Hiya Communications UK Ltd
Financial Statements
For the year ended 31 December 2023
Pages for Filing with Registrar
Company Registration No. 10529585 (England and Wales)
Hiya Communications UK Ltd
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 7
Hiya Communications UK Ltd
Balance Sheet
As at 31 December 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
12,889
20,501
Current assets
Debtors
4
1,093,106
969,027
Cash at bank and in hand
49,391
72,181
1,142,497
1,041,208
Creditors: amounts falling due within one year
5
(2,808,953)
(2,906,206)
Net current liabilities
(1,666,456)
(1,864,998)
Net liabilities
(1,653,567)
(1,844,497)
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
(1,653,568)
(1,844,498)
Total equity
(1,653,567)
(1,844,497)

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

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

The financial statements were approved and signed by the director and authorised for issue on 25 September 2024
K A Algard
Director
Company Registration No. 10529585
HIYA COMMUNICATIONS UK LTD
Hiya Communications UK Ltd
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2023
Page 2
1
Accounting policies
Company information

Hiya Communications UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is The Brew Eagle House, 163 City Road, London, England, EC1V 1NR.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements, which are those of Hiya Communications UK Ltd as an individual entity, have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The company’s ongoing principal activity is to provide support services to it's parent entity, Hiya Inc. The company’s principal risks are therefore closely linked to those of the parent entity and it is consequently exposed to the parent entities willingness and capacity to provide financial support. Hiya Inc has developed telephony products for caller ID and call blocking and has operated successfully for a number of years. Whilst Hiya Inc itself is in a development phase, the director is confident it has adequate funding and facilities in place to complete that development successfully. Hiya Inc has demonstrated it’s commitment to the long-term success of the company and view it as a critical component of it’s overall business strategy. Hiya Inc made advances of £2,556,686 to the company up to the balance sheet date and has agreed to provide ongoing financial support for at least a year from the date of the approval of these financial statements to enable the company to continue to trade and to meet its liabilities as they fall due. The Director has reviewed the financial standing of the parent entity and is confident it is able to continue supporting the business.

1.3
Turnover

Turnover represents the fair value of services provided during the period to the parent company. Turnover is recognised as contract activity progresses and the right to consideration is earned. Fair value reflects the amount expected to be recoverable from the parent company and is based on services provided and expenses incurred, but excludes VAT.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computer Equipment
33% per annum on a straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

HIYA COMMUNICATIONS UK LTD
Hiya Communications UK Ltd
NOTES TO THE FINANCIAL STATEMENTS (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 3
1.5
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.6
Financial instruments

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans and other debtors receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short term trade creditors and other current creditors payable on demand are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

1.7
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

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 by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.8
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

HIYA COMMUNICATIONS UK LTD
Hiya Communications UK Ltd
NOTES TO THE FINANCIAL STATEMENTS (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 4
1.9
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.10
Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant Is charged to the Statement of Comprehensive Income over the vesting period. Non-market vesting conditions are taken Into account by adjusting the number of equity Instruments expected to vest at each Balance Sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).

Where the terms and conditions of options are modified before they vest, the increase In the fair value of the options, measured Immediately before and after the modification, is also charged to Statement of Comprehensive Income over the remaining vesting period.

1.11
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.12
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
17
17
HIYA COMMUNICATIONS UK LTD
Hiya Communications UK Ltd
NOTES TO THE FINANCIAL STATEMENTS (Continued)
For the year ended 31 December 2023
Page 5
3
Tangible fixed assets
Computer Equipment
£
Cost
At 1 January 2023
64,358
Additions
5,870
Disposals
(6,566)
At 31 December 2023
63,662
Depreciation and impairment
At 1 January 2023
43,857
Depreciation charged in the year
13,482
Eliminated in respect of disposals
(6,566)
At 31 December 2023
50,773
Carrying amount
At 31 December 2023
12,889
At 31 December 2022
20,501
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
1,038,973
931,073
Other debtors
21,670
9,930
Prepayments and accrued income
32,463
28,024
1,093,106
969,027
HIYA COMMUNICATIONS UK LTD
Hiya Communications UK Ltd
NOTES TO THE FINANCIAL STATEMENTS (Continued)
For the year ended 31 December 2023
Page 6
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
7,570
11,957
Amounts owed to group undertakings
2,556,686
2,550,071
Taxation and social security
37,108
40,937
Accruals and deferred income
207,589
303,241
2,808,953
2,906,206

 

 

 

 

6
Share-based payment transactions
Liabilities and expenses

During the year ended 31 December 2023, the company operated an equity settled share option plan for which employees were granted share option rights in the parent company (Hiya, Inc.) As of 31 December 2023, 54,700 (2022: 180,000) options had been granted and 318,642 (2022: 358,942) options remain outstanding to 17 (2022: 21) employees at an exercise price of between $0.16 and $0.62 (2022: $0.16 and $0.57). The options vest over four years and can exercised at any time from the date of vesting to 4 years from the date of grant, if still performing services for the company. During the year ended 31 December 2023, nil (2022: 187,540) share options were exercised and 95,000 (2022: 119,251) shares were cancelled.

7
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
18,000
12,000
8
Related party transactions

The company has taken advantage of the exemption from disclosing transactions with members within a wholly owned group.

HIYA COMMUNICATIONS UK LTD
Hiya Communications UK Ltd
NOTES TO THE FINANCIAL STATEMENTS (Continued)
For the year ended 31 December 2023
Page 7
9
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Andrew Grieve
Statutory Auditor:
Moore Kingston Smith LLP
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