Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-3114815falseArk Funding Delaware Corp.Ark Invest Holidng LLC447833170872023-01-011515falsefalsefalse 11770079 2022-12-31 11770079 2023-01-01 2023-12-31 11770079 2021-10-01 2022-09-30 11770079 2023-12-31 11770079 2022-09-30 11770079 2021-10-01 11770079 c:PriorPeriodIncreaseDecrease 2021-10-01 2022-09-30 11770079 1 2023-01-01 2023-12-31 11770079 1 2021-10-01 2022-09-30 11770079 1 2023-01-01 2023-12-31 11770079 e:CompanySecretary1 2023-01-01 2023-12-31 11770079 e:Director1 2023-01-01 2023-12-31 11770079 e:Director1 2023-12-31 11770079 e:Director2 2023-01-01 2023-12-31 11770079 e:Director3 2023-01-01 2023-12-31 11770079 e:Director3 2023-12-31 11770079 e:Director4 2023-01-01 2023-12-31 11770079 e:Director5 2023-01-01 2023-12-31 11770079 e:Director5 2023-12-31 11770079 e:Director6 2023-01-01 2023-12-31 11770079 e:Director6 2023-12-31 11770079 e:Director7 2023-01-01 2023-12-31 11770079 e:Director7 2023-12-31 11770079 e:Director8 2023-01-01 2023-12-31 11770079 e:Director8 2023-12-31 11770079 e:Director9 2023-01-01 2023-12-31 11770079 e:Director9 2023-12-31 11770079 e:Director10 2023-01-01 2023-12-31 11770079 e:Director10 2023-12-31 11770079 e:Director11 2023-01-01 2023-12-31 11770079 e:Director11 2023-12-31 11770079 e:RegisteredOffice 2023-01-01 2023-12-31 11770079 e:Agent1 2023-01-01 2023-12-31 11770079 c:ComputerEquipment 2023-01-01 2023-12-31 11770079 c:ComputerEquipment 2023-12-31 11770079 c:ComputerEquipment 2022-09-30 11770079 c:ComputerEquipment c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 11770079 c:CurrentFinancialInstruments 2023-12-31 11770079 c:CurrentFinancialInstruments 2022-09-30 11770079 c:CurrentFinancialInstruments c:WithinOneYear 2023-12-31 11770079 c:CurrentFinancialInstruments c:WithinOneYear 2022-09-30 11770079 c:ReportableOperatingSegment1 2023-01-01 2023-12-31 11770079 c:ReportableOperatingSegment1 2021-10-01 2022-09-30 11770079 c:ReportableOperatingSegment7 2023-01-01 2023-12-31 11770079 c:ReportableOperatingSegment7 2021-10-01 2022-09-30 11770079 f:UnitedKingdom 2023-01-01 2023-12-31 11770079 f:UnitedKingdom 2021-10-01 2022-09-30 11770079 c:ShareCapital 2023-01-01 2023-12-31 11770079 c:ShareCapital 2023-12-31 11770079 c:ShareCapital 2021-10-01 2022-09-30 11770079 c:ShareCapital 2022-09-30 11770079 c:ShareCapital 2021-10-01 11770079 c:SharePremium 2023-01-01 2023-12-31 11770079 c:SharePremium 2023-12-31 11770079 c:SharePremium 2021-10-01 2022-09-30 11770079 c:SharePremium 2022-09-30 11770079 c:SharePremium c:PriorPeriodIncreaseDecrease 2021-10-01 2022-09-30 11770079 c:SharePremium 2021-10-01 11770079 c:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 11770079 c:RetainedEarningsAccumulatedLosses 2023-12-31 11770079 c:RetainedEarningsAccumulatedLosses 2021-10-01 2022-09-30 11770079 c:RetainedEarningsAccumulatedLosses 2022-09-30 11770079 c:RetainedEarningsAccumulatedLosses c:PriorPeriodIncreaseDecrease 2021-10-01 2022-09-30 11770079 c:RetainedEarningsAccumulatedLosses 2021-10-01 11770079 e:OrdinaryShareClass1 2023-01-01 2023-12-31 11770079 e:OrdinaryShareClass1 2023-12-31 11770079 e:OrdinaryShareClass1 2022-09-30 11770079 e:OrdinaryShareClass2 2023-01-01 2023-12-31 11770079 e:OrdinaryShareClass2 2023-12-31 11770079 e:OrdinaryShareClass2 2022-09-30 11770079 e:OrdinaryShareClass3 2023-01-01 2023-12-31 11770079 e:OrdinaryShareClass3 2022-09-30 11770079 e:OrdinaryShareClass4 2023-01-01 2023-12-31 11770079 e:OrdinaryShareClass4 2022-09-30 11770079 e:OrdinaryShareClass5 2023-01-01 2023-12-31 11770079 e:OrdinaryShareClass5 2023-12-31 11770079 e:OrdinaryShareClass5 2022-09-30 11770079 e:FRS102 2023-01-01 2023-12-31 11770079 e:Audited 2023-01-01 2023-12-31 11770079 e:FullAccounts 2023-01-01 2023-12-31 11770079 e:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 11770079 c:WithinOneYear 2023-12-31 11770079 c:WithinOneYear 2022-09-30 11770079 2 2023-01-01 2023-12-31 11770079 g:PoundSterling 2023-01-01 2023-12-31 11770079 c:ShareCapital c:PriorPeriodErrorIncreaseDecrease 2021-10-01 2022-09-30 11770079 c:RetainedEarningsAccumulatedLosses c:PreviouslyStatedAmount 2021-10-01 11770079 c:PreviouslyStatedAmount 2021-10-01 11770079 c:OtherRelatedPartyRelationshipType1ComponentTotalRelatedParties 2023-01-01 2023-12-31 11770079 c:OtherRelatedPartyRelationshipType2ComponentTotalRelatedParties 2023-01-01 2023-12-31 11770079 c:OtherRelatedParties 2023-01-01 2023-12-31 11770079 c:OtherTransactionType1 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 11770079
















ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)




DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD FROM 1 OCTOBER 2022 TO 31 DECEMBER 2023

































ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)

 
COMPANY INFORMATION


DIRECTORS
Rahul Bhushan (resigned 19 September 2023)
Stuart William Alexander Forbes 
Jason Spencer Kennard (resigned 19 September 2023)
Anthony James Martin 
Gary John Collins (resigned 31 January 2023)
Gordon Joseph Neilly (resigned 19 September 2023)
Thomas Gregory Staudt (appointed 19 September 2023, resigned 25 September 2024)
Paul Edward Wilson (appointed 19 September 2023, resigned 25 September 2024)
Dana Forest Wolfe (appointed 19 September 2023)
Catherine Duddy Wood (appointed 19 September 2023, resigned 25 September 2024)
Campbell David Fleming (appointed 31 January 2023, resigned 19 September 2023)




COMPANY SECRETARY
Foot Anstey Secretarial Limited



REGISTERED NUMBER
11770079



REGISTERED OFFICE
3rd Floor
2 Glass Wharf

Bristol

BS2 0EL




INDEPENDENT AUDITORS
Ernst & Young Chartered Accountants
Chartered Accountants & Statutory Auditors

EY Building

Harcourt Centre

Harcourt Street

Dublin 2

Ireland

D02 YA40




SOLICITORS
Foot Anstey LLP
2 Glass Wharf

Bristol

BS2 0FR






ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)


CONTENTS



Page
Directors' report
 
1 - 2
Directors' responsibilities statement
 
3
Independent auditors' report
 
4 - 7
Statement of comprehensive income
 
8
Statement of financial position
 
9
Statement of changes in equity
 
10
Statement of cash flows
 
11
Analysis of net debt
 
12
Notes to the financial statements
 
13 - 26


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)

 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the period ended 31 December 2023.

PRINCIPAL ACTIVITIES

The principal activity of the Company during the financial period was the marketing and promotion of Collective
Asset Management Vehicles.

