Acorah Software Products - Accounts Production 16.1.300 false true true 31 December 2023 1 September 2023 false 1 January 2024 31 December 2024 31 December 2024 10317962 Mr S G Brett Dr S D Garvey Mr G K Butschek Mr D Atkinson Mr P J Harris Dr M Simpson Mr P J Chamley iso4217:GBP iso4217:EUR iso4217:USD xbrli:shares xbrli:pure xbrli:pure 10317962 2023-12-31 10317962 2024-12-31 10317962 2024-01-01 2024-12-31 10317962 frs-core:CurrentFinancialInstruments 2024-12-31 10317962 frs-core:Non-currentFinancialInstruments 2024-12-31 10317962 frs-core:ComputerEquipment 2024-12-31 10317962 frs-core:ComputerEquipment 2024-01-01 2024-12-31 10317962 frs-core:ComputerEquipment 2023-12-31 10317962 frs-core:PlantMachinery 2024-12-31 10317962 frs-core:PlantMachinery 2024-01-01 2024-12-31 10317962 frs-core:PlantMachinery 2023-12-31 10317962 frs-core:OtherReservesSubtotal 2024-12-31 10317962 frs-core:SharePremium 2024-12-31 10317962 frs-core:ShareCapital 2024-12-31 10317962 frs-core:RetainedEarningsAccumulatedLosses 2024-12-31 10317962 frs-bus:PrivateLimitedCompanyLtd 2024-01-01 2024-12-31 10317962 frs-bus:FilletedAccounts 2024-01-01 2024-12-31 10317962 frs-bus:SmallEntities 2024-01-01 2024-12-31 10317962 frs-bus:AuditExempt-NoAccountantsReport 2024-01-01 2024-12-31 10317962 frs-bus:SmallCompaniesRegimeForAccounts 2024-01-01 2024-12-31 10317962 frs-bus:Director1 2024-01-01 2024-12-31 10317962 frs-bus:Director2 2024-01-01 2024-12-31 10317962 frs-bus:Director3 2024-01-01 2024-12-31 10317962 frs-bus:Director4 2024-01-01 2024-12-31 10317962 frs-bus:Director5 2024-01-01 2024-12-31 10317962 frs-bus:Director6 2024-01-01 2024-12-31 10317962 frs-bus:Director7 2024-01-01 2024-12-31 10317962 frs-core:CurrentFinancialInstruments 1 2024-12-31 10317962 frs-core:CurrentFinancialInstruments 2 2024-12-31 10317962 frs-countries:EnglandWales 2024-01-01 2024-12-31 10317962 2023-08-31 10317962 2023-12-31 10317962 2023-09-01 2023-12-31 10317962 frs-core:CurrentFinancialInstruments 2023-12-31 10317962 frs-core:Non-currentFinancialInstruments 2023-12-31 10317962 frs-core:OtherReservesSubtotal 2023-12-31 10317962 frs-core:SharePremium 2023-12-31 10317962 frs-core:ShareCapital 2023-12-31 10317962 frs-core:RetainedEarningsAccumulatedLosses 2023-12-31 10317962 frs-core:CurrentFinancialInstruments 1 2023-12-31 10317962 frs-core:CurrentFinancialInstruments 2 2023-12-31
Registered number: 10317962
Cheesecake Energy Limited
Unaudited Financial Statements
For The Year Ended 31 December 2024
Contents
Page
Balance Sheet 1—2
Notes to the Financial Statements 3—7
Page 1
Balance Sheet
Registered number: 10317962
31 December 2024 31 December 2023
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 4 14,919 15,851
14,919 15,851
CURRENT ASSETS
Debtors 5 815,521 317,917
Cash at bank and in hand 1,153,589 921,139
1,969,110 1,239,056
Creditors: Amounts Falling Due Within One Year 6 (2,489,746 ) (462,799 )
NET CURRENT ASSETS (LIABILITIES) (520,636 ) 776,257
TOTAL ASSETS LESS CURRENT LIABILITIES (505,717 ) 792,108
Creditors: Amounts Falling Due After More Than One Year 7 (4,934 ) (12,334 )
NET (LIABILITIES)/ASSETS (510,651 ) 779,774
CAPITAL AND RESERVES
Called up share capital 8 1,719 1,719
Share premium account 5,369,390 5,369,390
Other reserves 326,452 -
Profit and Loss Account (6,208,212 ) (4,591,335 )
SHAREHOLDERS' FUNDS (510,651) 779,774
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For the year ending 31 December 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 P J Harris
Director
13/02/2025
The notes on pages 3 to 6 form part of these financial statements.
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Notes to the Financial Statements
1. General Information
Cheesecake Energy Limited is a private company, limited by shares, incorporated in England & Wales, registered number 10317962 . The registered office is The Ingenuity Centre, Triumph Road, Nottingham, NG7 2TU. 
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 Company has changed its accounting reference date from 31 August 2024 to 31 December 2023 in the prior period. As a result, the current financial statements cover the 12-month period from 1 January 2024 to 31 December 2024, whereas the comparative period represents a shorter 4-month period from 1 September 2023 to 31 December 2023.
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.
2.3. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
2.4. 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
Computer Equipment straight line over 3 years
2.5. Leasing and Hire Purchase Contracts
Operating lease rentals are charged to the Company profit and loss account on a straight-line basis over the lease term, except where the directors consider that another systematic basis would be more representative of the time pattern in which the economic benefits associated with the leased asset are consumed. Contingent rentals which arise under operating lease agreements are recognised as an expense in the period in which they are incurred. Lease incentives are recognised on a straight-line basis over the lease term.
