iso4217:GBP xbrli:pure xbrli:shares iso4217:GBP xbrli:shares SC388915 2024-12-31 SC388915 2023-12-31 SC388915 2024-01-01 2024-12-31 SC388915 2023-01-01 2023-12-31 SC388915 bus:Director2 2024-01-01 2024-12-31 SC388915 bus:Director3 2024-01-01 2024-12-31 SC388915 bus:Director1 2024-01-01 2024-12-31 SC388915 bus:Director4 2024-01-01 2024-12-31 SC388915 bus:SmallEntities 2024-01-01 2024-12-31 SC388915 bus:AuditExemptWithAccountantsReport 2024-01-01 2024-12-31 SC388915 bus:FilletedAccounts 2024-01-01 2024-12-31 SC388915 bus:Director1 2024-01-01 2024-12-31 SC388915 2024-01-01 2024-12-31 SC388915 bus:PrivateLimitedCompanyLtd 2024-01-01 2024-12-31
SPEECH GRAPHICS LTD
Registration Number SC388915 (Scotland)
Filleted Unaudited Financial Statements
for the year ended 31 December 2024
SPEECH GRAPHICS LTD
Filleted Financial Statements for the year ended 31 December 2024
STATEMENT OF FINANCIAL POSITION
Notes
2024 £
2023 £
Fixed assets
Tangible assets
3
303,855
413,301
Investments
4
7,559
7,559
311,414
420,860
Current assets
Debtors
5
2,542,178
1,105,382
Cash at bank and in hand
858,173
3,737,271
3,400,351
4,842,653
Current liabilities
Creditors: amounts falling due within one year
6
2,415,200
2,046,490
Net current assets
985,151
2,796,163
Total assets less current liabilities
1,296,565
3,217,023
Net assets
1,296,565
3,217,023
Capital and reserves
Called up share capital
7
230
219
Share premium account
7
10,548,591
8,942,214
Non-distributable reserves
-
1,606,388
Profit and loss account
(9,252,256)
(7,331,798)
Shareholder's funds
1,296,565
3,217,023
For the 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 accounts for the year ended 31 December 2024 in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirments of the Companies Act 2006 with respect ot accounting records and the preparation of accounts.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the Board of Directors on 15 September 2025.
Signed on behalf of the Board of Directors
SPEECH GRAPHICS LTD
Filleted Financial Statements for the year ended 31 December 2024
STATEMENT OF FINANCIAL POSITION
Notes
2024 £
2023 £
_______________________
_______________________
Dr G O Hofer
Mr M A Berger
The notes on pages 2 to 9 form part of these accounts.
Company registration number: SC388915
SPEECH GRAPHICS LTD
Financial Statements for the year ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
1.
Summary of significant accounting policies
1.1
General information and basis of preparation
Speech Graphics Ltd is a private company limited by shares, registered in Scotland. The address of the registered office and registration number are as below:
61 Dublin Street
Edinburgh
Scotland
EH3 6NL
These financial statements have been prepared in accordance with FRS 102 the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland as adapted by Section 1A of FRS 102 and the Companies Act 2006.
The nature of the company's operations and principal activities was being involved in the development of vocal driven facial animation solutions during the year.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.
Consolidation
The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the company and its subsidiary undertakings comprise a small group.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model. Under the accrual model, government grant relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.
Going concern
The financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.
SPEECH GRAPHICS LTD
Financial Statements for the year ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
The company reported a net current liability position of £285,781 at 31 December 2024 (31 December 2023: net current asset £2,796,163) and a net asset position of £25,633 (31 December 2023: £3,217,023). Due to the continued support of investors, the board of directors has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and they therefore continue to adopt the going concern basis of accounting in preparing the financial statements.
SPEECH GRAPHICS LTD
Financial Statements for the year ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
1.2
Intangible assets - other
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised only when all of the following criteria are met:
• It is technically feasible to complete the intangible asset so that it will be available for use or sale;
• There is the intention to complete the intangible asset and use or sell it;
• There is the ability to use or sell the intangible asset;
• The use or sale of the intangible asset will generate probable future economic benefits;
• There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and
• The expenditure attributable to the intangible asset during its development can be measured reliably.