DIRECTORS

The directors who served during the period were:

Rahul Bhushan (resigned 19 September 2023)
Stuart William Alexander Forbes 
Jason Spencer Kennard (resigned 19 September 2023)
Anthony James Martin 
Gary John Collins (resigned 31 January 2023)
Gordon Joseph Neilly (resigned 19 September 2023)
Thomas Gregory Staudt (appointed 19 September 2023, resigned 25 September 2024)
Paul Edward Wilson (appointed 19 September 2023, resigned 25 September 2024)
Dana Forest Wolfe (appointed 19 September 2023)
Catherine Duddy Wood (appointed 19 September 2023, resigned 25 September 2024)
Campbell David Fleming (appointed 31 January 2023, resigned 19 September 2023)

PRINCIPAL RISKS AND UNCERTAINTIES

The Company markets and promotes the funds of Europe’s first thematic ETF specialist.
The Company is principally exposed to market risk that can result in liquidity risk where the Company does not
have sufficient funding to pay its operational costs and fees to third parties.
The primary source of revenue is linked to the assets under management of the ETFs being promoted. There
are a number of factors to mitigate this risk. Since the previous financial year, 3 new ETFs have launched and 4 have been closed. As a result, we have seen increased diversification of AUM amongst the current range of 7 ETFs, with further ETFs expected to launch in 2024. Further increase in diversification is expected where a range of 3 active innovation strategies are expected to launch in the first half of 2024, thereby further diversifying the exposures being provided to investors. 
In terms of working capital, the acquisition on 19 September 2023 by ARK Invest Holding secured long term funding for the Companty to accelerate growth and reach profitability.
The environment over the past few years has caused challenges, with inflation increasing and record increases in interest rates. However, it is now commonly believed that this has peaked and this in turn is expected to provide more favourable market conditions for growth in assets under management. 
The company is still loss making and therefore until profitability there will be periodic funding requirements
depending on the growth in assets under management of the ETFs and therefore the revenue.
 
FUTURE DEVELOPMENTS

Following the acquisition in September 2023, the company is in the process of facilitating the build out of three new ETFs based on innovation themes that will be actively managed by the parent company. These are still subject to regulatory approval. The equivalent ETFs that are domiciled in the US have in excess of USD 10 billion in assets. The new ETFs will be largely the same exposures but with a European domicile to cater to European investors. This will enhance the current offering adding diversification in the wider offering with both sustainability focused passive ETFs and innovation focused active ETFs.  
We continue to see thematics and sustainability as key areas of growth for assets in Europe.

Page 1


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

POST BALANCE SHEET EVENTS

The directors are not aware of any events that have occurred subsequent to the 31 December 2023 which might
have a material impact on the interpretation of these financial statements.

INDEPENDENT AUDITORS

The auditorsErnst & Young Chartered Accountantswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

SMALL COMPANIES NOTE

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 






Anthony James Martin
Director

Date: 26 September 2024

3rd Floor
2 Glass Wharf
Bristol
BS2 0EL

Page 2


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)

 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2023

The directors are responsible for preparing the Directors' report and the audited 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 prepared the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

Under company law, 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 the financial statements, the directors are required to:

select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

DIRECTORS' CONFIRMATIONS
In the case of each director in office at the date the directors’ report is approved:

so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware; and
they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 3


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)
 
OPINION


We have audited the financial statements of Ark Invest International Limited for the period from 1 October 2022 to 31 December 2023 which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity the Statement of cash flows and the related notes 1 to 24, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including FRS 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 loss for the period 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 United Kingdom, including the Financial Reporting Council'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.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company's ability to continue as a going concern.





Page 4


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED) (CONTINUED)

OTHER INFORMATION


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report
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. 
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 course of 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.


OPINION 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 Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Directors' report has 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 Directors' report.


We have nothing to report in respect of the following matters in relation to which 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.


RESPONSIBILITIES OF DIRECTORS
 

As explained more fully in the Directors' responsibilities statement, 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 is 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.


Page 5


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED) (CONTINUED)

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 an Auditors' report 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.


