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Registered number: 12028625
Charco Neurotech Ltd
Unaudited Financial Statements
For The Year Ended 29 February 2024
Max Accountants Ltd
Ketton Suite
The King Centre
Oakham
Rutland
LE15 7WD
Contents
Page
Balance Sheet 1—2
Notes to the Financial Statements 3—7
Page 1
Balance Sheet
Registered number: 12028625
2024 2023
Notes £ £ £ £
FIXED ASSETS
Intangible Assets 4 58,039 45,833
Tangible Assets 5 93,723 108,134
Investments 6 62,327 62,319
214,089 216,286
CURRENT ASSETS
Stocks 7 159,177 418,571
Debtors 8 575,566 528,952
Cash at bank and in hand 4,502,235 2,738,809
5,236,978 3,686,332
Creditors: Amounts Falling Due Within One Year 9 (465,606 ) (178,367 )
NET CURRENT ASSETS (LIABILITIES) 4,771,372 3,507,965
TOTAL ASSETS LESS CURRENT LIABILITIES 4,985,461 3,724,251
NET ASSETS 4,985,461 3,724,251
CAPITAL AND RESERVES
Called up share capital 10 73 42
Share premium account 11,513,154 7,193,281
Fair Value Reserve 2,748,970 2,681,524
Profit and Loss Account (9,276,736 ) (6,150,596 )
SHAREHOLDERS' FUNDS 4,985,461 3,724,251
Page 1
Page 2
For the year ending 29 February 2024 the company was entitled to exemption from audit 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.
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The company has taken advantage of section 444(1) of the Companies Act 2006 and opted not to deliver to the registrar a copy of the company's Profit and Loss Account.
On behalf of the board
Mr Charles Edward Alvarez
Director
28 November 2024
The notes on pages 3 to 7 form part of these financial statements.
Page 2
Page 3
Notes to the Financial Statements
1. General Information
Charco Neurotech Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 12028625 . The registered office is Wellington House, East Road, Cambridge, CB1 1BH.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
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 £.
2.2. Going Concern Disclosure
The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern. Therefore the financial statements have been prepared on a going concern basis which assumes the Company will continue in operational existence for the foreseeable future. 
The Company is involved in research and development activities and is working towards achieving a sustainable revenue generating activity. The directors have considered the basis of the financial statements and are satisfied that a combination of business growth and further investment commitments will enable the Company to meet its liabilities as they fall due.
2.3. Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
2.4. Intangible Fixed Assets and Amortisation - Other Intangible
Other intangible assets are made up of Licences and Patents. They are amortised to profit and loss account over their estimated economic life of 2 years and 7 years.
2.5. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Plant & Machinery Straight line over 5 years
Fixtures & Fittings Straight line over 4 years
Computer Equipment Straight line over 3 years
2.6. Investments
Unlisted investments are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, any changes in fair value are recognised in profit and loss.
2.7. Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
2.8. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
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2.9. 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 in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include debtors and bank balances, are measured at transaction price including transaction costs.
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 creditors, are recognised at transaction price including transaction costs.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities.
2.10. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the profit / loss before taxation.
2.11. Taxation
Tax is recognised in profit or loss except that a charge is attributable to an item of income and expense recognised as other comphrehensive income or to an item recognised directly in equity is also recognised in other comphrehensive 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 balance sheet date in the countries where the company operates and generates income.
2.12. Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
2.13. Government Grant
Government grants are recognised in the profit and loss account in an appropriate manner that matches them with the expenditure towards which they are intended to contribute.
Grants for immediate financial support or to cover costs already incurred are recognised immediately in the profit and loss account. Grants towards general activities of the entity over a specific period are recognised in the profit and loss account over that period.
Grants towards fixed assets are recognised over the expected useful lives of the related assets and are treated as deferred income and released to the profit and loss account over the useful life of the asset concerned.
All grants in the profit and loss account are recognised when all conditions for receipt have been complied with.
2.14. Research and Development
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research is recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised to on a straight line basis over their expected useful economic lives.
