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Registration number: 11424510

Inheriting Earth Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2024

 

Inheriting Earth Limited

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 14

 

Inheriting Earth Limited

(Registration number: 11424510)
Balance Sheet as at 31 December 2024

Note

Year Ended 31 December
2024
£

(As restated)

Period Ended 31 December
2023
£

Fixed assets

 

Intangible assets

4

2,590,944

2,038,329

Tangible assets

5

878,523

561,396

Investments

6

1

-

 

3,469,468

2,599,725

Current assets

 

Debtors

7

1,020,591

470,747

Cash at bank and in hand

 

2,078,602

4,585,942

 

3,099,193

5,056,689

Creditors: Amounts falling due within one year

8

(503,879)

(339,209)

Net current assets

 

2,595,314

4,717,480

Total assets less current liabilities

 

6,064,782

7,317,205

Creditors: Amounts falling due after more than one year

8

(1,549,847)

(848,132)

Net assets

 

4,514,935

6,469,073

Capital and reserves

 

Called up share capital

9

235

228

Share premium reserve

9,060,989

8,652,152

Other reserves

853,558

-

Retained earnings

(5,399,847)

(2,183,307)

Shareholders' funds

 

4,514,935

6,469,073

 

Inheriting Earth Limited

(Registration number: 11424510)
Balance Sheet as at 31 December 2024

For the financial 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.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 30 April 2025 and signed on its behalf by:
 

Mr A P Root
Director

   
     
 

Inheriting Earth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Matter. Hq, Unit 5
Albert Road,
St. Philips
Bristol
BS2 OXA

These financial statements were authorised for issue by the Board on 30 April 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling, which is the functional currency of the company, and rounded to the nearest £.

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, despite the ongoing energy and cost of living increases.

The directors have reviewed the operations, key stakeholders and the capital resources available and consider that the company has adequate resources in place to continue trading for the next twelve months.

The directors have also reviewed and considered the company's available financing facilities and have concluded that the company will be able to continue to support itself for the foreseeable future. As such, these accounts have been prepared on a going concern basis.

 

Inheriting Earth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024

Prior period adjustments

During the year to 31 December 2024, the company adjusted its accounting policy for development costs such that only directly attributable costs are capitalised, with related overheads being recognised in the profit or loss. As a result, the comparative balance sheet and profit and loss account have been restated to release these costs from intangible assets to their respective profit and loss account. The effect of this has been disclosed below:

Relating to the current period disclosed in these financial statements
£

Relating to the prior period disclosed in these financial statements
£

Relating to periods before the prior period disclosed in these financial statements
£

Retained earnings

498,276

156,004

40,569

Development costs

(498,276)

(498,276)

(156,004)

Administrative expenses

-

342,272

115,435

   

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Inheriting Earth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the Balance Sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures, fittings and equipment

Straight line basis over 3 years

Plant and machinery

Straight line basis between 1 and 3 years

Assets under construction

Nil

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Development costs

Research and development expenditure is written off as incurred, except that development expenditure incurred on an individual project is capitalised as an intangible asset when the company can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the asset and the ability to measure reliably the expenditure during development. Only costs that are directly attributable to the asset under development are capitalised, with related overheads recognised in the profit or loss.

Following initial recognition of the development expenditure as an asset, the cost model is applied requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses. Over the years the company have developed a portfolio of intellectual property which is the foundation for the commercialisation of it's technology. As such, the value of intangible assets generated will be amortised in accordance with the commercialisation period of each asset, once the product hits the mass market. It is amortised evenly over the period of expected future benefit. During the period of development the asset is tested for impairment annually.

 

Inheriting Earth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from customers for the services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Inheriting Earth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the inital measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Inheriting Earth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024

Share based payments

The cost of equity-settled transactions with employees is measured by reference to the fair value at
the date on which they are granted and is recognised as an expense over the vesting period, which
ends on the date on which the relevant employees become fully entitled to the award. Fair value is
determined using an appropriate pricing model. In valuing equity-settled transactions, no account is
taken of any vesting conditions other than conditions linked to the price of the shares of the company
(market conditions).

No expense is recognised for awards that do not ultimately vest, except for awards where vesting is
conditional upon a market condition, which are treated as vesting irrespective of whether or not the
market condition is satisfied, provided that all other performance conditions are satisfied.

At each balance sheet date before vesting, the cumulative expense is calculated, representing the
extent to which the vesting period has expired and managements best estimate of the achievement or
otherwise of non-market conditions and of the number of equity instruments that will ultimately vest or,
in the case of an instrument subject to a market condition, be treated as vesting as described above.
The movement in cumulative expense since the previous balance sheet date is recognised in the
profit and loss account, with a corresponding entry in equity.

Where the terms of an equity-settled award are modified or a new award is designated as replacing a
cancelled or settled award, the cost based on the original award terms continues to be recognised
over the original vesting period. In addition, an expense is recognised over the remainder of the new
vesting period for the incremental fair value of any modification, based on the difference between the
fair value of the original award and the fair value of the modified award, both as measured on the date
of modification. No reduction is recognised if this difference is negative.

Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation,
and any cost not yet recognised in the income statement for the award is expensed immediately. Any
compensation paid up to the fair value of the award at the cancellation or settlement date is deducted
from equity, with any excess over fair value being treated as an expense in the profit and loss
account.

