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REGISTERED NUMBER: 08898452 (England and Wales)















UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

FOR

WOW HYDRATE LIMITED

WOW HYDRATE LIMITED (REGISTERED NUMBER: 08898452)






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


WOW HYDRATE LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 30 JUNE 2023







DIRECTORS: Mrs A E Grasso
G P Brocklesby
A L Case
R J Eyles





SECRETARY: J L Blake





REGISTERED OFFICE: Create Business Hub
Ground Floor
5 Rayleigh Road
Shenfield
Essex
CM13 1AB





REGISTERED NUMBER: 08898452 (England and Wales)





ACCOUNTANTS: Tish Press & Company
Create Business Hub
Ground Floor
5 Rayleigh Road
Hutton, Brentwood.
Essex
CM13 1AB

WOW HYDRATE LIMITED (REGISTERED NUMBER: 08898452)

BALANCE SHEET
30 JUNE 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 100,613 150,242
Tangible assets 5 264,567 209,070
365,180 359,312

CURRENT ASSETS
Stocks 6 1,124,206 354,858
Debtors 7 1,177,363 3,443,664
Cash at bank and in hand 113,175 6,437
2,414,744 3,804,959
CREDITORS
Amounts falling due within one year 8 2,174,903 2,483,905
NET CURRENT ASSETS 239,841 1,321,054
TOTAL ASSETS LESS CURRENT
LIABILITIES

605,021

1,680,366

CAPITAL AND RESERVES
Called up share capital 10 17,473 14,231
Share premium 11 29,466,404 23,124,209
Retained earnings 11 (28,878,856 ) (21,458,074 )
SHAREHOLDERS' FUNDS 605,021 1,680,366

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.

WOW HYDRATE LIMITED (REGISTERED NUMBER: 08898452)

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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 31 July 2024 and were signed on its behalf by:





J L Blake - Director


WOW HYDRATE LIMITED (REGISTERED NUMBER: 08898452)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

1. STATUTORY INFORMATION

Wow Hydrate 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.

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.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of nil years.

Development costs are being amortised evenly over their estimated useful life of nil years.

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 - 25% on cost
Fixtures and fittings - 25% on cost
Motor vehicles - 25% on cost
Computer equipment - 25% on cost

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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.

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.

WOW HYDRATE LIMITED (REGISTERED NUMBER: 08898452)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

2. ACCOUNTING POLICIES - continued

Research and development
In the research phase of an internal project, it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.

If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

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.

Going concern
During the year the company recorded a loss of £5,424,798 and remains reliant on continued investment from current shareholders and new external investment in order to meet its liabilities as they fall due both in the short term and 12 months from the date of approval of the financial statements.

While the company remains reliant on the support of the shareholders, the level of support required from pre­ existing shareholders has reduced significantly since the year end as new, high-profile shareholders have been taken on board.

Following the decision to fundamentally change the Wow Hydrate products in April 2022, the cost of manufacture has reduced significantly from the launch of Wow Hydrate Next Generation in late August 2022. The gross margin per unit from the next generation bottles is averaging between 40% and 50% against the previous gross margins of between 10% and 15%.

Product sales during July and August 2022 were slow as stocks of the old products were wound down to allow a complete switch to the new products from late August, but since the launch of the new drinks sales have climbed significantly and the first quarter of 2023 has seen sales volumes up over 200% on the same period last year.

Having considered the combination of reduced unit cost, increased sales volumes and continued funding from shareholders and new investors, the directors have concluded that it remains their expectation that margins will increase, and funding will continue to be available. It is therefore appropriate to continue to adopt the going concern basis of preparation for these financial statements.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 18 (2022 - 18 ) .

WOW HYDRATE LIMITED (REGISTERED NUMBER: 08898452)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

4. INTANGIBLE FIXED ASSETS
Patents
and Development
licences costs Totals
£    £    £   
COST
At 1 July 2022
and 30 June 2023 955,536 41,221 996,757
AMORTISATION
At 1 July 2022 805,538 40,977 846,515
Amortisation for year 49,385 244 49,629
At 30 June 2023 854,923 41,221 896,144
NET BOOK VALUE
At 30 June 2023 100,613 - 100,613
At 30 June 2022 149,998 244 150,242

5. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 July 2022 730,218 177,093 22,750 43,859 973,920
Additions 141,494 31,108 26,260 12,567 211,429
Disposals - - (22,750 ) - (22,750 )
At 30 June 2023 871,712 208,201 26,260 56,426 1,162,599
DEPRECIATION
At 1 July 2022 581,346 136,335 20,125 27,044 764,850
Charge for year 92,866 43,291 1,662 15,488 153,307
Eliminated on disposal - - (20,125 ) - (20,125 )
At 30 June 2023 674,212 179,626 1,662 42,532 898,032
NET BOOK VALUE
At 30 June 2023 197,500 28,575 24,598 13,894 264,567
At 30 June 2022 148,872 40,758 2,625 16,815 209,070

6. STOCKS
2023 2022
£    £   
Raw materials 322,395 195,500
Finished goods 801,811 159,358
1,124,206 354,858

WOW HYDRATE LIMITED (REGISTERED NUMBER: 08898452)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 671,318 404,107
Amounts owed by group undertakings - 36,920
Other debtors 99,656 2,186,943
Tax - 269,636
VAT 239,361 222,354
Prepayments and accrued income 167,028 323,704
1,177,363 3,443,664

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts 23,859 39,167
Trade creditors 1,628,493 1,942,329
Social security and other taxes 139,451 -
Other creditors 137,456 392,464
Accruals and deferred income 245,644 109,945
2,174,903 2,483,905

9. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year - 14,344

10. CALLED UP SHARE CAPITAL

Shares were issued during the period as follows:

On 15th August 2022 the company issued 10,350 A class £0.025 ordinary shares for a consideration of £425,000.

On 11th November 2022 the company issued 34,417 A Class ordinary shares of £0.025 each and 466 B Class ordinary shares of £0.025 for a total consideration of £1,504,758.

On 19th December 2022 the company issued 20,893 A Class ordinary shares of £0.025 each for a consideration of £850,000.

On the 23rd March 2023 the company issued 63,552 A Class ordinary shares of £0.025 each for a consideration of £2,500,771

WOW HYDRATE LIMITED (REGISTERED NUMBER: 08898452)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

11. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1 July 2022 (21,458,074 ) 23,124,209 1,666,135
Deficit for the year (7,420,782 ) (7,420,782 )
Cash share issue - 6,342,195 6,342,195
At 30 June 2023 (28,878,856 ) 29,466,404 587,548

12. POST BALANCE SHEET EVENTS

Since the year end the company has raised a further £3,499,693 through the issue of 69,896 new ordinary shares of £0.025 nominal value each, and upon confirmation of the sponsorship agreement being signed in Autumn 2023 a further raise of £9,096,484 has been completed and will be subject to the issuance of an additional 179,308 shares at a nominal value of £0.025 per share.