Company registration number 04497290 (England and Wales)
IOSBIO LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
PAGES FOR FILING WITH REGISTRAR
IOSBIO LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
IOSBIO LTD
BALANCE SHEET
AS AT 31 JULY 2024
31 July 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
3
5,035,334
5,000,890
Tangible assets
4
347,064
493,890
5,382,398
5,494,780
Current assets
Debtors
5
645,972
491,139
Cash at bank and in hand
1,977,690
908,700
2,623,662
1,399,839
Creditors: amounts falling due within one year
6
(387,442)
(225,861)
Net current assets
2,236,220
1,173,978
Total assets less current liabilities
7,618,618
6,668,758
Creditors: amounts falling due after more than one year
7
(1,918,933)
Provisions for liabilities
(97,361)
(97,361)
Net assets
5,602,324
6,571,397
Capital and reserves
Called up share capital
9
4,682
3,765
Share premium account
17,032,171
16,341,215
Equity reserve
93,424
Capital redemption reserve
9
9
Profit and loss reserves
(11,527,962)
(9,773,592)
Total equity
5,602,324
6,571,397
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 July 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
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.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
IOSBIO LTD
BALANCE SHEET (CONTINUED)
AS AT 31 JULY 2024
31 July 2024
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 28 April 2025 and are signed on its behalf by:
Mr W M Channon
Director
Company registration number 04497290 (England and Wales)
IOSBIO LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
1
Accounting policies
Company information
IOSBIO Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Hayworthe House, Market Place, Haywards Heath, West Sussex, RH16 1DB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. true
The directors have considered relevant information, including the company’s principal risks and uncertainties, the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. The directors have reviewed up to date management information and ability to access additional funding and on this basis the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Turnover for services are recognised by reference to the stage of completion of the contract determined by the value of services provided at the balance sheet date.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents & licences
5% straight line per annum
Development costs
10% straight line per annum
IOSBIO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 4 -
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
20% straight line per annum
Plant and equipment
20% straight line per annum
Fixtures and fittings
20% straight line per annum
Computers
33% straight line per annum
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost.
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, bank loans and loans from fellow group companies, 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.
1.9
Compound instruments
The component parts of compound instruments issued by the company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangement. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for a similar non-convertible instrument. This amount is recorded as a liability on an amortised cost basis using the effective interest method until extinguished upon conversion or at the instrument's maturity date. The equity component is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognised and included in equity net of income tax effects and is not subsequently remeasured.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
IOSBIO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 5 -
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year.
Research and development repayable tax credits arise from surrendering losses in the year and are recognised in the year in which they relate.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average number of employees during the year was 12 (2023 - 14).
IOSBIO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 6 -
3
Intangible fixed assets
Patents & licences
Development costs
Total
£
£
£
Cost
At 1 August 2023
1,571,117
7,254,767
8,825,884
Additions
103,749
822,362
926,111
At 31 July 2024
1,674,866
8,077,129
9,751,995
Amortisation and impairment
At 1 August 2023
852,063
2,972,931
3,824,994
Amortisation charged for the year
52,579
697,233
749,812
Impairment losses
141,855
141,855
At 31 July 2024
1,046,497
3,670,164
4,716,661
Carrying amount
At 31 July 2024
628,369
4,406,965
5,035,334
At 31 July 2023
719,054
4,281,836
5,000,890
4
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 August 2023 and 31 July 2024
153,300
946,445
65,394
67,683
1,232,822
Depreciation and impairment
At 1 August 2023
82,787
584,487
17,928
53,730
738,932
Depreciation charged in the year
17,437
107,279
13,079
9,031
146,826
At 31 July 2024
100,224
691,766
31,007
62,761
885,758
Carrying amount
At 31 July 2024
53,076
254,679
34,387
4,922
347,064
At 31 July 2023
70,513
361,958
47,466
13,953
493,890
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
74,956
Corporation tax recoverable
380,000
309,424
Other debtors
191,016
181,715
645,972
491,139
IOSBIO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 7 -
6
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
279,827
75,883
Taxation and social security
46,532
55,813
Other creditors
61,083
94,165
387,442
225,861
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Convertible loans
1,918,933
On 23rd April 2024 the company entered into a convertible loan for £1.919 million at a rate of 10% with a redemption of 2 years and conversion price of £0.81 per share. £93,423 was recognised in an equity reserve at the year end.
8
Share-based payment transactions
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at start of period
403,168
346,852
1.16
1.16
Granted
79,316
1.16
Forfeited
1.16
Outstanding at end of period
403,168
403,168
1.16
1.16
Exercisable at end of period
327,352
327,352
1.16
1.16
Under the company's share option plan, share options were granted to key employees.
The employee is entitled to exercise 1/3 of the issued share options 1 year from the grant date, 1/3 of the issued share options 2 years from the grant date and 1/3 of the issued share options 3 years from the grant date.
The share options expire ten years after grant.
Options are forfeited if the employee leaves the company before they become entitled to exercise the share options.
For equity instruments granted before the date of transition to FRS 102, the company does not have to apply Section 26 of FRS 102 Share-based Payment, and on this basis no share-based payment charge has been recognised in these or any preceding financial statements of the company.
IOSBIO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 8 -
9
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.1p each
4,681,130
3,764,870
4,682
3,765
During the year, 916,258 shares with a nominal value of £0.001 were issued for consideration of £0.81 per share.
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
344,016
466,152
IOSBIO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 9 -
11
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Payments totalling £180,000 (2023 - £nil) were made to Channon Consultants LLP, an entity in which one of the directors has an interest. At the year end £nil (2023 - £nil) was owed from IOSBIO Ltd in respect of these transactions.
Payments totalling £24,000 (2023 - £26,945) were made to ProPharma Partners Limited, an entity in which one of the directors has an interest. At the year end £2,000 (2023 - £2,000) was owed from IOSBIO Ltd in respect of these transactions.