Hilight Semiconductor Limited - Accounts to registrar (filleted)

REGISTERED NUMBER: 08324226 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2024

FOR

HILIGHT SEMICONDUCTOR LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTOR:

J G Steele

REGISTERED OFFICE:

Parkers

Cornelius House

178-180 Church Road

Hove

East Sussex

BN3 2DJ

REGISTERED NUMBER:

08324226 (England and Wales)

ACCOUNTANTS:

Parkers

178-180 Church Road

Hove, East Sussex

BN3 2DJ

FIXED ASSETS

Tangible assets

4

1,086,320

1,448,362

Investments

5

2

1,086,322

1,448,364

CURRENT ASSETS

Stocks

1,062,384

1,324,410

Debtors

6

221,878

2,817,041

Cash at bank

303,905

4,927

1,588,167

4,146,378

CREDITORS

Amounts falling due within one year

7

14,441,306

19,768,597

NET CURRENT LIABILITIES

(12,853,139

)

(15,622,219

)

TOTAL ASSETS LESS CURRENT
LIABILITIES

(11,766,817

)

(14,173,855

)

CAPITAL AND RESERVES

Called up share capital

8

3,621,664

Share premium

30,954,709

Retained earnings

(46,343,190

)

(48,750,228

)

SHAREHOLDERS' FUNDS

(11,766,817

)

(14,173,855

)

(11,766,817

)

(14,173,855

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st December 2024 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 17th September 2025 and were signed by:

J G Steele - Director

1.	STATUTORY INFORMATION

Hilight Semiconductor Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared on the going concern basis due to the continuing support of the principal shareholders.

Significant judgements and estimates

No significant judgements have had to be made by the directors in preparing these financial statements other than as regards the realisable value of the stock.

Turnover

Turnover represents net invoiced sales of goods and services, excluding value added tax.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

at varying rates on cost

Fixtures and fittings

-

15% on cost

Tooling (masks)

-

10% on cost

Computer equipment

-

33% on cost

The company's own production masks (tooling) are capitalised at their cumulative development cost once the design has been finalised and tested and production has commenced.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks of finished products ready for sale and product work in progress are valued at original cost, which is expected to continue to be less than realisable value, with no provisions for obsolete or slow moving items.

Cost includes initial purchase and subsequent processing costs at the US$ rate applicable at the time of purchase and, as all stocks are held at the third party processors, there are no costs in bringing stocks to their present location.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, asset finance and loans from related parties.

Financial assets that are measured at cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Secondary rentals on finance lease assets retained but fully depreciated over the primary rental period are expensed as operating lease rentals with the liability disclosed as a rental commitment.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Grants

Grants are credited to profit and loss account as the eligible expenditure is incurred except where costs exceed the approved budget and the completion date is uncertain when estimated time to complete is used to time apportion the income over the life of the project.

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value, like intellectual property, plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss.

Stock and work in progress is also assessed for impairment at each reporting date but carried at original cost.If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 6 (2023 - 2 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1st January 2024

and 31st December 2024

6,275,866

DEPRECIATION

At 1st January 2024

4,827,504

Charge for year

362,042

At 31st December 2024

5,189,546

NET BOOK VALUE

At 31st December 2024

1,086,320

At 31st December 2023

1,448,362

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1st January 2024

and 31st December 2024

2

NET BOOK VALUE

At 31st December 2024

2

At 31st December 2023

2

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

Trade debtors

107,648

21,261

Amounts owed by group undertakings

-

884,920

Other debtors

114,230

1,910,860

221,878

2,817,041

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

Trade creditors

216,117

874,700

Taxation and social security

8,032

7,170

Other creditors

14,217,157

18,886,727

14,441,306

19,768,597

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

569,883

Ordinary

12.5p

71,236

5,435,349

A Ordinary Non-Voting

12.5p

679,419

4,454,031

B Preferred

12.5p

556,754

4,520,155

Series A

12.5p

565,019

2,733,298

Series B

12.5p

341,662

143,500

C Ordinary

12.5p

17,938

7,418,446

Series C Convertible Preferred

12.5p

927,307

3,698,635

Series D Convertible Preferred

12.5p

462,329

3,621,664

Options:

As at 1st January 2024 and 31st December 2024, the company had options in force over 2,380,600 A Ordinary Non-Voting shares, 1,299,600 at £0.125 (1,299,600 vested), 416,000 at £1.00 (416,000 vested), 295,000 at £1.60 (295,000 vested), 21,000 at £0.25 (21,000 vested) and 349,000 at $0.20 (116,000 vested).

No options lapsed or were exercised during the year.

9.	RELATED PARTY DISCLOSURES

At the year end the company owed £4,591,328 (2023: £5,013,708) to Roundhurst Holdings Limited, a company controlled by Mr J G Steele. The loan is interest free, designated in GBP and repayable on demand. The company also owed $1,151,287 (2023: $1,151,287) to Roundhurst Holdings Limited. Interest is charged on the loan at 6% per annum but not accrued as it will be waived on conversion into Series C shares at the lenders discretion.The loan is designated in USD.

At the year end the company also owed $2,025,000 (2023: $2,025,000) to Atlantic Bridge III Limited Partnership, a shareholder of the company. Interest is charged on the loan at 6% per annum but not accrued as it will be waived on conversion into Series C shares at the lenders discretion.The loan is designated in USD.