either customer, and therefore both the specific trade balance has been provided for in full.

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade creditors 21,482 36,764
Amounts owed to group undertakings 677,142 800,791
Taxation and social security 111,723 152,712
Other creditors & accruals 221,449 547,559
1,031,796 1,537,826

7. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.23 31.12.22
£    £   
Within one year 5,960 10,800

MOMENTUM DESIGN LAB LTD (REGISTERED NUMBER: 11572467)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023

8. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
1 Ordinary £1 1 1

9. RESERVES
Share
Retained option
earnings reserve Totals
£    £    £   

At 1 January 2023 (265,204 ) 44,371 (220,833 )
Profit for the year 462,656 462,656
Share option expense - 21,222 21,222
At 31 December 2023 197,452 65,593 263,045

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

The Report of the Auditors was unqualified.

Amy Enslin (Senior Statutory Auditor)
for and on behalf of Oury Clark Chartered Accountants

As stated above, the Report of the Auditors was unqualified.

We would like to draw your attention to the following statement contained within our audit report as included within the full financial statements:-

"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."

MOMENTUM DESIGN LAB LTD (REGISTERED NUMBER: 11572467)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023

11. SHARE-BASED PAYMENT TRANSACTIONS

The company has a share option plan which is open to certain employees of the company at the discretion of the Board. Options are exercisable at a price specified in the aforementioned option plan. Should the options remain unexercised, they lapse after 10 years from the date of the grant. The options also lapse following the employee leaving the group and various other conditions set out in the plan rules.

At the beginning of the period, 1st January 2023, a total of 31,016 equity-settled share options were in issue, of which 13,417 had vested. Within the 13,417 which had vested, 6,530 had fully vested due to being performance condition based only. During the year, there were no additional share options granted under the scheme, nor were there any exercises, forfeitures or cancellations in the year. At the end of 2023, a total of 19,538 options had vested, of which 6,530 being fully vested as described above.

The only share options yet to vest are only conditional on term of service, becoming fully vested after 4 years of issue. The fair valuation methodology utilised was the Black Scholes method, being deemed appropriate due to the relatively straight forward capital structure being assessed.

The charge recognised in the profit and loss account is allocated on the basis of the share-based payments charge for each individual employee of the UK entity to whom share options have been granted.

31.12.2331.12.22
££
Equity-settled schemes21,22244,371

12. ULTIMATE PARENT COMPANY

The ultimate parent company is HTEC Group Inc., a company incorporated in the USA.

The only group of undertakings for which consolidated financial statements are prepared which include Momentum Design Lab Ltd are those of HTEC Group Inc. Copies of these consolidated financial statements are available from HTEC Group Inc., 535 Mission Street, 14th floor, San Francisco, USA.

13. ULTIMATE CONTROLLING PARTY

There is no ultimate controlling party.