Knowledge Transmission Ltd - Period Ending 2014-12-31

Registration number: 07466937

Knowledge Transmission Ltd

Unaudited Abbreviated Accounts

for the Year Ended 31 December 2014
 

Knowledge Transmission Ltd
Contents

Abbreviated Balance Sheet 1

Notes to the Abbreviated Accounts 2 to 3

Knowledge Transmission Ltd
(Registration number: 07466937)
Abbreviated Balance Sheet at 31 December 2014

		Note			2014 £			2013 £
Fixed assets
Intangible fixed assets					233,636			15,700
Tangible fixed assets					11,685			7,540
					245,321			23,240
Current assets
Debtors					194,822			78,232
Cash at bank and in hand					115,718			50,784
					310,540			129,016
Creditors: Amounts falling due within one year					(677,203)			(94,291)
Net current (liabilities)/assets					(366,663)			34,725
Net (liabilities)/assets					(121,342)			57,965
Capital and reserves
Called up share capital		3			5			4
Share premium account					826,261			532,208
Profit and loss account					(947,608)			(474,247)
Shareholders' (deficit)/funds					(121,342)			57,965

For the year ending 31 December 2014 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime .

Approved by the Board on 27 March 2015 and signed on its behalf by:

Mr Samuel George Ezra Loose
Director

The notes on pages 2 to 3 form an integral part of these financial statements.
Page 1

Knowledge Transmission Ltd
Notes to the Abbreviated Accounts for the Year Ended 31 December 2014
......... continued

1	Accounting policies

Basis of preparation

The full financial statements, from which these abbreviated accounts have been extracted, have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (Effective April 2008).

Going concern

The financial statements have been prepared on a going concern basis. During the year the company raised capital investment to fund its continuing business developement activities and it has plans to raise additional capital when required. There is deferred income of £250,000 within creditors due within one year which is not repayable and is an advance against future sales. It is expected that it will be credited to sales during the course of the next two years as earned. The company has also received loans totalling £350,000 which are included in creditors due within one year. The directors believe the company will have generated sufficient profits or raised additional capital investment in order to repay these amounts as they fall due. Furthermore the balance sheet does not reflect the value of the intellectual property which is embeded within the company's software platform which, in the opinion of the directors, is significantly higher than the deficit shown on the balance sheet.

Turnover

Turnover represents amounts chargeable to customers, net of value added tax, in respect of the sale of goods and services to customers. Amounts that are receivable and dependent on the company meeting agreed milestones are credited to sales when the milestones have been achieved. Where amounts received from customers represent advances against future sales, the amounts are carried forward and credited to sales in the accounting period when earned.

Amortisation

Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:

Asset class	Amortisation method and rate
Intellectual property	10% straight line
Product development costs	Estimated future sales of products

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class	Depreciation method and rate
Office equipment	25% straight line

Research and development

Product development expenditure incurred on an individual project is carried forward when its future recoverability can reasonably be regarded as assured. Any expenditure carried forward is amortised in line with the expected future sales from the related project.

Foreign currency

Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. All exchange differences are included in the profit and loss account.

Page 2

Knowledge Transmission Ltd
Notes to the Abbreviated Accounts for the Year Ended 31 December 2014
......... continued

Hire purchase and leasing

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account.

2	Fixed assets

		Intangible assets £			Tangible assets £			Total £
Cost
At 1 January 2014		19,624			11,857			31,481
Additions		219,901			7,567			227,468
At 31 December 2014		239,525			19,424			258,949
Depreciation
At 1 January 2014		3,924			4,317			8,241
Charge for the year		1,965			3,422			5,387
At 31 December 2014		5,889			7,739			13,628
Net book value
At 31 December 2014		233,636			11,685			245,321
At 31 December 2013		15,700			7,540			23,240

3	Share capital

Allotted, called up and fully paid shares

	2014						2013
		No.			£			No.			£
Ordinary shares of 0.0001 each		49,814			5			40,729			4

New shares allotted

During the year 9,085 having an aggregate nominal value of £1 were allotted for an aggregate consideration of £294,053.

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