FARID AG HOLDINGS LIMITED

Company Registration Number:
08887546 (England and Wales)

Unaudited abridged accounts for the year ended 29 February 2024

Period of accounts

Start date: 01 March 2023

End date: 29 February 2024

FARID AG HOLDINGS LIMITED

Contents of the Financial Statements

for the Period Ended 29 February 2024

Balance sheet
Notes

FARID AG HOLDINGS LIMITED

Balance sheet

As at 29 February 2024


Notes

2024

2023


£

£
Called up share capital not paid: 1 1
Fixed assets
Intangible assets: 3 412,648 289,627
Tangible assets: 4 6,350 6,100
Total fixed assets: 418,998 295,727
Current assets
Stocks: 778,354 693,343
Cash at bank and in hand: 110,300 62,000
Total current assets: 888,654 755,343
Creditors: amounts falling due within one year: 5 (80,500) (73,000)
Net current assets (liabilities): 808,154 682,343
Total assets less current liabilities: 1,227,153 978,071
Total net assets (liabilities): 1,227,153 978,071
Capital and reserves
Called up share capital: 1 1
Profit and loss account: 1,227,152 978,070
Shareholders funds: 1,227,153 978,071

The notes form part of these financial statements

FARID AG HOLDINGS LIMITED

Balance sheet statements

For the year ending 29 February 2024 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

The members have agreed to the preparation of abridged accounts for this accounting period in accordance with Section 444(2A).

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The directors have chosen to not file a copy of the company’s profit & loss account.

This report was approved by the board of directors on 04 October 2024
and signed on behalf of the board by:

