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COMPANY REGISTRATION NUMBER: 06361491
My1Login Limited
Filleted Unaudited Financial Statements
30 June 2024
My1Login Limited
Directors' Report
Year Ended 30 June 2024
The directors present their report and the unaudited financial statements of the company for the year ended 30 June 2024 .
Principal Activities
The company's principal activity during the year was the development of Identity and Access Management software delivered to the company's customers on a software as a service basis.
Directors
The directors who served the company during the year were as follows:
K J Fraser
M Newman
W D G Cameron
Other Matters
Review of Business
We are delighted to report another year of significant revenue growth, largely driven by our focus on the UK accountancy sector where we are helping forward-thinking firms attract and retain clients by enabling them to differentiate on how they protect client data.
Our customer retention rate continues to excel as a result of the significant value our product delivers, and we have seen notable renewals across the board.
Continued focus on the enterprise market is delivering higher value contracts. Notwithstanding the particular areas of success above, our customer base now covers a wide breadth of business sectors, and we are confident this will continue to deliver cost effective growth. Opportunities already established with large organisations and an ever-increasing pool of qualified prospects has also enabled our revenues to build rapidly through the financial year and beyond.
Importantly, our business continues to grow in a growing market. Fortune Business Insights forecast the Identity as a Service (IDaaS) market size will grow at a CAGR of 25.3% through to 2029 and will be valued at over $24 billion by that time.
The picture that the analysts paint, and the advice we have from them, drives our continuing product development and we have invested heavily in this area to deliver a compelling set of products and services that has been recognised by analysts, Kuppinger Cole, in their annual Leadership Compass report.
The breadth of our product range is a key part of the sales message that is gaining significant traction with large enterprises, and recent developments such as the ability to automate One Time Passwords has been well received by customers.
From the outset, we pursued the process of securing the legal protection for our technology so as to enhance the value of the business. Currently we have patents granted in the US, Canada, Australia, New Zealand, UK and a number of other, strategically important EU countries.
Accelerating our growth in this expanding market has the potential to create substantial value for shareholders. We are delighted to see the benefits of their continued support being reflected in our very real progress.
Small Company Provisions
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
This report was approved by the board of directors on 30 January 2025 and signed on behalf of the board by:
M Newman
Director
Registered office:
3rd Floor 207 Regent Street
London
W1B 3HH
My1Login Limited
Statement of Financial Position
30 June 2024
2024
2023
Note
£
£
Fixed Assets
Intangible assets
5
473,520
440,479
Tangible assets
6
473
429
---------
---------
473,993
440,908
Current Assets
Debtors
7
156,148
128,577
Cash at bank and in hand
171,853
21,639
---------
---------
328,001
150,216
Creditors: amounts falling due within one year
8
334,443
492,043
---------
---------
Net Current Liabilities
6,442
341,827
---------
---------
Total Assets Less Current Liabilities
467,551
99,081
Creditors: amounts falling due after more than one year
9
389,619
455,675
---------
---------
Net Assets/(Liabilities)
77,932
( 356,594)
---------
---------
Capital and Reserves
Called up share capital
558,773
526,360
Share premium account
4,126,002
3,970,545
Other reserves
126,492
92,800
Profit and loss account
( 4,733,335)
( 4,946,299)
------------
------------
Shareholders Funds/(Deficit)
77,932
( 356,594)
------------
------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
For the year ending 30 June 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
My1Login Limited
Statement of Financial Position (continued)
30 June 2024
These financial statements were approved by the board of directors and authorised for issue on 30 January 2025 , and are signed on behalf of the board by:
M Newman
Director
My1Login Limited
Notes to the Financial Statements
Year Ended 30 June 2024
1. General Information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 3rd Floor 207 Regent Street, London, W1B 3HH.
2. Statement of Compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting Policies
Basis of Preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going Concern
The company has made a profit for the year of £212,964 (2023 - Loss of £358,956), and has net assets as at 30 June 2024 of £77,932 (2023 - net liabilities of £356,954). In making their going concern assessment, the Directors have considered the Company's expected future trading (noting the post balance sheet event) and expected investor support for the business, and therefore believe that the company can continue trading for a period of at least 12 months from the date of signing these financial statements, and therefore the financial statements have been prepared on a going concern basis.
