ACCOUNTS - Final Accounts

Debtors: amounts falling due within one year

Cash at bank and in hand

Creditors: amounts falling due within one year

Net current liabilities

Total assets less current liabilities

Capital and reserves

Called up share capital

Profit and loss account

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M Hickman

Date: 26 September 2025

Basis of preparation of financial statements

Foreign currency translation

Revenue shall be recognised when all the following criteria are met:
1. Persuasive evidence of an arrangement exists
2. Delivery has occurred
3. The vendor’s fee is fixed or determinable
4. Collectability is probable
The Company’s technical support, access to professionals, and TPU access are not integrated with its SaaS offering, as the platform can function independently of these services and they do not significantly modify or customize it. SaaS services, including audit support, are consumed evenly over the contract term, providing continuous benefit to the customer. Revenue recognition begins once log-in credentials are provided and the account is fully set up, which may occur after implementation. A straight-line, time-based method is used to measure progress, reflecting the stand-ready nature of the service. Deferred revenue reflects the remaining portion of the contract at each reporting date.

The information below outlines how each revenue recognition criteria is met. In certain circumstances, reference is made to subsequent sections to address unique terms and conditions of a product/revenue stream.
1. Persuasive evidence of an arrangement exists – Since inception, the Company utilises standard written contracts, which are sometimes supplemented with additional customer vendor agreements if requested by the customer, which include the terms of the sale and that are binding on the customer. The Company does not recognise a contract as a valid booking unless a customer has effectively executed the agreement, whether by physical or electronic signature.
2. Delivery has occurred
Prior to July of 2019, the Company was only in the business of providing professional services and provided customers with the transfer pricing reports for each jurisdiction contracted with the Company. The customers were not provided access to the Company’s software solution. The Company recognized revenue under the completed contract approach, such that revenue for a specific term of the contract would not be recognised until the Company has delivered to the customer the completed work product, i.e. not in draft format, which can be utilised by the customer for third party usage, e.g. filing with government authorities or use in an annual audit.
Post July of 2019, The Company started providing transfer pricing solution as a software-as-a service (“SaaS”). The software platforms include access to the Company’s transfer pricing software, which is hosted by the Company. For software that is delivered electronically, delivery occurs when the customer’s user account is created in the software. In cases where the user creation date is earlier than the signing date, then the signing date is the trigger date to start recognizing revenue. Under this method, the Company’s services are consumed by the customer over the contract term. The customer has access to utilize the services throughout the contract term and therefore the customer receives benefit over that period of time. Since customers have equal access to the SaaS Services throughout the contract term, a time-based rateable method of recognition is considered appropriate. As a result, we elected to allow for recognition of revenue over time through the period of the contract.
Prior to 2023, the Company would occasionally extend a customer's license term if they experienced delays in gaining access to the software and initiating their usage. As a result, for contracts starting before 2023, revenue was often recognised from the user's creation date until 12 months later (assuming a 1-year deal).
However, beginning in 2023, the Company streamlined its internal processes and ceased the practice of extending license terms. For any contracts beginning in 2023 onwards, the license term will strictly adhere to the end date stated in the original contract. From a revenue recognition perspective, this change ensures that the revenue for such contracts is recognised based on the original contract term, providing a consistent and transparent financial reporting process.
3. The vendor’s fee is fixed or determinable – The fee is fixed through the execution of the contract process and is not subject to change based on other factors. The Company does offer a “safe start” feature, which gives a Customer a guarantee of a refund. The “safe start” feature is tightly constrained, which relies on the customer providing deliverables needed for completion within a certain timeframe as well as giving the Company sufficient time to cure any perceived cause for refund. To date, no refund request has been granted under the “safe start” feature of the Company’s professional service contracts.

4. Collectability is probable – The Company has a good history of collections at the invoice price. No further negotiations are done after invoicing.
Where a licence fee has been invoiced and payment settled, should there be a subsequent cancellation of the service, then no refund is due, and any deferred revenue is released and recognised as revenue at the point of cancellation.
This revenue recognition policy is in conformity with the consolidated financial statements prepared by the parent company, Exactera LLC.

Tangible fixed assets

The average monthly number of employees, including directors, during the year was 16 (2023 - 24).

Tangible fixed assets

Amounts owed by group undertakings

Prepayments and accrued income

Creditors: Amounts falling due within one year

Amounts owed to group undertakings

Other taxation and social security

Accruals and deferred income

Authorised, allotted, called up and fully paid

100 (2023 - 100) Ordinary shares of $1 each

Related party transactions

Exactera Limited is a wholly owned subsidiary of Exactera LLC. The company has taken advantage of the exemption under FRS102 'Related party disclosures' from disclosing transactions with other members of the group headed by Exactera LLC.

Auditors' information

In their report, the auditors emphasised the following matter without qualifying their report:

We draw attention to note 2.2 in the financial statements, which indicates that Exactera Limited incurred a loss for the year ended 31 December 2024, and as of that date had net liabilities of £5,247,744. The company is reliant on the support from its parent company Exactera LLC, who in turn are reliant on further funding from their investors to continue as a going concern. As stated in note 2.2, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company‘s ability to continue as a going concern. Our opinion is not modified in respect of this matter.