Company registration number 14531716 (England and Wales)
ADVANCE AI LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PAGES FOR FILING WITH REGISTRAR
ADVANCE AI LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
ADVANCE AI LTD
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
4
630,835
517,303
Tangible assets
5
14,656
8,225
645,491
525,528
Current assets
Debtors
7
1,326,981
154,119
Cash at bank and in hand
64,350
36,250
1,391,331
190,369
Creditors: amounts falling due within one year
8
(3,530,595)
(1,635,609)
Net current liabilities
(2,139,264)
(1,445,240)
Net liabilities
(1,493,773)
(919,712)
Capital and reserves
Called up share capital
9
313
233
Share premium account
1,736,394
209,886
Profit and loss reserves
(3,230,480)
(1,129,831)
Total equity
(1,493,773)
(919,712)
For the financial year ended 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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.
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.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 11 August 2025 and are signed on its behalf by:
Mr G Colleran
Director
Company registration number 14531716 (England and Wales)
ADVANCE AI LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
1
Accounting policies
Company information
Advance AI Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 3 Gransden Park, Potton Road, Abbotsley, Cambridgeshire, PE19 6TY.
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
These financial statements have been prepared on a going concern basis. The Company has incurred losses and has negative net assets at 31 December 2024. However, the directors have secured a bank loan to support cash-flow and believe the Company has strong growth prospects due to increasing demand for its AI applications. Cost management actions are underway, and further funding options are being pursued. The directors are confident the Company can meet its obligations for at least 12 months.true
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 in respect of long-term contracts and contracts for on-going services is recognised on a straight-line basis over the period of contracts.
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:
Development costs
5 year straight line
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.
ADVANCE AI LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 3 -
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:
IT equipment
3 year straight line
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
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
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.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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 using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
ADVANCE AI LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 4 -
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, loans from fellow group companies and preference shares that are classified as debt, 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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
1.11
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
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 the 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The key area of judgement in these financial statements is the estimation of the useful life of the capitalised software to be five years. This is being reviewed by the directors on an ongoing basis.
ADVANCE AI LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
11
9
4
Intangible fixed assets
Development costs
£
Cost
At 1 January 2024
608,216
Additions
262,504
At 31 December 2024
870,720
Amortisation and impairment
At 1 January 2024
90,913
Amortisation charged for the year
148,972
At 31 December 2024
239,885
Carrying amount
At 31 December 2024
630,835
At 31 December 2023
517,303
The additions to the intangible fixed asset relate to development costs incurred in enhancing a proprietary AI application. Costs have been capitalised in line with FRS 102 Section 18.
5
Tangible fixed assets
IT equipment
£
Cost
At 1 January 2024
9,035
Additions
14,164
At 31 December 2024
23,199
Depreciation and impairment
At 1 January 2024
810
Depreciation charged in the year
7,733
At 31 December 2024
8,543
ADVANCE AI LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
5
Tangible fixed assets
IT equipment
£
(Continued)
- 6 -
Carrying amount
At 31 December 2024
14,656
At 31 December 2023
8,225
6
Subsidiaries
Advance AI Limited owns 100% of the share capital of Advanceanalytics.tech LLC, a limited liability company incorporated in the USA on 12 January 2023. The shares have no nominal value. Advanceanalytics.tech LLC's Registered Office address is 449 N Pennsylvania Ave, Morrisville, PA 19067-6622.
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,307,404
146,780
Other debtors
19,577
7,339
1,326,981
154,119
8
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
721,327
691,209
Taxation and social security
99,544
19,203
Other creditors
2,709,724
925,197
3,530,595
1,635,609
Included in Trade creditors is an amount of £595,407 (2023: £533,603) due to Healthcare Interaction Limited, a company controlled by a director and shareholder of Advance AI Limited.
Included in Other creditors is an unsecured interest free loan of £351,720 (2023: £169,740) due to Healthcare Interaction Limited.
Also included in Trade creditors is an amount of £75,407 (2023: £nil) due to Advance Analytics LLC, a subsidiary of Healthcare Interaction Limited, in relation to software development costs.
All amounts due to Healthcare Interaction Limited and Advance Analytics LLC are payable on demand, however the directors of Healthcare Interaction Limited have confirmed that these amounts will not be demanded until Advance AI Limited is in a position to be able to pay them.
ADVANCE AI LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
9
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
10,000
10,000
100
100
A Ordinary of 1p each
11,975
11,975
120
120
B Ordinary of 1p each
1,282
1,282
13
13
C Ordinary of 1p each
8,030
0
80
31,287
23,257
313
233