Revenue Recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Corporation Tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Intangible Assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Development costs
-
three years
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Research and Development
Research expenditure is written off in the period in which it is incurred. Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met: - It is technically feasible to complete the intangible asset so that it will be available for use or sale; - There is the intention to complete the intangible asset and use or sell it; - There is the ability to use or sell the intangible asset; - The use or sale of the intangible asset will generate probable future economic benefits; - There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and - The expenditure attributable to the intangible asset during its development can be measured reliably. Expenditure that does not meet the above criteria is expensed as incurred.
Tangible Assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures and fittings
-
33% straight line
Equipment
-
33 % straight line
Share Based Payments
The fair value at the grant date of share based payment awards granted to employees is recognized as an expense, with a corresponding increase in equity, over the period in which the employees become unconditionally entitled to the awards. The fair value of the awards granted is measured using an option valuation model, taking into account the terms and conditions upon which the awards were granted. The amount recognised as an expense is adjusted to reflect the actual number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number of awards that do meet the related service and non- market conditions, the grant date fair value of the share-based payments is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.
Impairment of Fixed Assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Financial Instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined Contribution Plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Employee Numbers
The average number of persons employed by the company during the year amounted to 12 (2023: 12 ).
5. Intangible Assets
Development costs
£
Cost
At 1 July 2023
2,310,280
Additions
340,127
------------
At 30 June 2024
2,650,407
------------
Amortisation
At 1 July 2023
1,869,801
Charge for the year
307,086
------------
At 30 June 2024
2,176,887
------------
Carrying amount
At 30 June 2024
473,520
------------
At 30 June 2023
440,479
------------
6. Tangible Assets
Fixtures and fittings
Equipment
Total
£
£
£
Cost
At 1 July 2023
12,332
33,224
45,556
Additions
708
708
--------
--------
--------
At 30 June 2024
12,332
33,932
46,264
--------
--------
--------
Depreciation
At 1 July 2023
12,332
32,795
45,127
Charge for the year
664
664
--------
--------
--------
At 30 June 2024
12,332
33,459
45,791
--------
--------
--------
Carrying amount
At 30 June 2024
473
473
--------
--------
--------
At 30 June 2023
429
429
--------
--------
--------
7. Debtors
2024
2023
£
£
Trade debtors
41,466
33,793
Other debtors
114,682
94,784
---------
---------
156,148
128,577
---------
---------
8. Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
10,226
8,830
Trade creditors
38,121
37,341
Social security and other taxes
65,101
128,592
Other loans
24,119
41,102
Other creditors
196,876
276,178
---------
---------
334,443
492,043
---------
---------
9. Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
16,722
28,090
Other loans
372,897
427,585
---------
---------
389,619
455,675
---------
---------
Included within Other Creditors is £372,897 (2023 - £355,413) of convertible loan notes; these convertible loan notes are repayable on 5 May 2026 or, if earlier, an event of default (which includes an exit event) or can be converted into shares at any time at the request of a majority of not less than 75%of the notes in issue (which must include Scottish Enterprise). The noteholders have no rights to call for repayment prior to 5 May 2026, other than in the circumstances of an event of default. On conversion, the whole of the amount due to noteholders would immediately be applied in paying up new shares to be issued to them and no amount would be repaid in cash to noteholders.
10. Share Capital
Share options
Share options have been granted to 'Employees' and to 'Others' to subscribe for ordinary shares of My1login Limited. The number of shares granted in the current scheme for 'Employees' is (depending on future employment status) 71,946 ordinary £1 shares with exercise prices of £1.03, £1.20, £1.69 or £3.31. The 'Employee' options are exercisable in the event of the company achieving an exit event with Exit Proceeds not less than £2,774,424.
The number of shares granted for 'Others' is 6,920 ordinary shares with exercise prices of £9.375 and £11.54. Share options in respect of 'Others' apply to investors who have undertaken work for the company and were granted on 28 January 2013, 8 February 2013, 15 January 2015 and 3 June 2016. 3,200 of these options are exercisable at any time and do not have an expiry date; 3,720 of these options are exercisable in the event of the company achieving an exit event. The exercise prices are £9.375 and £11.54.
Warrants
Warrants have been granted to Equity Gap Limited and Tri Capital Limited by virtue of an instrument dated 22 October 2019. The warrants give Equity Gap Limited and Tri Capital Limited the option to subscribe for up to 0.5% of the fully diluted equity share capital of the Company, albeit Tri Capital Limited's warrant is subject to a maximum value equal to £25,000.