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REGISTERED NUMBER: SC552214 (Scotland)















Unaudited Financial Statements for the Year Ended 31 December 2023

for

Sphere Research Ltd

Sphere Research Ltd (Registered number: SC552214)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4


Sphere Research Ltd

Company Information
for the Year Ended 31 December 2023







DIRECTORS: O Treadway
D B Cazalet
K Miller
A L Bolivar Rojas
DA Secretarial Limited





SECRETARY: DA Secretarial Limited





REGISTERED OFFICE: C/o Factotum
63 Dublin Street
Edinburgh
EH3 6NS





REGISTERED NUMBER: SC552214 (Scotland)





ACCOUNTANTS: Dragon Argent Limited
63 Bermondsey Street
London
SE1 3XF

Sphere Research Ltd (Registered number: SC552214)

Balance Sheet
31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 3,631,349 4,252,007
Tangible assets 5 7,411 16,773
3,638,760 4,268,780

CURRENT ASSETS
Debtors 6 234,137 779,453
Cash at bank 283,331 130,860
517,468 910,313
CREDITORS
Amounts falling due within one year 7 3,144,098 2,633,367
NET CURRENT LIABILITIES (2,626,630 ) (1,723,054 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,012,130

2,545,726

CAPITAL AND RESERVES
Called up share capital 22 21
Share premium 6,443,028 6,093,889
Retained earnings (5,430,920 ) (3,548,184 )
1,012,130 2,545,726

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

Sphere Research Ltd (Registered number: SC552214)

Balance Sheet - continued
31 December 2023


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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 16 October 2024 and were signed on its behalf by:





O Treadway - Director


Sphere Research Ltd (Registered number: SC552214)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Sphere Research Ltd is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of five years.

Platform development
Intangible assets in relation to the development of the Sphere platform are originally measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs have been capitalised where they meet the recognition criteria, being that the project is technically feasible, the intention is to sell or use the intangible asset, the asset is expected to generate future economic benefits and the costs of the development can be reliably measured.

At each reporting period end date, the company reviews the carrying amounts of its intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in the income statement, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery etc - Straight line over 3 years

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable or receivable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Sphere Research Ltd (Registered number: SC552214)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern
At 31 December 2023, the company had net current liabilities of £2,626,630 (2022: £1,723,054), primarily incurred due to spend on continuing development of the Sphere platform to bring to market, which is expected to generate profits in future periods. The company incurred losses for the financial year of £1,882,736 (2022:£1,602,330).

To date the company has been primarily supported by equity investment of over £7m of which over £950K was raised during the financial year to 31 December 2023. The company is also supported by a number of informal loans from directors and shareholders as more particularly detailed in the related party disclosures note. These loans will be repaid only when the company has sufficient capital to do so in order to not jeopardise the going concern status of the company. This is expected to be following the conclusion of a further equity raise within six months of the approval of these financial statements.

Based on the continued strong investment interest in the company, and historic track record of the ability to raise, the directors have a reasonable expectation that the company will have sufficient resources available to it to enable it to continue its operations and meet its liabilities as they fall due for a period of at least one year from the approval of these financial statements. Accordingly, the company continues to adopt the going concern basis of accounting in preparing the financial statements.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 4 (2022 - 5 ) .

4. INTANGIBLE FIXED ASSETS
Other
intangible
assets
£   
COST
At 1 January 2023 6,331,386
Additions 697,101
At 31 December 2023 7,028,487
AMORTISATION
At 1 January 2023 2,079,379
Charge for year 1,317,759
At 31 December 2023 3,397,138
NET BOOK VALUE
At 31 December 2023 3,631,349
At 31 December 2022 4,252,007

Sphere Research Ltd (Registered number: SC552214)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

5. TANGIBLE FIXED ASSETS
Plant and
machinery
etc
£   
COST
At 1 January 2023 40,460
Additions 598
At 31 December 2023 41,058
DEPRECIATION
At 1 January 2023 23,687
Charge for year 9,960
At 31 December 2023 33,647
NET BOOK VALUE
At 31 December 2023 7,411
At 31 December 2022 16,773

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 298 67,260
Other debtors 233,839 712,193
234,137 779,453

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade creditors 814,938 1,221,603
Taxation and social security 15,127 133,261
Other creditors 2,314,033 1,278,503
3,144,098 2,633,367

8. RELATED PARTY DISCLOSURES

At balance sheet date, the company has outstanding balances with various directors and shareholders as follows. All of these loans are informal with no interest applied and no fixed repayment date.

Included in other debtors due within one year is an amount of £2,928 (2022:£8,927) owed to the company by a director.

Included in other creditors due within one year is an amount of £918,853 (2022: £1,078,353) owed by the company to directors, and a further £51,242 (2022: £140,625) owed to shareholders who are not officeholders of the company.