Finimize Limited - Period Ending 2019-08-31

Registration number: 10328011

Finimize Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 August 2019

Finimize Limited

Contents

Balance Sheet	1
Statement of Changes in Equity	2
Notes to the Financial Statements	3 to 6

Finimize Limited

(Registration number: 10328011)
Balance Sheet as at 31 August 2019

	Note	2019 £	2018 £
Fixed assets
Tangible assets	4	20,176	13,468
Current assets
Debtors	5	18,961	24,966
Cash at bank and in hand		861,433	964,597
		880,394	989,563
Creditors: Amounts falling due within one year	6	(43,977)	(22,465)
Net current assets		836,417	967,098
Net assets		856,593	980,566
Capital and reserves
Called up share capital		350	350
Share premium reserve		1,949,818	1,949,818
Advanced share subscription reserve		954,690	-
Profit and loss account		(2,048,265)	(969,602)
Total equity		856,593	980,566

For the financial year ending 31 August 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 4 May 2020 and signed on its behalf by:
 

Mr Maximilian Sassan Rofagha Director

The notes on pages 3 to 6 form an integral part of these financial statements.

Page 1

Finimize Limited

Statement of Changes in Equity for the Year Ended 31 August 2019

	Share capital £	Share premium £	Advanced share subscription reserve £	Profit and loss account £	Total £
At 1 September 2018	350	1,949,818	-	(969,602)	980,566
Loss for the year	-	-	-	(1,078,663)	(1,078,663)
Total comprehensive income	-	-	-	(1,078,663)	(1,078,663)
Share based payment transactions	-	-	954,690	-	954,690
At 31 August 2019	350	1,949,818	954,690	(2,048,265)	856,593

	Share capital £	Share premium £	Profit and loss account £	Total £
At 1 September 2017	164	1,949,818	(347,270)	1,602,712
Loss for the year	-	-	(622,332)	(622,332)
Total comprehensive income	-	-	(622,332)	(622,332)
New share capital subscribed	186	-	-	186
At 31 August 2018	350	1,949,818	(969,602)	980,566

The notes on pages 3 to 6 form an integral part of these financial statements.

Page 2

Finimize Limited

Notes to the Financial Statements for the Year Ended 31 August 2019

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Ashfords LLP
1 New Fetter Lane
London
EC4A 1AN

These financial statements were authorised for issue by the Board on 4 May 2020.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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 taxable income.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

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

Page 3

Finimize Limited

Notes to the Financial Statements for the Year Ended 31 August 2019

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 15 (2018 - 9).

Page 4

Finimize Limited

Notes to the Financial Statements for the Year Ended 31 August 2019

4	Tangible assets

	Office equipment £	Total £
Cost or valuation
At 1 September 2018	18,198	18,198
Additions	15,012	15,012
At 31 August 2019	33,210	33,210
Depreciation
At 1 September 2018	4,731	4,731
Charge for the year	8,303	8,303
At 31 August 2019	13,034	13,034
Carrying amount
At 31 August 2019	20,176	20,176
At 31 August 2018	13,468	13,468

5

Debtors

	2019 £	2018 £
Trade debtors	6,919	21,543
Other debtors	12,042	3,423
	18,961	24,966

Page 5

Finimize Limited

Notes to the Financial Statements for the Year Ended 31 August 2019

6

Creditors

Creditors: amounts falling due within one year

	2019 £	2018 £
Due within one year
Trade creditors	35,970	9,607
Taxation and social security	-	11,810
Accruals and deferred income	5,679	-
Other creditors	2,328	1,048
	43,977	22,465

Advanced share subscription reserve

During the year the company has entered into two rounds of funding by way of Advanced Subscription Agreements as set out below:

Subscribers - the company raised £835,000 from a funding round starting on 3 May 2019 under an Advanced Subscription Agreement. The funds must be converted to shares by a longstop date 36 months from the advanced subscription or if there is are further financing rounds which raises over £2,500,000 before the longstop date, if there is a sale of 50% or more of the entire issued share capital or an asset sale, or if the company becomes insolvent. Interest shall accrue on the Advanced Subscription Funds at a rate of 8% per annum and the interest used to purchase additional shares under this agreement. At 31 August 2019 the amount of accrued interest amounted to £19,690. The ultimate subscription price at the longstop date will be £3.03. If the shares are issued by virtue of a financing round, the price the price paid per share by the new investors subject to a discount (the “Discount”) which will be 20%. If the shares are issued by way of a sale of 50% or more of the issued share capital or an asset sale, the price will be the lowest price paid for any of the Company’s shares subject to the Discount, or in the case of an asset sale, a price per share calculated by dividing the proceeds of such an asset sale distributable to the shareholders by the number of shares comprising the fully diluted share capital of the Company and then applying the Discount.

EIS subscribers - the company raised £100,000 from a funding round in July 2019 under an Advanced Subscription Agreement. The funds must be converted to shares by a longstop date of 30 June 2020 or if there is are further financing rounds which raises over £100,000 before the longstop date, if there is a sale of 50% or more of the entire issued share capital or an asset sale, or if the company becomes insolvent. The ultimate subscription price at the longstop date will be £3.03. If the shares are issued by virtue of a financing round, the price the price paid per share by the new investors subject to a discount (the “Discount”) which will be 20% plus N (where N equals (i) 2.7% multiplied by (ii) the number of days that has elapsed between 1 July 2019 and the date the application of funds takes place dividend by 365. If the shares are issued by way of a sale of 50% or more of the issued share capital or an asset sale, the price will be the lowest price paid for any of the Company’s shares subject to the Discount, or in the case of an asset sale, a price per share calculated by dividing the proceeds of such an asset sale distributable to the shareholders by the number of shares comprising the fully diluted share capital of the Company and then applying the Discount.
 

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