Name: STEPHEN JON MOORE
Status: Director

The notes form part of these financial statements

FARID AG HOLDINGS LIMITED

Notes to the Financial Statements

for the Period Ended 29 February 2024

1. Accounting policies

These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

Other accounting policies

Company Notes to the Accounts. 1. Strategic Partnerships and Non Disclosure Agreements NDAs. The company has established active NDAs with key partners in the precious metals innovation space, ensuring confidentiality in the development of new services and technologies. The company also collaborates with authorised distributors of LBMA London Bullion Market Association and or ISO 9001 2015 certified manufacturers and refineries, emphasising the high standards and credibility of the company's offerings in the bullion industry. 2. Fixed Assets. Fixed assets are estimated values for business equipment and other equipment used by the business. This estimate is based on collected data and may be updated in future filings. 3. Intangible Assets. The company's intangible assets consist of precious metal linked crypto assets that are tradeable, with a clear monetary value. These assets are directly linked to real time gold and silver prices and trade volumes. The company’s unique services are represented by trademarks partly granted and patent applications under preparation. These assets have not yet been fully accounted for in the current valuation of intangible assets, but they are expected to significantly uplift the company’s valuation upon completion of the patent process. 4. Market Risk Mitigation Hedging. The company employs market risk mitigation strategies, such as hedging, to manage exposure to fluctuations in precious metal prices and crypto asset volatility. These hedging strategies help to stabilise revenue and protect asset value against market swings. 5. Fair Value Accounting. The company uses fair value accounting for its crypto assets and other financial instruments. This approach ensures that the assets' valuation reflects their current market value, particularly in sectors where pricing is volatile and directly linked to precious metals markets gold, silver. 6. Provisioning and Contingent Liabilities. The company recognises provisioning and contingent liabilities related to Research and Development expenses and collaboration agreements. These provisions ensure that upcoming obligations for partner agreements, intellectual property development, and long term Research and Development projects are properly reflected in the accounts, ensuring accurate future projections. 7. Capital and Reserves. Retained earnings are 1,118,662 GBP, after accounting for the net loss of 108,490 GBP for the year ending February 2024. 8. Director's Responsibilities. The director acknowledges their responsibility for preparing the financial statements in accordance with the requirements of the Companies Act 2006. 9. Exemption from Audit. For the year ended 28 February 2024, the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit for its accounts in accordance with section 476 of the Act. 10. Business Developments and Diversified Revenue Streams. Historically, the company has focused on trading wholesale precious metals, including gold and silver bars and coins. 2024 has been a year of heavy investment into the retail ecommerce platform, which not only delivers bullion to the retail audience but also provides innovative 'new era' bullion services not seen before. The company’s unique relationship with an innovative partner has led to the development of an offshore workshop equipped with advanced tech machinery, enabling the company to incorporate additional 'jewellery' lines for diversified revenue streams in 2024 and 2025. Profit and Loss Statement Notes. 1. Revenue Breakdown. The company's revenue for the year ending 28 February 2024 amounted to 676,667 GBP. This includes sales from wholesale bullion trading and does not include any new retail bullion services launched through the ecommerce platform. The innovative 'new era' retail bullion services are expected to contribute more significantly in the coming financial year as the platform gains traction. 2. Cost of Sales COGS Clarification. Cost of Goods Sold includes the purchase of raw materials gold and silver bullion for resale to wholesale and retail clients. The company has also begun to incur costs associated with its new 'jewellery' line, which will diversify revenue streams starting in 2024. 2. Research and Development Spending. Research and Development expenses for 2024 include costs associated with the development of proprietary AI algorithms for pricing and risk management, as well as innovative services aimed at transforming how bullion is bought and sold. The Research and Development effort is also focused on customer education tools to simplify precious metals trading for retail clients. In the financial year ending February 2024, significant Research and Development efforts were made by key staff members, including 2 data scientists and 1 researcher, contributing a total of 1,924 hours to the development of innovative services, algorithms, and AI models. The hours breakdown is as follows. Data Scientist 1. 780 hours Data Scientist 2. 104 hours Researcher. 1,040 hours These contributions were unpaid, with no wages taken. The estimated value of this effort has been accounted for in the Research and Development expense, reflecting the equivalent market value of the hours worked. 4. Ecommerce Development. Ecommerce development costs represent the company's strategic investment in building a retail platform that offers both traditional bullion and new, innovative 'new era' services. This platform is expected to provide long term growth as it attracts retail customers seeking digital access to precious metals. The total ecommerce development cost for the year is 15,000 GBP, of which 7,000 GBP has been paid and 8,000 GBP remains outstanding. 5. Partner Collaboration. The company’s collaboration with an offshore workshop and an innovative partner has allowed for the expansion of the product range into customised jewellery made from precious metals, with the aim of diversifying revenue streams beyond traditional bullion trading. 6. Intellectual Property Development. Expenses related to intellectual property include consultancy costs for trademarks and patents, which protect the company’s innovative services. The company expects that these patents, once granted, will provide a competitive edge in offering unique bullion and jewellery services. 7. Taxation and Provisions. No tax was payable for the financial year ending February 2024 due to carried forward losses. Provisions have been made for contingencies related to ongoing Research and Development collaborations and further development of the ecommerce platform. 8. Forward Looking Statements. Looking ahead, the company anticipates that its continued investment in Research and Development and the expansion of its ecommerce platform will drive future revenue growth. The launch of new 'jewellery' lines and further innovations in bullion services are expected to establish the company strongly within the ‘new era’ precious metals market. 9. Depreciation and Amortization. Depreciation on fixed assets is calculated on a straight line basis over the useful life of the assets. Amortisation of intangible assets related to trademarks and patents will commence once the assets are fully developed and operational. 10. Employee Contributions Unpaid Research and Development. Significant contributions were made by the company’s data scientists and researchers, who devoted unpaid hours to developing the company’s AI based pricing models and the new innovative services. These contributions will have a lasting impact on the company’s future growth.

FARID AG HOLDINGS LIMITED

Notes to the Financial Statements

for the Period Ended 29 February 2024

2. Employees

2024 2023
Average number of employees during the period 3 2

Average number of employees does not include consultants/ contractors

FARID AG HOLDINGS LIMITED

Notes to the Financial Statements

for the Period Ended 29 February 2024

3. Intangible Assets

Total
Cost £
At 01 March 2023 289,627
Additions 0
Revaluations 123,021
At 29 February 2024 412,648
Amortisation
At 01 March 2023 0
At 29 February 2024 0
Net book value
At 29 February 2024 412,648
At 28 February 2023 289,627

FARID AG HOLDINGS LIMITED

Notes to the Financial Statements

for the Period Ended 29 February 2024

4. Tangible Assets

Total
Cost £
At 01 March 2023 6,100
Additions 250
At 29 February 2024 6,350
Depreciation
At 01 March 2023 0
At 29 February 2024 0
Net book value
At 29 February 2024 6,350
At 28 February 2023 6,100

FARID AG HOLDINGS LIMITED

Notes to the Financial Statements

for the Period Ended 29 February 2024

5. Creditors: amounts falling due within one year note

R&D Expenses Payable represent unpaid contributions toward R&D efforts, valued at £70,000. E-commerce Development Payable includes unpaid costs related to platform development, valued at £8,000. Partner Collaboration Payable reflects unpaid partner collaboration expenses, valued at £2,500.