EXPLANATION AS TO WHAT EXTENT THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
 
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006) in the United Kingdom. In addition, the Company has to comply with laws and regulations relating to its operations.
We understood how the Company is complying with those frameworks by making enquiries of management to understand how the Company maintains and communicates its policies and procedures in these areas and corroborated this by reviewing supportinf documentation. We also reviewed correspondence with relevant authorities.
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by considering the risk of management override and by assuming revenue to be a fraud risk. We performed testing of manual journals, including segregation of duties, and into our testing of revenue recognition. We tested specific transactions backing to source documentation or independent confirmation, ensuring appropriate authorisation of the transactions.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved testing journals identified by specific risk criteria.



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 Auditors' report.


Page 6


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED) (CONTINUED)

USE OF THIS 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 2006Our 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 an Auditors' report 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.






Kieran Daly (Senior statutory auditor)
for and on behalf of
Ernst & Young Chartered Accountants
Chartered Accountants
Statutory Auditors
EY Building
Harcourt Centre
Harcourt Street
Dublin 2
Ireland
D02 YA40

26 September 2024
Page 7


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)

 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD FROM 1 OCTOBER 2022 TO 31 DECEMBER 2023

As restated
2023
2022
Note
£
£

  

Turnover
 4 
2,118,027
1,940,234

Cost of sales
  
(5,123,317)
(3,932,362)

Gross loss
  
(3,005,290)
(1,992,128)

Administrative expenses
  
(463,647)
(557,530)

Operating loss
 6 
(3,468,937)
(2,549,658)

Interest receivable and similar income
  
12
-

Interest payable and similar expenses
 11 
(247)
-

Loss before tax
  
(3,469,172)
(2,549,658)

Tax on loss
 12 
-
7,931

Loss for the financial period
  
(3,469,172)
(2,541,727)

There were no recognised gains and losses for the period to 31 December 2023 or the year to 30 September 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for the period to 31 December 2023 (the year to 30 September 2022: £NIL).

The notes on pages 13 to 26 form part of these financial statements.
Page 8


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)
REGISTERED NUMBER:11770079

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
13,623
21,188

  
13,623
21,188

Current assets
  

Debtors: amounts falling due within one year
 14 
482,730
515,427

Cash at bank and in hand
  
186,817
1,555,686

  
669,547
2,071,113

Creditors: amounts falling due within one year
 15 
(1,047,361)
(461,073)

Net current (liabilities)/assets
  
 
 
(377,814)
 
 
1,610,040

Total assets less current liabilities
  
(364,191)
1,631,228

  

Net (liabilities)/assets
  
(364,191)
1,631,228


Capital and reserves
  

Called up share capital 
 17 
6,724,130
5,250,377

Share premium account
 18 
2,735,910
2,735,910

Profit and loss account
 18 
(9,824,231)
(6,355,059)

  
(364,191)
1,631,228


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





Anthony James Martin
Director

Date: 26 September 2024

Page 9


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)



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



Called up share capital
Share premium account
Profit and loss account
Total equity


£
£
£
£



At 1 October 2021 (as reported)
5,250,377
2,735,910
(3,727,308)
4,258,979


Prior year adjustment (see note 19)
-
-
(86,024)
(86,024)



At 1 October 2021 (as restated)
5,250,377
2,735,910
(3,813,332)
4,172,955



Comprehensive income for the year


Loss for the year (as restated - see note 19)
-
-
(2,541,727)
(2,541,727)

Total comprehensive income for the year (as restated - see note 19)
-
-
(2,541,727)
(2,541,727)





At 1 October 2022 (as restated - see note 19)
5,250,377
2,735,910
(6,355,059)
1,631,228



Comprehensive income for the period


Loss for the period
-
-
(3,469,172)
(3,469,172)

Total comprehensive income for the period
-
-
(3,469,172)
(3,469,172)



Contributions by and distributions to owners


Shares issued during the period
1,473,753
-
-
1,473,753



Total transactions with owners
1,473,753
-
-
1,473,753



At 31 December 2023
6,724,130
2,735,910
(9,824,231)
(364,191)



