Finafrik Ltd

	Page
Statement of Financial Position	1—2
Notes to the Financial Statements	3—6

1. General Information

Finafrik Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 12992524 . The registered office is 156a Burnt Oak Broadway, Edgware, Middlesex, HA8 0AX.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention and in accordance with the FRS 102 Section 1A Small Entities - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006. The financial statements are prepared in Sterling, although the functional currency of the entity is the Euro.

Under the provision of section 399 of the Companies Act 2006 the Company is exempt from preparing consolidated accounts and has not done so, therefore the accounts show information about the company as an individual entity.

2.2. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

License fees

The company recognises revenue for sales-based license fees, provided in exchange for a licence to use the company's fintech software.

Revenue from license fees is recognised in accordance with the substance of the relevant agreement. License fees are recognised on an accruals basis as the underlying performance occurs, provided the amount of revenue can be measured reliably, and it is probable that the economic benefits associated with the transaction will flow to the company.

Where royalties are based on future performance or usage, revenue is recognised only when the performance obligations are met and the amount can be reasonably estimated. Any amounts received in advance of performance are deferred and recognised as revenue in the period when the related performance occurs.

2.3. Research and Development

Expenditures on research or on the research phase of an internal project are recognised as an expense when incurred. The intangible assets arising from the development phase of an internal project are recognised if, and only if, the following conditions apply:

it is technically feasible to complete the asset for use
the company has the intention of completing the asset for either use or resale
the company has the ability to either use or sell the asset
it is possible to estimate how the asset will generate income
the company has adequate financial, technical and other resources to develop and use the asset; and
the expenditure incurred to develop the asset is measurable.

If no intangible asset can be recognised based on the above, then development costs are recognised in profit and loss in the period in which they are incurred.

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Finafrik Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.4. Intangible Fixed Assets and Amortisation - Intellectual Property

Intangible assets are amortised from the date they are available for use. Amortisation is charged to profit or loss on a straight-line basis over the estimated useful lives of the intangible assets, unless such lives are indefinite. These charges are included in other expenses in profit or loss. Amortisation periods and methods are reviewed annually and adjusted if appropriate. The useful lives of intangible assets have yet to be ascertained by the Directors. Intellectual property has not been amortised in this accounting period.

Intangible assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Where the carrying value of an asset exceeds its recoverable amount (i.e. the higher of value in use and fair value less costs to sell), the asset is written down accordingly.

Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the smallest group of assets to which it belongs for which there are separately identifiable cash flows; its cash generating units ('CGUs').

Impairment charges are included in profit or loss, except to the extent they reverse gains previously recognised in other comprehensive income.

2.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Computer Equipment

20% reducing balance

2.6. Financial Instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans from third parties.

2.7. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

2.8. Taxation

The tax expense represents the sum of the corporation tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other year and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and asset reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

2.9. Basic financial assets

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and where material are subsequently measured at amortised cost using the effective interest method, less any impairment.

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Finafrik Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.10. Basic financial liabilities

Basic financial liabilities, including trade and other payables and loans from company undertakings that are classified as debt are initially measured 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 the market rate of interest.

2.11. Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short term liquid investments with original maturities of three months or less.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 2 (2023: 2)

4. Intangible Assets

	Intellectual Property
	£
Cost
As at 1 January 2024	678,088
Additions	119,136

As at 31 December 2024	797,224

Net Book Value
As at 31 December 2024	797,224

As at 1 January 2024	678,088

Intellectual property assets pertain to the purchase of a copy of certain fintech software from Maviance GmbH (a company incorporated and registered in Germany), ownership in the associated intellectual property rights and the enhancement of the said software and system infrastructure.

5. Tangible Assets

	Computer Equipment
	£
Cost
As at 1 January 2024	2,507

As at 31 December 2024	2,507

Depreciation
As at 1 January 2024	993
Provided during the period	303

As at 31 December 2024	1,296

Net Book Value
As at 31 December 2024	1,211

As at 1 January 2024	1,514

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Finafrik Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

6. Investments in subsidiaries

	Unlisted
	£
Cost
As at 1 January 2024	1,323,229

As at 31 December 2024	1,323,229

Provision
As at 1 January 2024	-

As at 31 December 2024	-

Net Book Value
As at 31 December 2024	1,323,229

As at 1 January 2024	1,323,229

Investments in subsidiaries comprise a shareholding in Maviance PLC, a company incorporated in the Republic of Cameroon, trading in the provision of digital financial services and fintech consulting. The company owns 100% of the subsidiary's issued share capital.

Investments in subsidiaries are shown at cost less impairment.

7. Debtors

	2024	2023
	£	£
Due within one year
Prepayments and accrued income	84,537	64,916
VAT	4,099	1,941

	88,636	66,857

Accrued income relates to License fees.

8. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Trade creditors	12,147	3,030
Other creditors	41,651	45,478
Accruals and deferred income	5,800	5,700
Directors' loan accounts	13	13

	59,611	54,221

9. Share Capital

	2024	2023
Allotted, called up and fully paid	£	£
1,419,810 Ordinary Shares of £ 0.00084096 each	1,194	1,194

Preference Shares

	2024	2023
Allotted, called up and fully paid	£	£
552,865 Preference Shares of £ 0.00084096 each	465	465

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		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		797,224		678,088
Tangible Assets	5		1,211		1,514
Investments in subsidiaries	6		1,323,229		1,323,229

			2,121,664		2,002,831
CURRENT ASSETS
Debtors	7	88,636		66,857
Cash at bank and in hand		75,670		149,209

		164,306		216,066
Creditors: Amounts Falling Due Within One Year	8	(59,611 )		(54,221 )

NET CURRENT ASSETS (LIABILITIES)			104,695		161,845

TOTAL ASSETS LESS CURRENT LIABILITIES			2,226,359		2,164,676

NET ASSETS			2,226,359		2,164,676

CAPITAL AND RESERVES
Called up share capital	9		1,659		1,659
Share premium account			2,160,807		2,160,807
Income Statement			63,893		2,210

SHAREHOLDERS' FUNDS			2,226,359		2,164,676