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REGISTERED NUMBER: 06551670 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

LOGRHYTHM LIMITED

LOGRHYTHM LIMITED (REGISTERED NUMBER: 06551670)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Statement of Financial Position 9

Statement of Changes in Equity 10

Notes to the Financial Statements 11


LOGRHYTHM LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: Mr B T Capoot
Mr N P Daviou
MR C T O'Malley





REGISTERED OFFICE: Clarion House
Norreys Drive
Maidenhead
Berkshire
SL6 4FL





REGISTERED NUMBER: 06551670 (England and Wales)





AUDITORS: Richardson Jones
Chartered Accountants &
Registered Auditors
Mercury House
19-21 Chapel Street
Marlow
Buckinghamshire
SL7 3HN

LOGRHYTHM LIMITED (REGISTERED NUMBER: 06551670)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their strategic report for the year ended 31 December 2023.

COMPANY OBJECTIVES
LogRhythm Limited (the Company) is a wholly owned subsidiary of LogRhythm, Inc., a USA based company. Our mission is to provide unified security intelligence and analytics solutions, empower the world's organisations to automate the detection, prioritisation and neutralisation of cyber-threats that have penetrated the enterprise perimeter or originated from within. Our software platform is designed to significantly reduce the time required to detect and respond to threats, enabling organisations to neutralise these threats before they case a damaging cyber-incident or data breach.

BUSINESS REVIEW AND FUTURE DEVELOPMENTS
The principal activity of the Company is the marketing and sale of LogRhythm, Inc.'s SIEM products on behalf of the parent undertaking through an Intercompany Cost Plus agreement.

During the year the Company generated: Turnover £11.1m (2022: £10.5m) and Operating profit £327k (2022: £295k). Both turnover and operating profit were in line with expectations.

Staff costs remained similar in 2023 to 2022: £7.3m (2022: £7.3m). The average monthly number of employees decreased in 2023 to 53 (2022: 63). The decrease in headcount was mainly in sales and marketing roles roles.

The directors are committed to develop the business and are projecting strong growth. Net assets at the end of 2023 were £10.1m (2022: £9.6m).

PRINCIPAL RISKS AND UNCERTAINTIES
Our ability to attract and retain some of the best talent in the industry, along with a strong culture supported by our core company values, is evident in our high ratings of customer and employee satisfaction.

We have received assurances from our parent company that it intends for the foreseeable future to undertake to provide sufficient funds to ensure the company is able to meet normal trading liabilities as they fall due.

FINANCIAL KEY PERFORMANCE INDICATORS
Given the nature of the Company's relationship with the parent company, the directors are of the opinion that additional Financial KPIs are not necessary for an understanding of the development and performance of the business.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
Given the nature of the Company's relationship with the parent company, our financial risks are born by the parent. The parent company is the principal debtor.

RECRUITMENT AND EMPLOYEE RELATIONS
Recruitment policies are designed to ensure equal opportunity of employment regardless of age, race or sex. Appropriate consideration is given to disabled applicants.

Employee satisfaction is key to our success and we have a proven record of high employee satisfaction and retention. We are proud of our culture and core values and our employees believe passionately in our mission and understand that each play a critical role in its execution.

COMPANY STRUCTURE
On July 17th, 2024, Exabeam and LogRhythm completed a merger. The group is going through restructuring and integration and at present, it is not possible to estimate the financial effect of the merger but management is optimistic that given the strengths of the products of legacy LogRhythm and legacy Exabeam, it will be beneficial for its joint customers, employees and investors.

LogRhythm Limited will continue to provide services via an intercompany agreement to LogRhythm, Inc.


LOGRHYTHM LIMITED (REGISTERED NUMBER: 06551670)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

COMPANY STRATEGY
Our parent company strategy is to continue to grow our market share through the delivery of our innovative integrated solution and our strong relationships with partners and customers. The company will continue to provide excellent sales, marketing, support and professional services to UK customers on behalf of the parent company.