The notes on pages 13 to 26 form part of these financial statements.
Page 10


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)


STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Loss for the financial period
(3,469,172)
(2,541,727)

Adjustments for:

Depreciation of tangible assets
7,565
5,435

Interest paid
247
-

Interest received
(12)
-

Decrease/(increase) in debtors
32,697
(113,040)

Increase in creditors
121,367
2,956

Increase in amounts owed to groups
464,920
-

Increase/(decrease) in provisions
-
(7,931)

Net cash generated from operating activities

(2,842,388)
(2,654,307)


Cash flows from investing activities

Purchase of tangible fixed assets
-
(14,225)

Interest received
12
-

Net cash from investing activities

12
(14,225)

Cash flows from financing activities

Issue of ordinary shares
1,473,754
-

Interest paid
(247)
-

Net cash used in financing activities
1,473,507
-

Net (decrease) in cash and cash equivalents
(1,368,869)
(2,668,532)

Cash and cash equivalents at beginning of period
1,555,686
4,224,218

Cash and cash equivalents at the end of period
186,817
1,555,686


Cash and cash equivalents at the end of period comprise:

Cash at bank and in hand
186,817
1,555,686


The notes on pages 13 to 26 form part of these financial statements.

Page 11


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)


ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

1,555,686

(1,368,869)

186,817


The notes on pages 13 to 26 form part of these financial statements.
Page 12


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)

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

1.


GENERAL INFORMATION

Ark Invest International Limited (formerly Rize ETF Limited) (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The registered number is 11770079. The address of the Company's registered office is 3 Glass Wharf, Bristol, BS2 0EL, United Kingdom. The Company's place of business is 30 Coleman Street, London, EC2R 5AL.
The prior year runs from 1 October 2021 to 30 September 2022. 
The current year runs from 1 October 2022 to 31 December 2023. The financial year end was changed to bring the Company's year end in line with its parent Company.
The prior year figures are therefore not entirely comparable with current year figures.

2.ACCOUNTING POLICIES

 
2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

GOING CONCERN

The Directors have reviewed the forecasts and projections for the business going forward for a period of at least 12 months and can confirm that the business remains a going concern. In doing so, the Directors have taken note of the commitment to funding by the parent company as detailed in the shareholder’s agreement for a period of at least three years from the date of the acquisition on 19 September 2023.

Page 13


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)

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

2.ACCOUNTING POLICIES (continued)

 
2.3

FOREIGN CURRENCY TRANSLATION

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.4

REVENUE

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

COST OF SALES

Cost of sales is comprised of costs directly incurred in relation to the main revenue generating activities of the Company. These are recognised on an accruals basis.

Page 14


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)

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

2.ACCOUNTING POLICIES (continued)

 
2.6

OPERATING LEASES: THE COMPANY AS LESSEE

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

INTEREST INCOME

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

FINANCE COSTS

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

PENSIONS

DEFINED CONTRIBUTION PENSION PLAN

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.10

CURRENT AND DEFERRED TAXATION

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 15


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)

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

2.ACCOUNTING POLICIES (continued)

 
2.11

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Computer equipment
-
5
years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans 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.

Accrued income consists of income for which the Company is entitled to that has not yet been invoiced.

 
2.13

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.
Page 16


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)

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

2.ACCOUNTING POLICIES (continued)

 
2.14

CREDITORS

Short-term creditors 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.

 
2.15

SHARE CAPITAL

The share capital of the Company is presented as equity. 


3.



JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The Directors are of the opinion that there are no significant accounting estimates or judgements.


4.


TURNOVER

An analysis of turnover by class of business is as follows:


2023
2021
£
£

Marketing agent fee income
2,040,510
1,724,182

Internal recharges
77,517
216,052

2,118,027
1,940,234


Analysis of turnover by country of destination:

2023
2021
£
£

United Kingdom
2,118,027
1,940,234

2,118,027
1,940,234


Page 17


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)

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

5.


