REGISTERED NUMBER: |
Financial Statements for the Year Ended 31 December 2023 |
for |
Deepmatter Ltd. |
REGISTERED NUMBER: |
Financial Statements for the Year Ended 31 December 2023 |
for |
Deepmatter Ltd. |
Deepmatter Ltd. (Registered number: SC456741) |
Contents of the Financial Statements |
for the year ended 31 December 2023 |
Page |
Company Information | 1 |
Statement of Financial Position | 2 |
Notes to the Financial Statements | 4 |
Deepmatter Ltd. |
Company Information |
for the year ended 31 December 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
Brooke's Mill |
Armitage Bridge |
Huddersfield |
West Yorkshire |
HD4 7NR |
Deepmatter Ltd. (Registered number: SC456741) |
Statement of Financial Position |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
Tangible assets | 5 |
CURRENT ASSETS |
Debtors | 6 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
( |
) |
CAPITAL AND RESERVES |
Called up share capital |
Share premium |
Capital contribution |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
The director acknowledges his 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. |
Deepmatter Ltd. (Registered number: SC456741) |
Statement of Financial Position - continued |
31 December 2023 |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the director and authorised for issue on |
Deepmatter Ltd. (Registered number: SC456741) |
Notes to the Financial Statements |
for the year ended 31 December 2023 |
1. | STATUTORY INFORMATION |
DeepMatter Ltd is a private company, limited by shares, registered in Scotland. The Company's registered number is SC456741 and registered office address is Office 3.08, Wizu Workspace, 2 West Regent Street, Glasgow, G2 1RW. The Company's principal activity is the building and commercialising of the most powerful data platforms to enable scientists to easily perform and optimise chemical reactions by increasingly integrating chemistry with technology. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements were previously prepared in accordance with FRS 101. Following the delisting from the AIM market of the London Stock Exchange of the parent company, DeepMatter Group Limited, the Company now prepares its financial statements in accordance with FRS 102. There are no transitional adjustments and no impact on the result for the year or on the Company's net liabilities. |
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. |
Deepmatter Ltd. (Registered number: SC456741) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Changes in accounting policies |
New Standards and interpretations |
(a) New and amended Standards and Interpretations adopted by the Company |
Amendments have been made to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors in relation to the definition of material. The amendments clarify the definition of what is material to the financial statements and how to apply the definition, but are not expected to have a material impact on the entity in the current or future reporting periods. |
(b) New and amended Standards and Interpretations issued but not effective for the financial year beginning 1 January 2023. |
Certain new accounting standards and interpretations have been published that are not mandatory for 31 December 2023 reporting periods and have not been early adopted by the company. These standards are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. |
Going concern |
In the year ended 31 December 2023, the Company had net liabilities of £10,828,605 and held £73,571 of cash and cash equivalents at the year end. |
At this stage in its commercialisation the Company is reliant on funding from its parent company, DeepMatter Group Limited. As in previous years the parent company has continued to utilise its cash resources to fund losses whilst the Company's DigitalGlassware® platform is commercialised and the sales pipeline is being established. The Company continues to actively seek new business opportunities and progress discussions with our existing partners. At the date of approval of these financial statements, the timing and value of new revenue contracts remains uncertain. However, discussions are progressing and are expected to result in additional new revenues for the Company. |
The cash balance of the Group at the 31 December 2023 was £274,854. The Directors of DeepMatter Group Limited are seeking to raise additional funding during 2024 and are currently in active discussions with investors. Whilst there is no certainty that a fund raise will be successful, the Directors have a reasonable expectation that DeepMatter Group Limited will be able to raise sufficient funding to ensure that it can continue to provide ongoing financial support to DeepMatter Limited, to enable it to operate for a period of at least 12 months from the date of approval of these financial statements. |
Based on the Directors expectations of achieving a successful fund raise, they consider that it is appropriate to adopt the going concern basis in preparing the financial statements. The financial statements do not include any adjustments which would be required if the going concern basis of preparation was deemed to be inappropriate. If the Directors are unable to successfully raise new funding in the parent company, and therefore ongoing financial support is not available to DeepMatter Limited, then the Company will not have sufficient funding for the next 12 months. Therefore, there is a material uncertainty which may cast doubt about the Company's ability to continue as a going concern. |
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. |
Deepmatter Ltd. (Registered number: SC456741) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Intangible assets - licences |
Intangible assets are stated at cost or deemed cost less provisions for amortisation and impairments. Technology licences separately acquired are amortised over 20 years, being the length of the licence agreement. |
Tangible fixed assets |
Plant and machinery etc | - |
Financial assets and liabilities |
Trade and other receivables |
Trade and other receivables are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method less any provision for impairment. |
Trade and other payables |
Trade and other payables are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at hand, bank balances and short-term deposits of less than three months. The Company's funds are held for the purpose of funding the future growth of the business. Deposits are placed with banks and financial institutions with a sound credit rating and such investments are regularly reviewed by the Board. |
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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
Deepmatter Ltd. (Registered number: SC456741) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Research and development |
Research costs are charged against income as they are incurred. Certain development costs are capitalised as intangible assets, when it is probable that future economic benefits will flow to the Company. Such intangible assets are amortised on a straight line basis from the point at which the assets are ready for use over the period of the expected benefit and are reviewed for impairment at each balance sheet date. Other development costs are charged against income as incurred since the criteria for their recognition as an asset are not met. |
The criteria for recognising development expenditure as an asset are: |
- | Completion of the intangible asset is technically feasible so that it will be available for use or sale; |
- | The Company intends to complete the intangible asset and use or sell it; |
- | The Company has the ability to use or sell the intangible asset; |
- | The intangible asset will generate probable future economic benefits. Among many other things, this requires that there is a market for the output from the intangible asset or for the intangible asset itself, or, if it is to be used internally, the asset will be used in generating such benefits; |
- | That the Company has available to it adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and |
- | That the Company can reliably measure the expenditure attributable to the intangible asset during its development. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position 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 year was |
Deepmatter Ltd. (Registered number: SC456741) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
4. | INTANGIBLE FIXED ASSETS |
Other |
intangible |
assets |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
5. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
etc |
£ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Deepmatter Ltd. (Registered number: SC456741) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Taxation and social security |
Accruals |
Trade creditors are non-interest bearing and are normally settled on 30 day terms. Other creditors and accruals are non-interest bearing. |
8. | RELATED PARTY DISCLOSURES |
Terms and conditions of transactions with related parties: |
Purchases between related parties are made on an arm's length basis. Outstanding balances with entities other than subsidiaries are unsecured, interest free and cash settlement is expected within 60 days of invoice. Terms and conditions with other Group companies are the same, with the exception that balances are placed on intercompany accounts with no specified credit period. |
9. | ULTIMATE CONTROLLING PARTY |
The ultimate parent company and ultimate controlling party is DeepMatter Group Limited which is registered in England and Wales. DeepMatter Group Limited's registered office is West Hill House, Allerton Hill, Chapel Allerton, Leeds, LS7 3QB. |