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Registration number: 09775003

Wavetrak Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2024

 

Wavetrak Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 8

 

Wavetrak Limited

(Registration number: 09775003)
Balance Sheet as at 31 December 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

5

27,114

18,041

Current assets

 

Debtors

6

261,400

216,191

Cash at bank and in hand

 

61,468

42,924

 

322,868

259,115

Creditors: Amounts falling due within one year

7

(100,635)

(126,201)

Net current assets

 

222,233

132,914

Net assets

 

249,347

150,955

Capital and reserves

 

Called up share capital

1

1

Share option reserve

159,785

136,498

Other reserves

669,097

669,097

Retained earnings

(579,536)

(654,641)

Shareholders' funds

 

249,347

150,955

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 20 June 2025 and signed on its behalf by:
 

D Berg
Director

   
     
 

Wavetrak Limited

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

1

General information

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

The address of its registered office is:
23 Royal William Yard
Unit 28
Plymouth
Devon
England

These financial statements were authorised for issue by the Board on 20 June 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

The Directors consider the Company to be a going concern as it is supported by its parent company, Surfline\Wavetrak, Inc., which has agreed to provide continued support for at least a period of 12 months following the date of approval of these financial statements.

The Directors have made enquiries and believe that the Company has adequate resources, assisted by continued support to be provided by the parent Company, to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the Company's financial statements.

 

Wavetrak Limited

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

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 1 July 2025 was Guy Armitage-Norton, who signed for and on behalf of ML Audit LLP.

Prior period adjustments

During the current year, the Company reviewed its revenue recognition policy to ensure that this suitably aligns with the principal activity of the Company. As a result, certain revenue streams previously classified under other operating income have now been recognised under turnover. The restatement impacts the comparative figures for the prior period but is solely a reclassification within the profit and loss account and therefore does not give rise to any effect on the capital and reserves figure previously reported. The impact of the referenced reclassification can be seen as per the below table:

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
£

Other operating income

-

(1,874,022)

-

Intercompany revenue

-

1,874,022

-

   

Judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about carrying amount of assets and liabilities that are not readily apparent from other sources.

The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which are considered to have a significant risk of causing material adjustment to the carrying amount of assets and liabilities are the fair value of stock options and revenue recognition.

Revenue recognition

 

Wavetrak Limited

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

Turnover comprises the fair value of the consideration received or receivable for the 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.

Subscription revenue is recognised in the period to which the subscription relates.

The Company is contracted by its parent company Surfline\Wavetrak, Inc. to deliver general business operations services under an intercompany agreement. The Company is remunerated by its ultimate parent for these services.

Finance income and costs policy

Finance costs are charged to the Profit and Loss account 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 capital instrument.

Foreign currency transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transaction.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non--monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income with 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of comprehensive income within 'other operating income'.

Tax

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.

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.

 

Wavetrak Limited

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

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

Office equipment

3 years - Straight Line

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

Short term debtors are measured at transaction price, less any impairment

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.

Other short term creditors are measured at the transaction price.

Leases

Rentals paid under operating leases are charged to Statement of comprehensive income on a straight-line basis over the lease terms.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the 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 initial measurement is on a present value basis.

Other reserves

Other reserves represents capital contributions from the parent entity.

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 

Wavetrak Limited

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

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.

Share based payments

The company operates an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.

The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year was 30 (2023 - 25).

4

Exceptional items

2024
£

2023
£

Gain on sale of assets

-

(833,188)

On the 11th May 2023, the Company disposed of its Magicseaweed intellectual property and related assets to Surfline\Wavetrak, Inc. for the consideration of £947,311. The gain recognised on the disposal was £833,188.

 

Wavetrak Limited

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

5

Tangible assets

Office equipment
£

Total
£

Cost or valuation

At 1 January 2024

119,048

119,048

Additions

23,559

23,559

Disposals

(7,000)

(7,000)

At 31 December 2024

135,607

135,607

Depreciation

At 1 January 2024

101,007

101,007

Charge for the year

14,486

14,486

Eliminated on disposal

(7,000)

(7,000)

At 31 December 2024

108,493

108,493

Carrying amount

At 31 December 2024

27,114

27,114

At 31 December 2023

18,041

18,041

6

Debtors

2024
£

2023
£

Amounts owed by related parties

10

239,854

203,595

Other debtors

 

21,546

12,596

 

261,400

216,191

7

Creditors

Due within one year

2024
£

2023
£

Trade creditors

9,334

15,496

Social security and other taxes

88,101

72,543

Accruals and deferred income

3,200

38,162

100,635

126,201

8

Pensions commitments

Included in the balance sheet are pensions commitments of £6,616 (2023 - £Nil).

 

Wavetrak Limited

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

9

Financial commitments, guarantees and contingencies

Included in the balance sheet are financial commitments under non-cancellable operating leases of £Nil (2023 - £Nil).

10

Related party transactions

Summary of transactions with parent

The company has taken advantage of the exemption contained in Section 33 of FRS 102 “Related Party Disclosures” from disclosing transactions with entities which are wholly-owned members of the group headed by Surfline\Wavetrak, Inc.

11

Parent and ultimate parent undertaking

The company's immediate and ultimate parent is Surfline\Wavetrak, Inc. incorporated in United States of America.

 The smallest group to consolidate is Surfline\Wavetrak, Inc. These financial statements are available upon request from 2261 Market Street, Suite 10852, San Francisco, CA 94114, USA.