ON BEHALF OF THE BOARD:





Mr B T Capoot - Director


23 September 2024

LOGRHYTHM LIMITED (REGISTERED NUMBER: 06551670)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

Mr B T Capoot
Mr N P Daviou
MR C T O'Malley

POLITICAL DONATIONS AND EXPENDITURE
During the year, £3,296 (2022: £3,051) of charitable donations were made, £nil of which were to political parties.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, 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, Richardson Jones, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr B T Capoot - Director


23 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LOGRHYTHM LIMITED

Opinion
We have audited the financial statements of Logrhythm Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LOGRHYTHM LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to LogRhythm Limited and the cybersecurity industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to the Sarbanes-Oxley Act, the Companies Act 2006 and UK tax legislation. Our procedures included:

- agreeing the financial statement disclosures to underlying supporting documentation
- enquiries with management
- understanding of management's internal controls designed to prevent and detect irregularities

There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LOGRHYTHM LIMITED


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.




David Porter (Senior Statutory Auditor)
for and on behalf of Richardson Jones
Chartered Accountants &
Registered Auditors
Mercury House
19-21 Chapel Street
Marlow
Buckinghamshire
SL7 3HN

23 September 2024

LOGRHYTHM LIMITED (REGISTERED NUMBER: 06551670)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £   

TURNOVER 4 11,136,568 10,489,404

Administrative expenses 10,812,139 10,194,650
OPERATING PROFIT 6 324,429 294,754

Interest receivable and similar income 2,769 288
327,198 295,042

Interest payable and similar expenses 7 - 475
PROFIT BEFORE TAXATION 327,198 294,567

Tax on profit 8 83,635 78,720
PROFIT FOR THE FINANCIAL YEAR 243,563 215,847

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

243,563

215,847

LOGRHYTHM LIMITED (REGISTERED NUMBER: 06551670)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 307,596 416,664

CURRENT ASSETS
Debtors 11 10,244,465 10,045,890
Cash at bank 312,368 316,319
10,556,833 10,362,209
CREDITORS
Amounts falling due within one year 12 731,915 1,042,388
NET CURRENT ASSETS 9,824,918 9,319,821
TOTAL ASSETS LESS CURRENT
LIABILITIES

10,132,514

9,736,485

PROVISIONS FOR LIABILITIES 14 76,899 104,166
NET ASSETS 10,055,615 9,632,319

CAPITAL AND RESERVES
Called up share capital 15 100 100
Retained earnings 16 10,055,515 9,632,219
SHAREHOLDERS' FUNDS 10,055,615 9,632,319

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2024 and were signed on its behalf by:





Mr B T Capoot - Director


LOGRHYTHM LIMITED (REGISTERED NUMBER: 06551670)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 100 9,254,401 9,254,501

Changes in equity
Total comprehensive income - 215,847 215,847
Credit to equity for equity
settled share-based payments - 161,971 161,971
Balance at 31 December 2022 100 9,632,219 9,632,319

Changes in equity
Total comprehensive income - 243,563 243,563
Credit to equity for equity
settled share-based payments - 179,733 179,733
Balance at 31 December 2023 100 10,055,515 10,055,615

LOGRHYTHM LIMITED (REGISTERED NUMBER: 06551670)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

Logrhythm Limited is a private company limited by shares incorporated and registered in England and Wales. The registered office and principal place of business is Clarion House, Norreys Drive, Maidenhead, Berkshire, England, SL6 4FL.

The company's principal activities and nature of its operations are disclosed in the Directors' Report.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 £1.

The financial statements have been prepared under the historical cost convention.The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

o Section 7 'Statement of Cash Flows' - Presentation of a statement of cash flow and related notes and disclosures;
o Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues' - Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values;
o Section 26 'Share-based Payment' - Reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
o Section 33 'Related Party Disclosures' - Compensation for key management personnel.


The financial statements of the company are consolidated in the financial statements of LogRhythm Inc. The consolidated financial statements of LogRhythm Inc. are available from 385 Interlocken Crescent, Suite 1050, Broomfield, CO 80021, USA.