If it is not possible to distinguish between the research phase and the development phase of an internal project the expenditure is treated as if it were all incurred in the research phase only.
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Page 5
2.15. Share Based Payments
The company operates an equity-settled, share-based compensation plan, under which the entity received services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. 
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised. 
3. Average Number of Employees
Average number of employees, including directors, during the year was: 22 (2023: 23)
22 23
4. Intangible Assets
Other
£
Cost
As at 1 March 2023 50,000
Additions 39,050
As at 29 February 2024 89,050
Amortisation
As at 1 March 2023 4,167
Provided during the period 26,844
As at 29 February 2024 31,011
Net Book Value
As at 29 February 2024 58,039
As at 1 March 2023 45,833
5. Tangible Assets
Plant & Machinery Fixtures & Fittings Computer Equipment Total
£ £ £ £
Cost
As at 1 March 2023 86,563 18,222 25,363 130,148
Additions 5,811 - 16,562 22,373
As at 29 February 2024 92,374 18,222 41,925 152,521
Depreciation
As at 1 March 2023 14,851 250 6,913 22,014
Provided during the period 18,845 4,555 13,384 36,784
As at 29 February 2024 33,696 4,805 20,297 58,798
Net Book Value
As at 29 February 2024 58,678 13,417 21,628 93,723
As at 1 March 2023 71,712 17,972 18,450 108,134
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6. Investments
Unlisted
£
Cost
As at 1 March 2023 62,319
Additions 8
As at 29 February 2024 62,327
Provision
As at 1 March 2023 -
As at 29 February 2024 -
Net Book Value
As at 29 February 2024 62,327
As at 1 March 2023 62,319
Subsidiaries
Details of the company's subsidiaries as at 29 February 2024 are as follows:
Name of undertaking Registered Office Class of shares held Direct holding Indirect holding
Charconeurotech Inc. South Korea Common Stock 100.00% -
Charconeurotech LLC USA Common Stock 100.00% -
7. Stocks
2024 2023
£ £
Stock 159,177 418,571
8. Debtors
2024 2023
£ £
Due within one year
Trade debtors - 2,900
Prepayments and accrued income 197,446 165,539
Other debtors 83,265 26,871
Corporation tax recoverable assets 245,989 257,991
VAT 48,098 75,555
Directors' loan accounts 96 96
Amounts owed by subsidiaries 672 -
575,566 528,952
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9. Creditors: Amounts Falling Due Within One Year
2024 2023
£ £
Trade creditors 414,481 104,108
Other taxes and social security 16,228 25,825
Other creditors 2,472 3,906
Accruals and deferred income 32,425 44,528
465,606 178,367
10. Share Capital
2024 2023
Allotted, called up and fully paid £ £
2,105,235 Ordinary Shares of £ 0.00001 each 21 23
5,007,339 Seed shares of £ 0.00001 each 50 19
236,110 Deferred shares of £ 0.00001 each 2 -
73 42
On 31st August 2023, 2,880 Ordinary shares of £0.00001 each were allotted and fully paid at a price of £0.00001 per share.
On 4th October 2023, 11,111 Ordinary shares of £0.00001 each were allotted and fully paid at a price of £0.0004 per share.
On 6th February 2024, 114,277 Seed shares of £0.00001 each were allotted and fully paid at a price of £1.40 per share.
On 9th February 2024, 236,110 Ordinary shares of £0.00001 each were reclassified as Deferred shares of the same value.
On 18th February 2024, 11,111 Ordinary shares of £0.00001 each were allotted and fully paid at a price of £0.0004 per share as well as 27,044 Ordinary shares of £0.00001 each at a price of £0.00001 per share.
On 22nd February 2024, 2,999,998 Seed shares of £0.00001 each were allotted and fully paid at a price of £1.40 per share.
11. Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
2024 2023
£ £
Not later than one year 137,836 121,671
Later than one year and not later than five years 11,651 21,326
149,487 142,997
12. Related Party Disclosures
The company has taken advantage of exemption, under 33.1A of the Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", not to disclose transactions with wholly owned subsidiaries within the group.
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