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REGISTERED NUMBER: 10005971 (England and Wales)















Report of the Directors and

Financial Statements for the Period 1 March 2023 to 31 December 2023

for

Hark Systems Ltd.

Hark Systems Ltd. (Registered number: 10005971)






Contents of the Financial Statements
for the Period 1 March 2023 to 31 December 2023




Page

Company Information 1

Report of the Directors 2

Balance Sheet 4

Notes to the Financial Statements 5


Hark Systems Ltd.

Company Information
for the Period 1 March 2023 to 31 December 2023







DIRECTORS: J W Appleson
Herr J Schaechter
R Faier





REGISTERED OFFICE: Platform 5A
New Station Street
Leeds
West Yorkshire
LS1 4JB





REGISTERED NUMBER: 10005971 (England and Wales)





AUDITORS: Richard Smedley Limited
Chartered Accountants & Registered Auditors
Richmond House
Lawnswood Business Park
Redvers Close
Leeds
West Yorkshire
LS16 6QY

Hark Systems Ltd. (Registered number: 10005971)

Report of the Directors
for the Period 1 March 2023 to 31 December 2023

The directors present their report with the financial statements of the company for the period 1 March 2023 to 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the period under review was that of creating software and technology to monitor and analyse sensor data.

DIRECTORS
J W Appleson has held office during the whole of the period from 1 March 2023 to the date of this report.

Other changes in directors holding office are as follows:

A C Hathaway - resigned 6 April 2023
J D Kay - resigned 6 April 2023
A Chinnaraja - resigned 6 April 2023
P W Altoft - resigned 6 April 2023
Herr J Schaechter - appointed 6 April 2023
R Faier - appointed 6 April 2023

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, Richard Smedley Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.


Hark Systems Ltd. (Registered number: 10005971)

Report of the Directors
for the Period 1 March 2023 to 31 December 2023

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:





J W Appleson - Director


25 July 2024

Hark Systems Ltd. (Registered number: 10005971)

Balance Sheet
31 December 2023

31.12.23 28.2.23
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 99,844 3,347

CURRENT ASSETS
Stocks 12,595 -
Debtors 5 974,358 841,778
Cash at bank 540,902 29,040
1,527,855 870,818
CREDITORS
Amounts falling due within one year 6 1,023,552 1,600,536
NET CURRENT ASSETS/(LIABILITIES) 504,303 (729,718 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

604,147

(726,371

)

CREDITORS
Amounts falling due after more than one year 7 - 239,474
NET ASSETS/(LIABILITIES) 604,147 (965,845 )

CAPITAL AND RESERVES
Called up share capital 11 15 13
Share premium 3,064,188 120,061
Retained earnings (2,460,056 ) (1,085,919 )
SHAREHOLDERS' FUNDS 604,147 (965,845 )

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 25 July 2024 and were signed on its behalf by:





J W Appleson - Director


Hark Systems Ltd. (Registered number: 10005971)

Notes to the Financial Statements
for the Period 1 March 2023 to 31 December 2023

1. STATUTORY INFORMATION

Hark Systems 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.

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 are presented in GBP which is the currency of the primary economic environment in which the Company operates and are rounded to the nearest pound.

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

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 value of the consideration received on the provision of the goods and services to the customers excluding Value Added Tax. Revenue is recognised upon completion of the order and the company has received the rights to the consideration.

Contracts that are yet to be completed at the year end date are assessed as to the stage of completion they have reached and an appropriate amount of revenue and cost are recognised thereon.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - Straight line over 6 years
Fixtures and fittings - 25% on reducing balance and 7% on cost
Computer equipment - Straight line over 3 years

Work in progress
Work in progress is valued at the lower of cost or net realisable value.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location.

Financial instruments
Basic financial instruments are recognised at amortised costs. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.


Hark Systems Ltd. (Registered number: 10005971)

Notes to the Financial Statements - continued
for the Period 1 March 2023 to 31 December 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the period 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 period 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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


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.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the period was 25 (2023 - 20 ) .

Hark Systems Ltd. (Registered number: 10005971)

Notes to the Financial Statements - continued
for the Period 1 March 2023 to 31 December 2023

4. TANGIBLE FIXED ASSETS
Improvements Fixtures
to and Computer
property fittings equipment Totals
£    £    £    £   
COST
At 1 March 2023 - 1,589 49,821 51,410
Additions 13,214 53,983 39,011 106,208
At 31 December 2023 13,214 55,572 88,832 157,618
DEPRECIATION
At 1 March 2023 - 1,298 46,765 48,063
Charge for period 734 1,313 7,664 9,711
At 31 December 2023 734 2,611 54,429 57,774
NET BOOK VALUE
At 31 December 2023 12,480 52,961 34,403 99,844
At 28 February 2023 - 291 3,056 3,347

5. DEBTORS
31.12.23 28.2.23
£    £   
Amounts falling due within one year:
Trade debtors 249,526 675,560
Other debtors 673,883 166,218
923,409 841,778

Amounts falling due after more than one year:
Other debtors 50,949 -

Aggregate amounts 974,358 841,778

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 28.2.23
£    £   
Bank loans and overdrafts - 95,790
Trade creditors 69,417 85,522
Taxation and social security 92,584 322,080
Other creditors 861,551 1,097,144
1,023,552 1,600,536

Hark Systems Ltd. (Registered number: 10005971)

Notes to the Financial Statements - continued
for the Period 1 March 2023 to 31 December 2023

7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.23 28.2.23
£    £   
Bank loans - 239,474

8. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.23 28.2.23
£    £   
Within one year 84,915 57,960
Between one and five years 679,320 -
In more than five years 120,296 -
884,531 57,960

9. SECURED DEBTS

HSBC UK Bank PLC hold a fixed and floating charge over cash deposits.

During the period, two fixed and floating charge over property held by HSBC were fully satisfied.

10. FINANCIAL INSTRUMENTS

Basic financial instruments are recognised at amortised cost.

11. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 28.2.23
value: £    £   
1,361,000 Ordinary £0.0001 15 13
1 Ordinary £1 - -
15 13

The following fully paid shares were allotted during the period at a premium as shown below:

27,000 Ordinary shares of £0.0001 each at £2 per share
1 Ordinary share of £1 at £2,894,123

SolarEdge Technologies Inc. purchased the company on the 23rd May 2023 and now owns 100% of the share capital in Hark Systems Limited.

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

The Report of the Auditors was unqualified.

Richard Smedley (Senior Statutory Auditor)
for and on behalf of Richard Smedley Limited

Hark Systems Ltd. (Registered number: 10005971)

Notes to the Financial Statements - continued
for the Period 1 March 2023 to 31 December 2023

13. ULTIMATE CONTROLLING PARTY

The sale of the business was completed on the 26th May 2023 when SolarEdge Technology Inc. purchased the shares of the company from the original shareholders.

The immediate parent undertaking is SolarEdge Technologies Inc. a company incorporated in the United States of America.

This is the smallest & largest group into which the Company's financial statements are consolidated. Copies of these consolidated group financial statements may be obtained from the following address: SolarEdge Technologies Inc., 47505, Seabridge Drive, Fremont, CA, 94538, United States of America.

14. SHARE-BASED PAYMENT TRANSACTIONS

The Company's ultimate parent company granted an Restricted Stock Unit (RSU) to 10 Employees in 2023. The RSUs are exercisable at a price of £82.48 per share at staged intervals between the year end date and 2024.

The weighted average granted at fair value of share awards granted during 2023 was £0. The total fair value of shares exercised during 2023 was £0