COST OF SALES

As restated
2023
2022
£
£



Wages, salaries and social secuity costs (including Directors)
1,964,593
1,548,688

Licences, index data fees and marketing agent costs
2,587,178
1,643,730

Advertising and marketing
434,877
712,562

Legal and professional
121,669
27,385

5,108,317
3,932,365


6.


OPERATING LOSS

The operating loss is stated after charging:

As restated
2023
2022
£
£

Exchange differences
(3,023)
2,804

Other operating lease rentals
-
61,110

Depreciation
7,565
5,435


7.


AUDITORS' REMUNERATION

2023
2022
£
£

Fees payable to the Company's auditors and their associates in respect of:

The audit of the Company's financial statements
39,000
45,000

The Company has changed its auditor for the period to 31 December 2023 and the amounts in prior year were due to the previous auditor.
No non-audit services were provided by the current auditor (2022: none).

Page 18


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)

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

8.


EMPLOYEES

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
1,685,774
1,318,820

Social security costs
219,575
175,614

Cost of defined contribution scheme
59,244
42,505

1,964,593
1,536,939


The average monthly number of employees, including the directors, during the period was as follows:


        2023
        2022
            No.
            No.







Directors
6
6



Employees
9
9

15
15

Page 19


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)

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

9.


DIRECTORS' REMUNERATION

2023
2022
£
£

Directors' emoluments
438,692
368,251

Company contributions to defined contribution pension schemes
15,308
14,400

454,000
382,651


During the period retirement benefits were accruing to 4 directors (2022: 4) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £129,346 (2022: £94,032).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £5,174 (2022: £3,600).


10.


INTEREST RECEIVABLE

2023
2022
£
£


Other interest receivable
12
-


11.


INTEREST PAYABLE AND SIMILAR EXPENSES

2023
2022
£
£


Other interest payable
247
-
Page 20


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)

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

12.


TAXATION


2023
2022
£
£



TOTAL CURRENT TAX
-
-

DEFERRED TAX


Origination and reversal of timing differences
-
(7,931)

TOTAL DEFERRED TAX
-
(7,931)


TAXATION ON PROFIT/(LOSS) ON ORDINARY ACTIVITIES
-
(7,931)

FACTORS AFFECTING TAX CHARGE FOR THE PERIOD/YEAR

The tax assessed for the period is higher than (2022: the same as) the standard rate of corporation tax in the UK of 22.61% (2022: 19%). The differences are explained below:

As restated
2023
2022
£
£


Loss on ordinary activities before tax
(3,469,172)
(2,549,658)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 22.61% (2022: 19%)
(784,397)
(484,435)

EFFECTS OF:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
5,228
5,299

Capital allowances for period/year in excess of depreciation
-
(1,495)

Remeasurement of deferred tax for changes in tax rates
(82,343)
(151,691)

Movement in deferred tax not recognised
882,481
624,115

Adjustments to tax charge in respect of prior periods
(20,969)
-

Other differences leading to an increase (decrease) in the tax charge
-
276

TOTAL TAX CHARGE FOR THE PERIOD/YEAR
-
(7,931)


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

From 1 April 2023, the corporation tax rate increased from 19% to 25%.

Page 21


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)

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

13.


TANGIBLE FIXED ASSETS





Computer equipment

£



COST OR VALUATION


At 1 January 2023
30,260



At 31 December 2023

30,260



DEPRECIATION


At 1 January 2023
9,072


Charge for the period on owned assets
7,565



At 31 December 2023

16,637



NET BOOK VALUE



At 31 December 2023
13,623



At 30 September 2022
21,188


14.


DEBTORS

2023
2022
£
£


Trade debtors
82,421
90,086

Other debtors
99,628
35,855

Prepayments and accrued income
300,681
389,486

482,730
515,427



15.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023
2022
£
£

Trade creditors
81,053
61,306

Amounts owed to group undertakings
464,920
-

Other taxation and social security
152,053
-

Other creditors
7,990
-

Accruals and deferred income
341,345
399,767

1,047,361
461,073


Page 22


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)

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

16.