2.6. Financial Instruments
The Company has chosen to adopt FRS 102, Section 11 Basic Financial Instruments and 12 Other Financial Instruments Issues of FRS 102 in respect of financial instruments.
All financial assets and liabilities are initially measured at transaction price, including transaction costs, except for those financial assets classified at fair value through profit or loss, which are initially measured at fair value (at transaction price excluding transaction costs) unless the arrangement constitutes a financing transaction.
Financial assets and financial liabilities are only offset in the Company balance sheet when, and only when, there is a legally enforceable right to set off the recognised amounts and the Company intends to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Debt instruments (other than those repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at the present value of the future cash flows and subsequently amortised using the effective interest method.
Creditors
Short-term creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are subsequently measured at amortised cost using the effective interest method.
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2.6. Financial Instruments - continued
Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are subsequently measured at amortised cost using the effective interest method, less any impairment.
Cash and cash equivalents
Cash is represented by cash on hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments which mature in no more than three months from the date of acquisition and which are readily convertible into known amounts of cash with insignificant risk of change in value. 
Convertible debt
On issuing convertible debt that contain both a liability and an equity component, the Company allocates the proceeds between the liability component and the equity component. To make the allocation, the Company first determines the amount of the liability component as the fair value of a similar liability that does not have a conversion feature or similar associated equity component. 
The Company allocates the residual amount as the equity component. Transaction costs are allocated between the debt component and the equity component on the basis of their relative fair values. The Company does not revise the allocation in a subsequent period. In periods after the instruments were issued, the Company accounts for the liability component as a financial instrument in accordance with Section 11 Basic Financial Instruments or Section 12 Other Financial Instruments Issues as appropriate. 
Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated financial instrument.
2.7. 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 operating profit.
2.8. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the period. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the period is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
2.9. 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.
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2.10. 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.
2.11. Research and development costs
The Company is developing low carbon energy storage technology. Expenditure on research is recognised as an expense in the period in which it is incurred. 
3. Average Number of Employees
Average number of employees, including directors, during the year was: 27 (2023: 22)
27 22
4. Tangible Assets
Plant & Machinery Computer Equipment Total
£ £ £
Cost
As at 1 January 2024 3,315 25,149 28,464
Additions 2,732 6,188 8,920
As at 31 December 2024 6,047 31,337 37,384
Depreciation
As at 1 January 2024 1,043 11,570 12,613
Provided during the period 1,259 8,593 9,852
As at 31 December 2024 2,302 20,163 22,465
Net Book Value
As at 31 December 2024 3,745 11,174 14,919
As at 1 January 2024 2,272 13,579 15,851
5. Debtors
31 December 2024 31 December 2023
£ £
Due within one year
Trade debtors - 52,000
Prepayments and accrued income 54,206 25,981
Other debtors - 1,008
VAT debtor - 70,658
Grants receivable 761,315 168,270
815,521 317,917
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6. Creditors: Amounts Falling Due Within One Year
31 December 2024 31 December 2023
£ £
Trade creditors 240,852 404,651
Bank loans and overdrafts 7,400 7,400
Other taxes and social security 45,049 33,741
VAT 13,547 -
Other creditors 20,377 13,607
Convertible loan notes 2,143,380 -
Accruals and deferred income 19,141 3,400
2,489,746 462,799
Included within creditors are convertible loan notes of £2,143,380 (2023: Nil) which at the balance sheet date had a conversion date within 12 months. During the year, the Company issued 10% unsecured convertible loan notes totalling £2,260,000 which are convertible to ordinary shares in the Company at the earlier of a successful fund raising event or at the end of the term of the loan notes. The conversion price depends on whether they were converted following a successful fund raising event or at the end of the term of the loan notes.
The purpose of convertible loan notes is to primarily fund the Company's research and development acrtivities. When the loan notes were issued, the liability component was valued first, and the difference between the total proceeds on issue (which is the fair value of the instrument in its entirety) and the fair value of the liability component was assigned to the equity component. The fair value of the liability component is calculated by determining its present value using a discount rate of 16 per cent. The loan notes are then amortised through the term of the loan notes.
The majority of noteholders confirmed that it is not their intention to call for the repayment of any amounts which are due and owing in respect of the loan notes within the 12 month period following the approval of these financial statements unless the Company has sufficient resources available to it to make such repayment.
7. Creditors: Amounts Falling Due After More Than One Year
31 December 2024 31 December 2023
£ £
Bank loans 4,934 12,334
8. Share Capital
31 December 2024 31 December 2023
£ £
Allotted, Called up and fully paid 1,719 1,719
The Company currently has the following number of shares in issue, each with a nominal value of £0.001 (2023: £0.001):
  • 1,104,427 Ordinary Shares (2023: 1,152,427)
  • 496,206 Class A Shares (2023: 496,206)
  • 117,000 Deferred Shares (2023: 69,000)
Employee Share Option Scheme
The Company operates a Share Incentive scheme for the purpose of retaining key employees and stakeholders. Key employees are granted options over Ordinary Shares, exercisable if employment is maintained with the Company. During the year, 31,266 (2023: 36,216) options were granted over Ordinary Shares. All of the shares issued this year and in the prior period have an exercise price of £6.59 per share. During the period 15,484 options lapsed (2023: 4,514).
Of the 232,558 outstanding options:
• 27,950 had vested in the year to 31st August 2022
• 9,075 had vested in the year to 31st August 2023
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8. Share Capital - continued
• 3,125 had vested in the period to 31st December 2023
• 12,475 had vested in the year to 31st December 2024
• 179,933 will vest in the 3 years to 31st December 2027 
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