Going concern
The financial statements have been prepared on the going concern basis as the company is reliant on its parent, LogRhythm Inc., for its continuing working capital and funding. The company's parent company, has provided written confirmation of their willingness to provide continued financial support to the company for the foreseeable future, defined as at least 12 months from the date of signing the LogRhythm Limited financial statements for the year ended 31 December 2023. LogRhythm Inc. has prepared group forecasts covering a period of at least 12 months from the date of approval of these financial statements which take into consideration the possible impact of the Coronavirus (Covid-19) global pandemic on the group's operations. These forecasts indicate that the group has sufficient funding and resources available to it to enable the group to meet its forecasted operating expenditure for at least 12 months from the date of signing these financial statements. On this basis, the directors consider it appropriate to prepare these financial statements on the going concern basis.

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.

LOGRHYTHM LIMITED (REGISTERED NUMBER: 06551670)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Turnover
The turnover shown in the income statement represents amounts receivable from the ultimate parent company undertaking during the year, for the provision of sales and marketing support functions, exclusive of Value Added Tax.

Turnover in respect of services provided to the ultimate parent undertaking is calculated as attributable costs plus in accordance with a transfer pricing agreement between the company and the ultimate parent undertaking.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - in accordance with the lease
Fixtures and fittings - 20% on cost
Computer equipment - 33% on cost

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.

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include other debtors, amounts owed by group undertakings and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Foreign currencies
Transactions in currencies other than the functional currency (foreign currency) are initially recorded at the exchange rate prevailing on the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction, or, if the asset or liability is measured at fair value, the rate when that fair value was determined.

All translation differences are taken to profit or loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income.

LOGRHYTHM LIMITED (REGISTERED NUMBER: 06551670)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Leases
Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight-line basis over the term of the relevant lease.

Pension costs and other post-retirement benefits
For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.

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.

Share-based payments
The company participates in a group share-based payment plan, which recognises and measures its share-based payment expense on the basis of a reasonable allocation of the expense recognised for the group. The allocation is based on the number of employees benefitting from the share-based payment plan employed by each group entity.

3. JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.12.23 31.12.22
£    £   
Provision of services 11,136,568 10,489,404
11,136,568 10,489,404

LOGRHYTHM LIMITED (REGISTERED NUMBER: 06551670)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

4. TURNOVER - continued

An analysis of turnover by geographical market is given below:

31.12.23 31.12.22
£    £   
United States of America 11,136,568 10,489,404
11,136,568 10,489,404

5. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 6,233,334 6,260,887
Social security costs 812,830 757,295
Other pension costs 279,678 266,395
7,325,842 7,284,577

The average number of employees during the year was as follows:
31.12.23 31.12.22

Administrative 3 4
Support 21 25
Sales 18 20
PS 9 9
Marketing 5 5
56 63

31.12.23 31.12.22
£    £   
Directors' remuneration - -

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.23 31.12.22
£    £   
Other operating leases 63,315 121,595
Depreciation - owned assets 202,969 153,296
Loss on disposal of fixed assets - 7,939
Auditors' remuneration 11,500 12,000
Foreign exchange differences (63 ) 2,719
Share-based payments 179,733 161,971

7. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
£    £   
Bank interest - 475

LOGRHYTHM LIMITED (REGISTERED NUMBER: 06551670)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.23 31.12.22
£    £   
Current tax:
UK corporation tax 155,570 52,116
Overprovision of tax in
previous periods 264 1,848
Total current tax 155,834 53,964

Deferred tax (72,199 ) 24,756
Tax on profit 83,635 78,720

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.23 31.12.22
£    £   
Profit before tax 327,198 294,567
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

81,800

55,968

Effects of:
Expenses not deductible for tax purposes 52,382 35,225
Capital allowances in excess of depreciation - (39,077 )
Depreciation in excess of capital allowances 31,318 -
Adjustments to tax charge in respect of previous periods 264 1,848
Adjustment to deferred tax (72,199 ) 24,756
Adjustment for mid-year tax rate charge (9,930 ) -
Total tax charge 83,635 78,720

9. SHARE-BASED PAYMENTS

The company operates an equity settled share option plan whereby some employees are granted shares in the parent company, Logrhythm Inc.

All options granted will be eligible to be exercised as long as the following vesting conditions are satisfied.

The share options may not be exercised 90 days beyond the date which the optionee no longer holds employment and with any member of the group or has given notice or termination of their employment with any member of the group.

All options will lapse within 10 years of grant.