DEFERRED TAXATION


Deferred tax assets totalling £2,442,722 (2022: £1,581,210 as restated, £1,560,241 as previously reported) in respect of losses have not been recognised in the accounts at the period (2022: year) end. 


17.


CALLED UP SHARE CAPITAL

2023
2022
£
£
ALLOTTED, CALLED UP AND FULLY PAID



57,374 (2022: 100,000) A Ordinary shares of £0.001 each
57
100
318,559 (2022: 257,890) B Ordinary shares of £0.001 each
319
258
Nil (2022: 10,524) C Ordinary shares of £0.001 each
-
11
Nil (2022: 7,519) D Ordinary shares of £0.001 each
-
8
6,723,754 (2022: 5,250,000) Preference shares of £1.000 each
6,723,754
5,250,000

6,724,130

5,250,377

The shares hold the following rights:
A Ordinary: Full voting, dividend, and capital distribution (including on winding up) rights. They do not confer any rights of redemption.
B Ordinary: Full voting, dividend, and capital distribution (including on winding up) rights. They do not confer any rights of redemption.
C Ordinary: Full voting, dividend, and capital distribution (including on winding up) rights. They do not confer any rights of redemption.
D ordinary: Do not entitle the holder to vote. The shares (to the extent vested) carry the rights to dividends. The shares (to the extent vested) are entitled to participate in capital distributions (including on winding up) in accordance with the terms of the Articles and Shareholders' Agreement. The unvested shares are not entitles to participate in any dividends of any capital distributions (including on winding up). They shares do not confer any rights of redemption. 
Preference shares: Do not entitle the holder to vote and do not carry the right to any dividends. The shares are entitled to participate in capital distributions (including on winding up) in accordance with the terms of the Articles and Shareholders' Agreement. The Shareholders' Agreement states that the Preference shares are redeemable at the issuer's discretion, and do not carry the right to any dividends. On this basis, the Preference shares have been classified as equity.


Page 23


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)

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

17.CALLED UP SHARE CAPITAL (CONTINUED)

On 19 September 2023, the company allotted 975,000 Preference £1 shares, and issued them at par value. 
On 19 September 2023, the company also redesignated the following shares:
48,860 A Ordinary £0.001 shares were redesignated to B Ordinary £0.001 shares
5,264 C Ordinary £0.001 shares were redesignated to A Ordinary £0.001 shares
5,260 C Ordinary £0.001 shares were redesignated to B Ordinary £0.001 shares
970 D Ordinary £0.001 shares were redesignated to A Ordinary £0.001 shares
6,549 D Ordinary £0.001 shares were redesignated to B Ordinary £0.001 shares
On 17 November 2023, the company allotted 298,754 Preference £1 shares, and issued them at par value. 
On 3 December 2023, the company allotted 200,000 Preference £1 shares, and issued them at par value.
The share transactions and redesignations that occurred on 19 September 2023 were part of a takeover during the year. At the period end, the A shares were held by four Directors and one employee. The B shares were held by Ark Invest Holding LLC and the preference shares were held by Ark Funding Delaware Corp and Ark Invest Holding LLC.


18.


RESERVES

Share premium account

The share premium account represents consideration received for shares in excess of par value.

Profit and loss account

The profit and loss reserve represents all current and prior period retained profits and losses.

Page 24


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)

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

19.


