Registration number:
Wavetrak Limited
for the Year Ended 31 December 2024
Wavetrak Limited
(Registration number: 09775003)
Balance Sheet as at 31 December 2024
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Note |
2024 |
2023 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Net assets |
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Capital and reserves |
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Called up share capital |
1 |
1 |
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Share option reserve |
159,785 |
136,498 |
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Other reserves |
669,097 |
669,097 |
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Retained earnings |
(579,536) |
(654,641) |
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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
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Wavetrak Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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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:
England
These financial statements were authorised for issue by the
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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
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
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:
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Asset class |
Depreciation method and rate |
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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.
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Staff numbers |
The average number of persons employed by the company (including directors) during the year was
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Exceptional items |
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2024 |
2023 |
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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
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Tangible assets |
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Office equipment |
Total |
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Cost or valuation |
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At 1 January 2024 |
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Additions |
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Disposals |
( |
( |
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At 31 December 2024 |
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Depreciation |
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At 1 January 2024 |
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Charge for the year |
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Eliminated on disposal |
( |
( |
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At 31 December 2024 |
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Carrying amount |
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At 31 December 2024 |
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At 31 December 2023 |
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Debtors |
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2024 |
2023 |
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Amounts owed by related parties |
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Other debtors |
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Creditors |
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Due within one year |
2024 |
2023 |
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Trade creditors |
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Social security and other taxes |
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Accruals and deferred income |
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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
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Financial commitments, guarantees and contingencies |
Included in the balance sheet are financial commitments under non-cancellable operating leases of £Nil (2023 - £Nil).
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Related party transactions |
Summary of transactions with parent
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Parent and ultimate parent undertaking |
The company's immediate and ultimate parent is
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.