LOGRHYTHM LIMITED (REGISTERED NUMBER: 06551670)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

10. TANGIBLE FIXED ASSETS
Fixtures
Short and Computer
leasehold fittings equipment Totals
£    £    £    £   
COST
At 1 January 2023 178,124 177,920 1,199,051 1,555,095
Additions 10,458 - 103,087 113,545
Disposals - - (111,806 ) (111,806 )
Transfer to ownership - - 28,659 28,659
Reclassification/transfer - - (41,395 ) (41,395 )
At 31 December 2023 188,582 177,920 1,177,596 1,544,098
DEPRECIATION
At 1 January 2023 178,124 177,342 782,965 1,138,431
Charge for year 1,610 495 200,864 202,969
Eliminated on disposal - - (111,806 ) (111,806 )
Transfer to ownership - - 12,768 12,768
Reclassification/transfer - - (5,860 ) (5,860 )
At 31 December 2023 179,734 177,837 878,931 1,236,502
NET BOOK VALUE
At 31 December 2023 8,848 83 298,665 307,596
At 31 December 2022 - 578 416,086 416,664

11. DEBTORS
31.12.23 31.12.22
£    £   
Amounts falling due within one year:
Amounts owed by group undertakings 9,515,831 9,331,055
Deferred tax asset 260,915 215,982
VAT 47,814 88,729
Prepayments and accrued income 287,942 301,125
10,112,502 9,936,891

Amounts falling due after more than one year:
Other debtors 131,963 108,999

Aggregate amounts 10,244,465 10,045,890

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade creditors 9,364 87,572
Corporation tax 116,570 13,613
Social security and other taxes 200,940 214,875
Other creditors 44,662 44,282
Accrued expenses 360,379 682,046
731,915 1,042,388

LOGRHYTHM LIMITED (REGISTERED NUMBER: 06551670)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.23 31.12.22
£    £   
Within one year 63,315 63,315
Between one and five years 26,381 75,154
89,696 138,469

14. PROVISIONS FOR LIABILITIES
31.12.23 31.12.22
£    £   
Deferred tax 76,899 104,166

Deferred
tax
£   
Balance at 1 January 2023 104,166
Utilised during year (27,267 )
Balance at 31 December 2023 76,899

Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

LiabilitiesLiabilitiesAssetsAssets
31.12.2331.12.2231.12.2331.12.22
££££

Balances:

Accelerated capital allowances76,899104,166
Share based payments260,915215,980
76,899104,166260,915215,980

Movements in the year:31.12.23
£
Liability/(Asset) at 1 January 2023(111,814)
Charge to profit or loss(72,200)
Asset at 31 December 2023(184,016)

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
100 Ordinary 1 100 100

Each share carries full voting rights and entitlement to dividends and capital.

LOGRHYTHM LIMITED (REGISTERED NUMBER: 06551670)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

16. RESERVES
Retained
earnings
£   

At 1 January 2023 9,632,219
Profit for the year 243,563
Credit to equity for equity
settled share-based payments 179,733
At 31 December 2023 10,055,515

17. PENSION COMMITMENTS

31.12.23 31.12.22
£ £

Charge to profit or loss in respect of defined contribution schemes279,678266,395

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions totalling £43,247 (2022: £42,978) were payable to the fund at the year end and are included in other creditors.

18. POST BALANCE SHEET EVENTS

On July 17th, 2024 LogRhythm, Inc and Exabeam, Inc. completed a merger. As part of the merger agreement Exabeam, Inc. was converted to Exabeam, LLC, a wholly owned subsidiary of LogRhythm, Inc.

LogRhythm Limited continues to be a wholly owned subsidiary of LogRhythm Inc. LogRhythm Limited will continue it's business operations.

It is not possible to estimate the financial effect of the merger at this time.

19. ULTIMATE CONTROLLING PARTY

The directors regard LogRhythm Inc, a company incorporated under the laws of the state of Delaware, USA, to be the immediate parent undertaking by virtue of holding 100% of the issued shares. They are the smallest group for which consolidated accounts are available.

A copy of the consolidated financial statements can be obtained from LogRhythm Inc at their registered office: 385 Interlocken Crescent, Suite 1050, Broomfield, CO 80021, USA.

The directors do not consider there to be an ultimate controlling individual.