Expenditure that does not meet the above criteria is expensed as incurred.
1.3
Tangible fixed assets
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:
Asset class
Useful life / depreciation rate
Leasehold property
20% straight line
Fixtures and fittings
25% straight line
Equipment
33% straight line
1.4
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
SPEECH GRAPHICS LTD
Financial Statements for the year ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
1.5
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Other financial assets, including trade debtors for goods sold to customers on short-term credit, are initially measured at the transaction price including transaction costs, and are subsequently measured at the transaction price plus transaction costs not yet recognised, cumulative interest income less repayments and impairment, where there is evidence of impairment.
Other financial liabilities
Other financial liabilities, including trade creditors, are initially measured at transaction price less transaction costs, and are subsequently measured at the transaction price less transaction costs not yet recognised in profit or loss and repayments plus cumulative interest expenses incurred.
Impairment of financial assets
At the end of each reporting period, the company assesses whether there is evidence of impairment of any financial assets, including investments, loans, trade debtors and cash. If there is evidence of impairment, impairment losses are recognised in the Profit and Loss account in that financial year.
1.6
Impairment
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.
1.7
Leases
Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
1.8
Tax
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
With effect from the year ended 31 December 2021, any research and development tax credit will be recognised in the year to which it relates.
SPEECH GRAPHICS LTD
Financial Statements for the year ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
1.9
Turnover and other income
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:
Rendering of services
When the outcome of a transaction can be estimated reliably, turnover from rendering of services is recognised by reference to the stage of completion at the end of the reporting period.
Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable.
1.10
Foreign currency
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with gains or losses being taken to the profit and loss account.
1.11
Share-based payment
The cost and corresponding increase in equity in respect of equity-settled share-based payment transactions with employees are measured by reference to the fair value of equity instruments issued at the date of grant. Amounts are expensed on a straight line basis over the vesting period based on the estimate of shares that will eventually vest and adjusted for the effect of non market-based vesting conditions. The cost and fair value of the liability incurred in respect of cash-settled transactions is measured using an appropriate option pricing model with changes in fair value recognised in profit or loss for the period. Further detail is provided in note 29.
Fair value is determined using an appropriate pricing model. All market conditions and non-vesting conditions are taken into account when estimating the fair value of the shares or share options. As long as all other vesting conditions are satisfied, no adjustment is made irrespective of whether market or non-vesting conditions are met.
Where the terms of an equity-settled transaction are modified, an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the fair value of the transaction, as measured at the date of modification.
Where an equity-settled transaction is cancelled or settled, it is treated as if it had vested on the date of cancellation or settlement, and any expense not yet recognised in profit or loss is expensed immediately.
Cash-settled share-based payment transactions are measured at the fair value of the liability. Until the liability is settled, the fair value of the liability is re-measured at each reporting date and at the date of settlement, with any changes in fair value recognised in profit or loss for the period.
2.
Employees
The average monthly number of employees, including directors, during the year was as follows:
2024
2023
Employees
45
46
SPEECH GRAPHICS LTD
Financial Statements for the year ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
3.
Tangible assets
Balances at year end and movements for the year
Leasehold property £
Fixtures and fittings £
Equipment £
Total £
Cost
At 01 January 2024
195,718
191,242
225,292
612,252
Additions
3,116
109
28,877
32,102
Disposals
-
-
(1,107)
(1,107)
At 31 December 2024
198,834
191,351
253,062
643,247
Depreciation
At 01 January 2024
(24,571)
(41,855)
(132,525)
(198,951)
Charge for the year
(39,544)
(43,873)
(57,359)
(140,776)
Eliminated on disposals
-
-
335
335
At 31 December 2024
(64,115)
(85,728)
(189,549)
(339,392)
Net book value
At 01 January 2024
171,147
149,387
92,767
413,301
At 31 December 2024
134,719
105,623
63,513
303,855
SPEECH GRAPHICS LTD
Financial Statements for the year ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
4.
