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REGISTERED NUMBER: 12096238 (England and Wales)
























FINANCIAL STATEMENTS

FOR THE PERIOD

28 DECEMBER 2022 TO 25 DECEMBER 2023

FOR

TAE POWER SOLUTIONS MANUFACTURING
LIMITED

TAE POWER SOLUTIONS MANUFACTURING
LIMITED (REGISTERED NUMBER: 12096238)

CONTENTS OF THE FINANCIAL STATEMENTS
For The Period 28 December 2022 to 25 December 2023










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


TAE POWER SOLUTIONS MANUFACTURING
LIMITED

COMPANY INFORMATION
For The Period 28 December 2022 to 25 December 2023







DIRECTOR: K Munipella





REGISTERED OFFICE: C/O Thrings Llp
6 Drakes Meadow
Swindon
SN3 3LL





REGISTERED NUMBER: 12096238 (England and Wales)





AUDITORS: TC Group
1 Rushmills
Bedford Road
Northampton
Northamptonshire
NN4 7YB

TAE POWER SOLUTIONS MANUFACTURING
LIMITED (REGISTERED NUMBER: 12096238)

BALANCE SHEET
25 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 111,021 60,630

CURRENT ASSETS
Stocks 1,266,872 1,270,965
Debtors 5 382,743 549,779
Cash at bank 111,028 54,278
1,760,643 1,875,022
CREDITORS
Amounts falling due within one year 6 1,672,428 1,647,964
NET CURRENT ASSETS 88,215 227,058
TOTAL ASSETS LESS CURRENT LIABILITIES 199,236 287,688

CREDITORS
Amounts falling due after more than one
year

7

(14,806

)

(24,045

)

PROVISIONS FOR LIABILITIES 10 (21,902 ) -
NET ASSETS 162,528 263,643

CAPITAL AND RESERVES
Called up share capital 11 106 106
Share option reserve 75,384 -
Retained earnings 87,038 263,537
SHAREHOLDERS' FUNDS 162,528 263,643

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 director and authorised for issue on 17 April 2025 and were signed by:





K Munipella - Director


TAE POWER SOLUTIONS MANUFACTURING
LIMITED (REGISTERED NUMBER: 12096238)

NOTES TO THE FINANCIAL STATEMENTS
For The Period 28 December 2022 to 25 December 2023


1. STATUTORY INFORMATION

TAE Power Solutions Manufacturing Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The current trading address of TAE Power Solutions Manufacturing is Duncote, Towcester, NN12 8AL

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.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 10% on cost
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 25% on reducing balance
Computer equipment - 33% on cost

Stocks
Stocks are valued at the estimate selling price, less costs to complete and sell after making due allowance for obsolete and slow moving stock.

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.

TAE POWER SOLUTIONS MANUFACTURING
LIMITED (REGISTERED NUMBER: 12096238)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Period 28 December 2022 to 25 December 2023


2. ACCOUNTING POLICIES - continued

Foreign currencies
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 of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

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
On 30 June 2024 the trade and assets of the business were acquired by a customer of the group under an Asset Purchase Agreement. Subsequent to this, the company has completed its remaining other projects and ceased to trade, with the intention to become dormant once all residual balances have been settled.

For the period ended 25 December 2023 the company reported an operating loss of £1,368,804. The company is financed by its parent company, and is dependent upon the continued support of the ultimate parent company and its investors. With this support, at the time of approving the financial statements, the directors have reasonable expectation that the company has adequate resources and funding in place to continue in operational existence for the foreseeable future and pay its liabilities as they fall due.

As at the point of authorising the accounts, and for the foreseeable future, the directors consider the going concern assumption to still be appropriate. However, should continuing funding not be available, the going concern basis would be invalid and the adjustments would have to be made to reduce the value of assets to their realisable amount and to provide for any further liabilities that might arise.

The directors acknowledge that given the currently rapidly changing business and social environment, there are likely to be significant unknown factors which may present themselves. Such factors are considered by the directors to represent a general inherent level of risk in relation to the going concern assumption albeit not quantifiable at this time.

Thus the directors continue to adopt the going concern basis of accounting in preparing the financial
statements.

TAE POWER SOLUTIONS MANUFACTURING
LIMITED (REGISTERED NUMBER: 12096238)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Period 28 December 2022 to 25 December 2023


2. ACCOUNTING POLICIES - continued

Share based payments
The Group provides share-based payment arrangements to certain employees.
Equity-settled arrangements are measured at fair value (excluding the effect on non-market based vesting conditions) at the date of the grant. The fair value is expensed on a straight-line basis over the vesting period. The amount recognised as an expense is adjusted to reflect the actual number of shares or options that will vest.

Where equity-settled arrangements are modified, and are of benefit to the employee, the incremental fair value is recognised over the period from the date of modification to date of vesting. Where a modification is not beneficial to the employee there is no change to the charge for share-based payment. Settlements and cancellations are treated as an acceleration of vesting and the unvested amount is recognised immediately in the income statement.

Cash-settled share options are measured at fair value at the balance sheet date. The Group recognises a liability at the balance sheet date based on these fair values, taking into account the estimated number of options that will actually vest and the current proportion of the vesting period. Changes in the value of this liability are recognised in the income statement.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the period was 35 (2022 - 32 ) .

4. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and Computer
property machinery fittings equipment Totals
£    £    £    £    £   
COST
At 28 December 2022 22,897 38,256 24,929 5,567 91,649
Additions - 59,146 16,967 - 76,113
At 25 December 2023 22,897 97,402 41,896 5,567 167,762
DEPRECIATION
At 28 December 2022 4,579 12,819 10,349 3,272 31,019
Charge for period 2,290 14,149 7,446 1,837 25,722
At 25 December 2023 6,869 26,968 17,795 5,109 56,741
NET BOOK VALUE
At 25 December 2023 16,028 70,434 24,101 458 111,021
At 27 December 2022 18,318 25,437 14,580 2,295 60,630

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 255,304 392,419
Other debtors 25,053 39,131
Tax 99,699 19,595
VAT 2,687 9,021
Prepayments - 89,613
382,743 549,779

TAE POWER SOLUTIONS MANUFACTURING
LIMITED (REGISTERED NUMBER: 12096238)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Period 28 December 2022 to 25 December 2023


6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 8) 10,140 11,203
Trade creditors 217,102 332,686
Amounts owed to group undertakings 1,328,722 1,135,623
Social security and other taxes 23,897 114,378
Other creditors - 23,211
Pensions Payable 6,359 -
Accrued expenses 86,208 30,863
1,672,428 1,647,964

7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 8) 14,806 24,045

8. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 10,140 11,203

Amounts falling due between one and two years:
Bank loans - 1-2 years 10,397 9,239

Amounts falling due between two and five years:
Bank loans - 2-5 years 4,409 14,806

The loan within creditors is a bounceback loan, which incurs a fixed level of interest and is guaranteed by the UK government.

9. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 91,426 90,706
Between one and five years 281,362 302,068
In more than five years 127,918 197,918
500,706 590,692

Subsequent to the year end the operating leases have been novated to a customer of the group as part of the Asset Purchase Agreement on 14 June 2024.

TAE POWER SOLUTIONS MANUFACTURING
LIMITED (REGISTERED NUMBER: 12096238)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Period 28 December 2022 to 25 December 2023


10. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 21,902 -

Deferred
tax
£   
Charge to Income Statement during period 21,902
Balance at 25 December 2023 21,902

11. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100 Ordinary £1 100 100
2 Ordinary A £1 2 2
2 Ordinary B £1 2 2
2 Ordinary C £1 2 2
106 106

12. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Emma Jones FCCA (Senior Statutory Auditor)
for and on behalf of TC Group

Material uncertainty related to going concern

We draw attention to Note 2 in the financial statements, which indicates that for the period ended 25 December 2023, the company reported an operating loss of £1,368,804. As stated in Note 2, these events or conditions, along with other matters, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern.

Our opinion is not modified in respect of this matter.

13. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

14. POST BALANCE SHEET EVENTS

On 30 June 2024 the trade and assets of the business were acquired by a customer of the group under an Asset Purchase Agreement.

Subsequent to the year end, 74,576 share options have been forfeited. Amounts totalling £63,170 have been released from the share option reserve in 2024 and 2025 to date in relation to these.

TAE POWER SOLUTIONS MANUFACTURING
LIMITED (REGISTERED NUMBER: 12096238)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Period 28 December 2022 to 25 December 2023


15. ULTIMATE CONTROLLING PARTY

The immediate parent company is TAE Power Solutions Limited.

TAE Technologies Inc is the ultimate controlling party by virtue of their shareholding in the group.

16. SHARE-BASED PAYMENT TRANSACTIONS

The number of equity-settled share based payments has been disclosed in the below table. During the year, the charge for the equity-settled share based payment was £75,384.

Some employees of the company have been issued share options in TAE Power Solutions LLC and TAE Technologies Inc. Share options which have been granted have non-market vesting conditions attached, and there are two different classes. Share options are exercisable immediately after the vesting period between 1-6 years following their grant.

The fair value of share options granted is estimated at the date of grant. The grant date for accounting purposes is at various points as the options were issued, as this is when a shared understanding of the terms and conditions of the arrangements was achieved between various parties. When assessing the fair value at the grant date, market information was used from which the parent company is listed in.

The fair value of share options granted is estimated at the date of grant using Black Scholes model.

The following table illustrates the number and weighted average exercise price of, and movements in, share options during the year;






Number of
share options
Weighted
average
exercise
price
At 1 January 2022-
Issued 108,736$14,64
Forfeited(8,231)$14.64
At 25 December 2023100,505$14.64

The options outstanding at 25 December 2023 had an exercise price ranging from £22.39 to £1.03 and a remaining contractual life of 5.66 years on average. Note the above exercise prices are in a base currency of US Dollars and have been converted at the exchange rate at the year end date.

During the year ended 25 December 2023, 108,736 share options were issued with a weighted average aggregate value of £347,262 at the date of grant to employees.

The fair value of the share options granted during the year were determined using the Black-Scholes option pricing model with the following weighted average assumptions:

Average ($)Average (£)
Share price20.3716.29
Exercise price14.6411.71
Expected volatility70.82%
Expected option life5.66 years
Risk-free interest rate2.93%

Subsequent to the year end, 74,576 share options have been forfeited. Amounts totalling £63,170 have been released from the share option reserve in 2024 and 2025 to date in relation to these.