PRIOR YEAR ADJUSTMENT

A prior year adjustment has been made in respect of intangible assets that had previously been capitalised. The previously capitalised intangibles, in respect of website assets, did not meet the definition of an intangible asset under FRS102. Therefore, retrospective adjustments have been made to expense these costs to the Statement of Comprehensive Income.
The net book value of the intangible assets at 30 September 2021 was £86,024, and this amount has been transferred to retained earnings. Retained earnings at 1 October 2021 were (£3,727,308) prior to the adjustment, and have been restated at (£3,813,332). 
The following lines in the financial statements for the prior year comparative (2022) have been affected as a result of this:
Net book value of intangibles at 30 September 2022 - £87,476
Net book value of intangibles at 30 September 2022 (as reatated) - £Nil
Advertising and marketing costs (Cost of Sales) for the year to 30 September 2022 - £700,562
Advertising and marketing costs (Cost of Sales) for the year to 30 September 2022 (as restated) - £712,562
Amortisation expense (Administration expenses) for the year to 30 September 2022 - £10,548
Amortisation expense (Administration expenses) for the year to 30 September 2022 (as restated) - £Nil
The net effect on retained earnings in respect of adjustments made relating to the year ended 30 September 2022 was is £1,452.
In summary, intangible assets have been retrospectively adjusted to be £Nil. Retained earnings at 30 September 2022 previously reported as (£6,267,583) have been restated at (£6,355,059). The difference of £87,476 was the previously reported net book value of intangible assets at 30 September 2022.
 


20.


PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £59,244 (2022: £42,505). Contributions totalling £7,990 (2022: £Nil) were payable to the fund at the reporting date and are included in Other creditors.


21.


COMMITMENTS UNDER OPERATING LEASES

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
155,820
-

Page 25


ARK INVEST INTERNATIONAL LTD (FORMERLY RIZE ETF LIMITED)

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

22.


RELATED PARTY TRANSACTIONS

During the period, AssetCo plc agreed to reimburse Ark Invest International Limited for costs incurred in relation to the marketing agreement with the Company that Ark Invest International Limited act as marketing agent for. These costs amounted to £77,517 (2022: £216,052) and have been recognised as internal recharges. 
At the period end, Ark Invest International Limited was owed £nil (2022: £74,423) from AssetCo plc in respect of the fees noted above, and this is reflected in accrued income.
During the period, Ark Invest International Limited used AssetCo plc's office space free of charge. In December 2023 Ark Invest International signed a lease agreement with an unrelated third party to lease office space from January 2024.
During the period, Directors' incurred Company expenses of £13,155 (2022: £30,168) which are reimbursed as part of the payroll. 
At the period end, the Directors were owed £20 (2022: £227) of expenses to be reimbursed. The liability is recognised in trade creditors.
During the period, preference shares totalling £1,473,754 were issued to Ark Funding Delaware Corp. Payment for these preference shares and further cash injections to Ark Invest International Limited totalled £2,247,052. Ark Funding Delaware Corp also paid deferred consideration of £254,167 to the founders of the Company (in relation to the sale of shares in Ark Invest International Limited to Ark Invest Holding LLC), paid Stamp Duty totalling £56,425 due on the share purchase on behalf of Ark Invest Holding LLC (the controlling party from 19 September 2023), repaid a £14,815 loan due to an employee and paid £58 to cover employee expenses. At the period end, Ark Invest International Limited owed Ark Funding Delaware Corp £447,833. This creditor is disclosed in Amounts owed to Group Undertakings.
During the period, Ark Invest International Limited incurred management charges totalling £17,087 from Ark Investment Management LLC, with this amount still owed at the period end. This creditor is disclosed in Amounts owed to Group Undertakings.
Key management personnel are limited to directors. Transactions are disclosed in Note 9.


23.


POST BALANCE SHEET EVENTS

Since 31 December 2023, cash of £1,514,300 has been invested into the business by the parent company, in return for preference shares. This further supports the ability of the Company to continue to trade as a going concern.


24.


CONTROLLING PARTY

The parent Company was AssetCo plc, who held the majority shareholding up to 19 September 2023. The registered address of AssetCo plc is 30 Coleman Street, London, England, EC2R 5AL.
AssetCo plc held 68% of the equity of Ark Invest International Limited. Whilst the founders of the business had a material stake (which could have been increased by 5% points in the event of a sales “trigger” being met) there was in place a comprehensive shareholder agreement which confers considerable control to AssetCo plc via the appointment of Board representation and the way in which key matters have to be agreed including the ability to block resolutions as well as voting patterns. 
As at the period end, the parent Company and controlling party is Ark Invest Holding LLC, a company incorporated in the United States of America. Ark Invest Holding LLC is considered the controlling party by way of their majority stake in the voting shares.

 
Page 26