Convertible loan notes

The component of convertible loan notes that exhibits characteristics of debt is recognised as a liability in the Balance Sheet. On issue of convertible loan notes, the fair value of the liability component is determined using a market rate for an equivalent non-convertible bond and this amount is carried as a liability on the amortised cost basis until extinguished on conversion or redemption. The increase in the liability due to the passage of time is recognised as a finance cost. The remainder of the proceeds is allocated to the equity component and is recognised in shareholders' equity. The carrying amount of the equity component is not remeasured in subsequent years.

 

Inheriting Earth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024

3

Staff numbers

The average number of persons employed by the company (including directors) during the year was 42 (2023 - 26).

4

Intangible assets

Development costs
 £

Total
£

Cost or valuation

At 1 January 2024 (as restated)

2,038,329

2,038,329

Additions

552,615

552,615

At 31 December 2024

2,590,944

2,590,944

Amortisation

Carrying amount

At 31 December 2024

2,590,944

2,590,944

At 31 December 2023 (as restated)

2,038,329

2,038,329

 

Inheriting Earth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024

5

Tangible assets

Plant and machinery
 £

Furniture, fittings and equipment
£

Other tangible assets
 £

Total
£

Cost or valuation

At 1 January 2024

41,059

64,719

524,800

630,578

Additions

1,828

-

351,519

353,347

Disposals

(32,060)

(60,374)

-

(92,434)

At 31 December 2024

10,827

4,345

876,319

891,491

Depreciation

At 1 January 2024

27,089

42,093

-

69,182

Charge for the year

4,240

1,213

-

5,453

Eliminated on disposal

(21,619)

(40,048)

-

(61,667)

At 31 December 2024

9,710

3,258

-

12,968

Carrying amount

At 31 December 2024

1,117

1,087

876,319

878,523

At 31 December 2023

13,970

22,626

524,800

561,396

6

Investments

Year Ended 31 December
2024
£

Period Ended 31 December
2023
£

Investments in subsidiaries

1

-

Subsidiaries

£

Cost or valuation

Additions

1

Carrying amount

At 31 December 2024

1

 

Inheriting Earth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Subsidiary undertakings

Matter Limited

Unit 5 Avon Trading Estate 20a Albert Road, St Philips, Bristol, United Kingdom, BS2 0XA

Ordinary

100%

0%

The proportion of voting rights and shares held in relation to Matter Limited above is shown at 0% for the year ended 31 December 2023 as the company had not been incorporated at the year end.

Subsidiary undertakings

Matter Limited

The principal activity of Matter Limited is engineering design activities.

7

Debtors

Note

Year Ended 31 December
2024
£

Period Ended 31 December
2023
£

Trade debtors

 

18,589

-

Amounts owed by related parties

13

420

-

Other debtors

 

26,833

43,325

Prepayments

 

566,605

86,847

Income tax asset

408,144

340,575

 

1,020,591

470,747

 

Inheriting Earth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024

8

Creditors

Due within one year

Note

Year Ended 31 December
2024
£

Period Ended 31 December
2023
£

 

Loans and borrowings

10

208,680

12,671

Trade creditors

 

32,011

43,780

Social security and other taxes

 

70,801

84,520

Other creditors

 

5,958

29,781

Accruals

 

186,429

168,457

 

503,879

339,209

Due after one year

 

Loans and borrowings

10

1,548,459

848,132

Other non-current financial liabilities

 

1,388

-

 

1,549,847

848,132

9

Share capital

Allotted, called up and fully paid shares

Year Ended 31 December
2024

Period Ended 31 December
2023

No.

£

No.

£

Ordinary shares of £0.001 each

115,424

115.42

113,341

113.34

Seed shares of £0.001 each

29,639

29.64

29,639

29.64

Series A of £0.001 each

90,216

90.22

85,364

85.36

235,279

235.28

228,344

228.34

The movement in share capital is represented as follows:

- 2,083 Ordinary £0.001 shares were alloted for a total consideration of £8,811.
- 4,852 Series A shares were alloted for total consideration of £399,972.

 

Inheriting Earth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024

10

Loans and borrowings

Non-current loans and borrowings

Year Ended 31 December
2024
£

Period Ended 31 December
2023
£

Bank borrowings

5,279

15,641

Other borrowings

1,543,180

832,491

1,548,459

848,132

Current loans and borrowings

Year Ended 31 December
2024
£

Period Ended 31 December
2023
£

Bank borrowings

10,359

10,111

Hire purchase contracts

-

2,560

Other borrowings

198,321

-

208,680

12,671

Creditors include bank loans totalling £15,638 (2023 - £25,752).

Creditors include secured borrowings of £862,633 (2023 - £832,491) secured by fixed and floating charges over the properties in favour of Innovation UK Loans Limited.

11

Reserves

Other reserves

Included within other reserves is £26,428 relating to the equity component of convertible loan notes issued in the year, and £827,130 relating to amounts received under advance subscription agreements.

12

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £33,000 (2023 - £77,000).

Amounts disclosed in the balance sheet

Included in the balance sheet are pensions of £Nil (2023 - £18,273).

 

Inheriting Earth Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024

13

Related party transactions

Summary of transactions with subsidiaries

The company has taken advantage of the exemption under FRS 102 Section 1A not to disclose related party transactions with wholly owned members of the group.