REGISTERED NUMBER: |
Unaudited Financial Statements |
for the Period 3 August 2023 to 31 August 2024 |
for |
PALABRA.AI LTD |
REGISTERED NUMBER: |
Unaudited Financial Statements |
for the Period 3 August 2023 to 31 August 2024 |
for |
PALABRA.AI LTD |
PALABRA.AI LTD (Registered number: 15047379) |
Contents of the Financial Statements |
for the Period 3 August 2023 to 31 August 2024 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
Report of the Accountant | 6 |
PALABRA.AI LTD |
Company Information |
for the Period 3 August 2023 to 31 August 2024 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANT: |
Office 22, The Joiners Shop |
The Historic Dockyard |
Chatham |
Kent |
ME4 4TZ |
PALABRA.AI LTD (Registered number: 15047379) |
Balance Sheet |
31 August 2024 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
CURRENT ASSETS |
Debtors | 5 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 6 |
NET CURRENT LIABILITIES | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
CAPITAL AND RESERVES |
Called up share capital |
Retained earnings | ( |
) |
( |
) |
The director acknowledges his 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. |
The financial statements were approved by the director and authorised for issue on |
PALABRA.AI LTD (Registered number: 15047379) |
Notes to the Financial Statements |
for the Period 3 August 2023 to 31 August 2024 |
1. | STATUTORY INFORMATION |
PALABRA.AI LTD is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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. |
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 statement of financial position 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 trade and other receivables 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 transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
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 payables, and loans from fellow group companies that are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade payables 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 if payment is due within one year or less. If not, they are presented as non-current liabilities. |
PALABRA.AI LTD (Registered number: 15047379) |
Notes to the Financial Statements - continued |
for the Period 3 August 2023 to 31 August 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the period 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 using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the period was |
4. | INTANGIBLE FIXED ASSETS |
Other |
intangible |
assets |
£ |
COST |
Additions |
At 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
£ |
Other debtors |
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
£ |
Trade creditors |
Taxation and social security |
Other creditors |
PALABRA.AI LTD (Registered number: 15047379) |
Notes to the Financial Statements - continued |
for the Period 3 August 2023 to 31 August 2024 |
7. | RELATED PARTY DISCLOSURES |
Artem Kukharenko is the director and 100% shareholder of the company. |
8. | SHARE-BASED PAYMENTS - STOCK OPTION PLAN |
The company operates a stock option plan to incentivize key personnel. Under this plan, participants are granted options to purchase common shares at an exercise price that is determined at the time of the grant. The options vest over a specified period and have a defined expiration period from the grant date. |
During the year, the company granted options, and as of the balance sheet date, there are outstanding options, some of which are vested and exercisable. The fair value of the options granted is calculated using an appropriate valuation model, and the total share-based payment expense for the year has been recognized in the income statement. |
If all outstanding options are exercised, this could result in dilution of the total outstanding shares. |
This note provides a transparent view of the stock option plan’s financial implications and potential equity impact on the company and its shareholders. |
9. | CONVERTIBLE INSTRUMENTS - SIMPLE AGREEMENT FOR FUTURE EQUITY (SAFES) |
The company has issued SAFEs to raise capital as part of ongoing financing rounds. SAFEs are financial instruments that provide holders with the right to future equity in the company, typically upon certain financing events. |
These SAFEs are structured as post-money agreements, meaning the conversion will consider the company’s valuation after financing. Currently, specific terms such as the valuation cap and the potential number of shares to be issued upon conversion are still being determined. |
As of the balance sheet date, the SAFEs are recorded as liabilities. If converted into equity, this could dilute the ownership of existing shareholders, although the exact impact remains uncertain. |
PALABRA.AI LTD |
Report of the Accountant to the Director of |
PALABRA.AI LTD |
The following reproduces the text of the report prepared for the director in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Director are not required to be filed with the Registrar of Companies. |
As described on the Balance Sheet you are responsible for the preparation of the financial statements for the period ended 31 August 2024 set out on pages two to five and you consider that the company is exempt from an audit. |
In accordance with your instructions, I have compiled these unaudited financial statements in order to assist you to fulfil your statutory responsibilities, from the accounting records and information and explanations supplied to me. |
Office 22, The Joiners Shop |
The Historic Dockyard |
Chatham |
Kent |
ME4 4TZ |