REGISTERED NUMBER: 10005971 (England and Wales)

Report of the Directors and

Financial Statements for the Year Ended 31 December 2024

for

Hark Systems Ltd.

Page

Company Information

1

Report of the Directors

2

Balance Sheet

4

Notes to the Financial Statements

5

DIRECTORS:

J W Appleson

N Ohana Weiner (Ohana)

Y Nir

A Alperovitz

REGISTERED OFFICE:

Platform 5A

New Station Street

Leeds

West Yorkshire

LS1 4JB

REGISTERED NUMBER:

10005971 (England and Wales)

AUDITORS:

Richard Smedley Limited

Chartered Accountants & Registered Auditors

Richmond House

Lawnswood Business Park

Redvers Close

Leeds

West Yorkshire

LS16 6QY

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of creating software and technology to monitor and analyse sensor data.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

J W Appleson has held office during the whole of the period from 1 January 2024 to the date of this report.

Other changes in directors holding office are as follows:

A Porat - appointed 26 August 2024

N Ohana Weiner (Ohana) , Y Nir and A Alperovitz were appointed as directors after 31 December 2024 but prior to the date of this report.

J Schaechter , A Porat and R Faier ceased to be directors after 31 December 2024 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Richard Smedley Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

J W Appleson - Director

29 September 2025

FIXED ASSETS

Tangible assets

4

84,664

99,844

CURRENT ASSETS

Stocks

66,443

12,595

Debtors

5

1,838,671

974,358

Cash at bank

933,169

540,902

2,838,283

1,527,855

CREDITORS

Amounts falling due within one year

6

3,137,613

1,023,552

NET CURRENT (LIABILITIES)/ASSETS

(299,330

)

504,303

TOTAL ASSETS LESS CURRENT LIABILITIES

(214,666

)

604,147

CAPITAL AND RESERVES

Called up share capital

15

15

Share premium

3,064,188

3,064,188

Retained earnings

(3,278,869

)

(2,460,056

)

SHAREHOLDERS' FUNDS

(214,666

)

604,147

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 Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

J W Appleson - Director

1.	STATUTORY INFORMATION

Hark Systems Ltd. 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

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in GBP which is the currency of the primary economic environment in which the Company operates and are rounded to the nearest pound.

The preparation of the financial statements are in compliance with FRS 102 requires the use of certain critical accounting accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.

Going concern:

The directors have assessed the Company's ability to continue as a going concern and have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The period to which the directors have paid particular attention in assessing the appropriateness of the going concern basis is not less than twelve months from the date of approval of the financial statements. In doing this, they have considered the results for the period, expectations of future trading and the availability of continued funding. The Company's going concern is dependent on the financial support from the Parent Company. In this regard, the Company has parent undertaking, i.e. support letter in which the Parent Company has agreed to provide financial support so as to allow the Company to pay its debts as they fall due for a period of at least twelve months from the date of the balance sheet approval. Accordingly, the directors consider that it is appropriate to prepare these financial statements on a going concern basis.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover is measured at the value of the consideration received on the provision of the goods and services to the customers excluding Value Added Tax. Revenue is recognised upon completion of the order and the company has received the rights to the consideration.

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of turnover can be measured reliably;

- it is probable the Company will receive the consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably;

- the costs incurred and the costs to complete the contract can be measured reliably.

Tangible fixed assets

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

Improvements to property

-

Straight line over 6 years

Fixtures and fittings

-

25% on reducing balance and 7% on cost

Computer equipment

-

Straight line over 3 years

Work in progress

Work in progress is valued at the lower of cost or net realisable value.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location.

Financial instruments

Basic financial instruments are recognised at amortised costs. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.

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

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

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 34 (2023 - 25 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

and

Computer

property

fittings

equipment

Totals

£

£

£

£

COST

At 1 January 2024

13,214

55,572

88,832

157,618

Additions

-

216

5,728

5,944

At 31 December 2024

13,214

55,788

94,560

163,562

DEPRECIATION

At 1 January 2024

734

2,611

54,429

57,774

Charge for year

2,202

3,846

15,076

21,124

At 31 December 2024

2,936

6,457

69,505

78,898

NET BOOK VALUE

At 31 December 2024

10,278

49,331

25,055

84,664

At 31 December 2023

12,480

52,961

34,403

99,844

5.

DEBTORS

31.12.24

31.12.23

£

£

Amounts falling due within one year:

Trade debtors

376,590

249,526

Other debtors

1,411,132

673,883

1,787,722

923,409

Amounts falling due after more than one year:

Other debtors

50,949

50,949

Aggregate amounts

1,838,671

974,358

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

£

£

Trade creditors

42,723

69,417

Amounts owed to group undertakings

1,735,902

-

Taxation and social security

113,175

92,584

Other creditors

1,245,813

861,551

3,137,613

1,023,552

7.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31.12.24

31.12.23

£

£

Within one year

169,830

84,915

Between one and five years

629,786

679,320

In more than five years

-

120,296

799,616

884,531

8.	SECURED DEBTS

HSBC UK Bank PLC hold a fixed and floating charge over cash deposits.

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Richard Smedley (Senior Statutory Auditor)

for and on behalf of Richard Smedley Limited

10.	POST BALANCE SHEET EVENTS

On 19th February 2025, the Company issued one £1 ordinary share for a cost of £750,000.

11.	ULTIMATE CONTROLLING PARTY

The immediate parent undertaking is SolarEdge Technologies Inc. a company incorporated in the United States of America.

This is the smallest & largest group into which the Company's financial statements are consolidated. Copies of these consolidated group financial statements may be obtained from the following address: SolarEdge Technologies Inc., 47505, Seabridge Drive, Fremont, CA, 94538, United States of America.

12.	SHARE-BASED PAYMENT TRANSACTIONS

The Company's ultimate parent company granted and continues to grant an Restricted Stock Units (RSU).The RSUs are exercisable at a variable per share at staged intervals.