ACCOUNTS - Final Accounts preparation

Company registration number: 13838925

	UNAUDITED FINANCIAL STATEMENTS
	FOR THE YEAR ENDED 31 DECEMBER 2024

	SONGBITS LIMITED


SONGBITS LIMITED

COMPANY INFORMATION

Directors	J Holgersson
	A P Moore
	J Sheffield
	R S J Sheffield
	C O O'Donnell (appointed 30 May 2024)


Registered number	13838925


Registered office	Level 3 207 Regent Street
	London
	W1B3HH


Accountants	Menzies LLP
	Chartered Accountants
	Richmond House
	Walkern Road
	Stevenage
	Herts
	SG1 3QP


SONGBITS LIMITED

CONTENTS

	Page
Statement of Financial Position	1 - 2
Notes to the Financial Statements	3 - 7


SONGBITS LIMITED REGISTERED NUMBER:13838925

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Tangible assets	3		2,437		4,422
			2,437		4,422
Current assets
Debtors: amounts falling due within one year	4	8,987		67,947
Bank and cash balances		60,855		100,711
		69,842		168,658
Creditors: amounts falling due within one year	5	(605,429)		(831,106)
Net current liabilities			(535,587)		(662,448)
Total assets less current liabilities			(533,150)		(658,026)

Net liabilities			(533,150)		(658,026)

Capital and reserves
Called up share capital	5,142	4,900
Share premium account	631,476	148,000
Profit and loss account	(1,169,768)	(810,926)
	(533,150)	(658,026)

Page 1


SONGBITS LIMITED REGISTERED NUMBER:13838925

STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 DECEMBER 2024

The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

................................................

R S J Sheffield

Director

Date: 28 September 2025

The notes on pages 3 to 7 form part of these financial statements.

Page 2


SONGBITS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.Accounting policies

1.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The following principal accounting policies have been applied:

1.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

1.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue 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 revenue can be measured reliably;

∙it is probable that 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; and

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

Page 3


SONGBITS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.Accounting policies (continued)

1.4

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

1.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

				Office equipment	-	33%
				Computer equipment	-	33%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 4


SONGBITS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.Accounting policies (continued)

1.6

Going concern

The financial statements have been prepared on a going concern basis. The directors have assessed the company’s ability to continue as a going concern and are satisfied that it is appropriate to prepare the accounts on this basis.
In making this assessment, the directors have considered the company’s current financial position, forecast cash flows, and the availability of funding. The company is currently undertaking an active equity fundraising process, which is progressing positively. Discussions with potential investors are ongoing, and the directors are confident that sufficient funds will be secured to support the company’s operations for at least the next 12 months from the date of approval of these financial statements.
The directors have also prepared detailed cash flow forecasts and considered various scenarios, including downside cases. These forecasts demonstrate that the company will have adequate resources to meet its liabilities as they fall due, assuming successful completion of the fundraising.
While the fundraising is not yet complete, the directors believe that the company has access to sufficient sources of finance and contingency plans to manage any short-term liquidity risks. Accordingly, they do not consider there to be any material uncertainties that cast significant doubt on the company’s ability to continue as a going concern.

1.7

Financial instruments

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Employees

The average monthly number of employees, including directors, during the year was 5 (2023 - 3).

Page 5


SONGBITS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

3.	Tangible fixed assets

	Office equipment	Computer equipment	Total
	£	£	£
Cost or valuation
At 1 January 2024	704	5,250	5,954
At 31 December 2024	704	5,250	5,954
Depreciation
At 1 January 2024	215	1,317	1,532
Charge for the year on owned assets	235	1,750	1,985
At 31 December 2024	450	3,067	3,517
Net book value
At 31 December 2024	254	2,183	2,437
At 31 December 2023	489	3,933	4,422

Debtors

					2024	2023
					£	£


Trade debtors	-	56
Other debtors	8,502	10,575
Prepayments and accrued income	485	1,250
Tax recoverable	-	56,066
	8,987	67,947

5.	Creditors: Amounts falling due within one year
		2024	2023
		£	£

Other loans	-	662,305
Trade creditors	97,418	127,245
Other creditors	212,411	56
Accruals and deferred income	295,600	41,500
	605,429	831,106

Page 6


SONGBITS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

6.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

504,186 (2023 - 480,000) Ordinary shares of £0.01 each	5,042	4,800
10,000 (2023 - 10,000) Ordinary 1 shares of £0.01 each	100	100

	5,142	4,900

During the year the company issued 24,186 Ordinary £0.01 shares at nominal value. All 24,186 shares were issued at a premium of £19.99 per share.

Related party transactions

At the reporting date the company owed £60,900 to the directors. The balance can be found within creditors due within one year and no interest is being charged on this.
At the reporting date the company owed £256,000 to related parties. The balance can be found within creditors due within one year and no interest is being charged on this.
Transactions between related parties (Operando Innovation Limited, Amerdale IT Limited, Merlin Consultancy and The Mobile Marketing Store) were carried out at market value.

Page 7