Investments
Movement in investments
Shares in group undertakings £
Cost or valuation
At 01 January 2024
7,559
At 31 December 2024
7,559
Impairment
At 01 January 2024
-
At 31 December 2024
-
Carrying amount
At 31 December 2023
7,559
At 31 December 2024
7,559
The company owns 100% of the issued share capital of the following subsidiaries:
• Speech Graphics USA Inc, a company incorporated in the state of Delaware.
• Speech Graphics Hungary Korlátolt Felelosségu Társaság, a Hungarian limited company.
• Speech Graphics Asia Pte Ltd, a company incorporated in the Republic of Singapore.
5.
Debtors
2024 £
2023 £
Trade debtors
342,415
223,039
Other debtors
199,439
227,554
Value added tax
42,618
19,064
Amounts owed by group undertakings
652,967
635,725
Corporation tax
1,304,739
-
2,542,178
1,105,382
6.
Creditors: amounts falling due within one year
2024 £
2023 £
Trade creditors
279,077
92,338
Other creditors
2,050,695
1,786,155
Social security and other taxes
85,428
93,632
Amounts owed to group undertakings
-
74,365
2,415,200
2,046,490
SPEECH GRAPHICS LTD
Financial Statements for the year ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
7.
Called up share capital
Issued, called up and fully paid
2024
2023
Number
£
Number
£
Ordinary shares of £0.0001 each
1,680,566
168
1,680,566
168
Series A1 shares of £0.0001 each
500,055
50
391,961
39
Series A2 shares of £0.0001 each
117,448
12
117,448
12
2,298,069
230
2,189,975
219
The advanced subscription shares of $2,000,000 that were issued on 20 June 2022 were converted into 108,094 series A1 shares in the company on 14 October 2024.
8.
Share-based payments
Certain employees had been granted options to subscribe for shares in the company under share option schemes as follows: Details of the number and weighted average exercise prices (WAEP) of share options during the year are as follows:
Weighted average exercise price in £ 2024
Options 2024
Weighted average exercise price in £ 2023
Options 2023
Outstanding at the beginning of the period
2
84,460
4
85,520
Granted during the period
2
1,700
-
-
Forfeited during the period
-
-
-
-
Expired during the period
(2)
(7,300)
(2)
(1,060)
Outstanding at the end of the period
2
78,860
2
84,460
The total expense recognised during the year in respect of share based payments totalled £13,583 (2023 - £30,938).
The estimated fair values were calculated by applying Black-Scholes option pricing model. The model inputs were:
2024
Exercise price
£1.28 - £1.93
Expected volatility
70%
Expected life
10 years
Risk free interest rate
0.505-3.946%
Dividend yield
0%
SPEECH GRAPHICS LTD
Financial Statements for the year ended 31 December 2024
NOTES TO THE FINANCIAL STATEMENTS
Related party transactions
The company has taken advantage of the exemption under FRS 102 33.1A from disclosing transactions entered into between wholly-owned members of the group.
9.
Securities granted
HSBC Innovation Bank Limited (HSBC Innovation Banking) holds a fixed charge dated 17 August 2023, which creates a security interest in favour of HSBC Innovation Banking over specified accounts held by the company at HSBC Innovation Banking to secure the company's current and future obligations to HSBC Innovation Banking.
Appendix - Additional XBRL Tags and Values
Accounting standards applied
bus_SmallEntities
Accounts status, audited or unaudited
bus_AuditExemptWithAccountantsReport
Accounts type
bus_FilletedAccounts
Average number of employees during the period
46
Average number of employees during the period
45
Balance sheet date
31 December 2024
Date of authorisation of financial statements for issue
15 September 2025
Director signing Directors' Report
bus_Director1
Director signing financial statements
bus_Director1
End date for period covered by report
31 December 2024
Entity current legal or registered name
Speech Graphics Ltd
Entity is dormant [true/false]
false
Entity trading status
[default]
Legal form of entity
bus_PrivateLimitedCompanyLtd
Name of entity auditors
CT
Name of entity officer
Mr M A Berger
Name of entity officer
Mr D J T Montgomery
Name of entity officer
Dr G O Hofer
Name of entity officer
Mr M G Graninger
Name of individual auditor
CT
Name of production software
Draftworx Cloud
Start date for period covered by report
01 January 2024
UK Companies House registered number
SC388915