Registration number:
Inheriting Earth Limited
for the Year Ended 31 December 2024
Inheriting Earth Limited
Contents
Balance Sheet |
|
Notes to the Unaudited Financial Statements |
Inheriting Earth Limited
(Registration number: 11424510)
Balance Sheet as at 31 December 2024
Note |
Year Ended 31 December |
(As restated) |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investments |
|
- |
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
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 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
|
Inheriting Earth Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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
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
Staff numbers |
The average number of persons employed by the company (including directors) during the year was
Intangible assets |
Development costs |
Total |
|
Cost or valuation |
||
At 1 January 2024 (as restated) |
|
|
Additions |
|
|
At 31 December 2024 |
|
|
Amortisation |
||
Carrying amount |
||
At 31 December 2024 |
|
|
At 31 December 2023 (as restated) |
|
|
Inheriting Earth Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
Tangible assets |
Plant and machinery |
Furniture, fittings and equipment |
Other tangible assets |
Total |
|
Cost or valuation |
||||
At 1 January 2024 |
|
|
|
|
Additions |
|
- |
|
|
Disposals |
( |
( |
- |
( |
At 31 December 2024 |
|
|
|
|
Depreciation |
||||
At 1 January 2024 |
|
|
- |
|
Charge for the year |
|
|
- |
|
Eliminated on disposal |
( |
( |
- |
( |
At 31 December 2024 |
|
|
- |
|
Carrying amount |
||||
At 31 December 2024 |
|
|
|
|
At 31 December 2023 |
|
|
|
|
Investments |
Year Ended 31 December |
Period Ended 31 December |
|
Investments in subsidiaries |
|
- |
Subsidiaries |
£ |
Cost or valuation |
|
Additions |
|
Carrying amount |
|
At 31 December 2024 |
|
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 |
||||
|
Unit 5 Avon Trading Estate 20a Albert Road, St Philips, Bristol, United Kingdom, BS2 0XA |
|
|
|
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 |
Debtors |
Note |
Year Ended 31 December |
Period Ended 31 December |
|
Trade debtors |
|
- |
|
Amounts owed by related parties |
|
- |
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Income tax asset |
|
|
|
|
|
Inheriting Earth Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
Creditors |
Due within one year |
Note |
Year Ended 31 December |
Period Ended 31 December |
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Social security and other taxes |
|
|
|
Other creditors |
|
|
|
Accruals |
|
|
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
|
Other non-current financial liabilities |
|
- |
|
1,549,847 |
848,132 |
Share capital |
Allotted, called up and fully paid shares
Year Ended 31 December |
Period Ended 31 December |
|||
No. |
£ |
No. |
£ |
|
|
|
115.42 |
|
113.34 |
|
|
29.64 |
|
29.64 |
|
|
90.22 |
|
85.36 |
|
|
|
|
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
Loans and borrowings |
Non-current loans and borrowings
Year Ended 31 December |
Period Ended 31 December |
|
Bank borrowings |
|
|
Other borrowings |
|
|
|
|
Current loans and borrowings
Year Ended 31 December |
Period Ended 31 December |
|
Bank borrowings |
|
|
Hire purchase contracts |
- |
|
Other borrowings |
|
- |
|
|
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.
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.
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 £
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
Related party transactions |
Summary of transactions with subsidiaries