Q-Bot Limited - Period Ending 2020-03-31

Registration number: 07972299

Prepared for the registrar

Q-Bot Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2020

Q-Bot Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 12

Q-Bot Limited

Company Information

Directors

P R N Childs M L Holloway I P Iliev T B Lipinski S Murdoch

Registered office

Block G Riverside Business Centre Bendon Valley Wandsworth SW18 4UQ

Accountants

Hazlewoods LLP Staverton Court Staverton Cheltenham Gloucestershire GL51 0UX

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Q-Bot Limited

(Registration number: 07972299)
Balance Sheet as at 31 March 2020

	Note	2020  £	2019  £
Fixed assets
Intangible assets	4	2,274,008	1,672,047
Tangible assets	5	350,982	170,990
		2,624,990	1,843,037
Current assets
Debtors	6	1,157,326	1,136,403
Cash at bank and in hand		976,638	410,098
		2,133,964	1,546,501
Creditors: Amounts falling due within one year	7	(543,065)	(608,755)
Net current assets		1,590,899	937,746
Total assets less current liabilities		4,215,889	2,780,783
Creditors: Amounts falling due after more than one year	7	(100,314)	(140,750)
Provisions	9	(21,019)	(18,026)
Deferred tax liabilities	10	-	(129,807)
Net assets		4,094,556	2,492,200
Capital and reserves
Called up share capital	11	269	210
Share premium reserve		4,500,399	1,972,340
Profit and loss account		(406,112)	519,650
Total equity		4,094,556	2,492,200

For the financial year ending 31 March 2020 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 18 August 2020 and signed on its behalf by:
 

T B Lipinski Director

The notes on pages 3 to 12 form an integral part of these financial statements.
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Q-Bot Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

1

General information

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

The address of its registered office and the principal place of business is:
Block G
Riverside Business Centre
Bendon Valley
Wandsworth
SW18 4UQ

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 for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

With relation to the COVID-19 outbreak, the directors have prepared forecasts on its potential impact. Although the company is experiencing reduced activity levels as a result, the directors have taken appropriate action to reduce direct costs and overheads in line with the reduced activity levels. Assuming the government support continues for the duration of the lockdown the directors have prepared the financial statements on a going concern basis but acknowledge that it is inherently difficult to accurately forecast the effect COVID-19 will have on the company in the next 12 months.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

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Q-Bot Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

Key sources of estimation uncertainty

Historically, the company issued shares to employees and members of its advisory panel constituting share based payments. FRS 102 requires the company to recognise the fair value of the equity instruments as an additional cost. The fair value of the shares issued has been derived using the entity-specific observable market data. The total additional cost recognised in the profit and loss in respect of these share based payments is £172,386. There are no other key sources of estimation identified by management other than those detailed in these accounting policies.

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.

Government grants

Government grants are recognised in the financial statements when it is reasonable to expect that the grants will be received, usually on submission of a valid claim for payment.

Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Grants of a revenue nature are recognised as other income when the performance condition of the grant have been met. Grants received before the conditions have been satisfied are recognised as a liability.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge 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.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet 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 assets under construction, over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
R&D equipment	20 - 50% straight line
Plant and machinery	20 - 50% straight line
IT and office equipment	20 - 50% straight line
Motor vehicles	20% straight line

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Q-Bot Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

Development costs

Development costs are expensed in the period in which they are incurred, unless they meet the criteria of internally generated intangible assets. Development costs which have met the criteria of internally generated intangible assets have been capitalised and are stated in the balance sheet at cost, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Amortisation starts when the assets are available for use and is applied over their estimated useful life as follows:

Asset class	Amortisation method and rate
Development costs	straight line over 5 years

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Trade debtors

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

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. 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 debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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 all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Share based payments

The company operates an equity-settled, share-based compensation plan, under which the entity receives services from employees and members of its advisory panel as consideration for equity instruments (options) of the entity. The fair value of the services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated based on an estimate of market value of the option specific to the company, which takes into account the liquidity of the shares and risk profile of the company. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.

The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.

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Q-Bot Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

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.

Financial instruments

Classification
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 on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

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Q-Bot Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term, unless there is reasonable certainty that ownership will pass in which case these assets are depreciated over their useful lives. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Leases in which all of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight line basis over the
period of the lease.

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.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

	2020  No.	2019  No.
Average number of employees	42	34

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Q-Bot Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

4

Intangible assets

	Development costs  £
Cost
At 1 April 2019	1,919,925
Additions	1,093,066
At 31 March 2020	3,012,991
Amortisation
At 1 April 2019	247,878
Amortisation charge	230,269
Impairment	260,836
At 31 March 2020	738,983
Carrying amount
At 31 March 2020	2,274,008
At 31 March 2019	1,672,047

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Q-Bot Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

5

Tangible assets

	R&D equipment  £	Plant and machinery  £	IT and office equipment  £	Motor vehicles  £	Assets under construction £	Total £
Cost
At 1 April 2019	123,042	78,057	75,545	95,062	-	371,706
Additions	82,570	46,086	39,846	125,576	19,965	314,043
At 31 March 2020	205,612	124,143	115,391	220,638	19,965	685,749
Depreciation
At 1 April 2019	46,988	76,563	36,488	40,677	-	200,716
Charge for the year	69,399	9,125	20,436	35,091	-	134,051
At 31 March 2020	116,387	85,688	56,924	75,768	-	334,767
Carrying amount
At 31 March 2020	89,225	38,455	58,467	144,870	19,965	350,982
At 31 March 2019	76,054	1,494	39,057	54,385	-	170,990

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Q-Bot Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

6

Debtors

	Note	2020  £	2019  £
Trade debtors		685,131	337,117
Other debtors		442,943	715,509
Prepayments		29,252	21,217
Corporation tax asset		-	62,560
		1,157,326	1,136,403

Included in the other debtors above is £130,595 in respect of 2020 R&D tax credits and £131,602 in respect of R&D tax credits brought forward from prior periods.

7

Creditors

	Note	2020  £	2019  £
Due within one year
Loans and borrowings	8	164,989	176,795
Trade creditors		181,568	236,112
Social security and other taxes		58,804	47,880
Outstanding defined contribution pension costs		9,842	4,376
Other creditors		77,929	121,269
Accrued expenses		49,933	22,323
		543,065	608,755

	Note	2020 £	2019 £
Due after one year
Loans and borrowings	8	100,314	140,750

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Q-Bot Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

8

Loans and borrowings

	2020 £	2019 £
Current loans and borrowings
Finance lease liabilities	71,239	39,821
Other borrowings	93,750	136,974
	164,989	176,795

	2020 £	2019 £
Non-current loans and borrowings
Finance lease liabilities	100,314	47,000
Other borrowings	-	93,750
	100,314	140,750

Finance lease liabilities
Finance lease liabilities are secured against the assets to which they relate.

Other borrowings
Other borrowings are unsecured loan facilities.

9

Provisions

	Employee Benefits £	Total £
At 1 April 2019	18,026	18,026
Increase in existing provisions	2,993	2,993
At 31 March 2020	21,019	21,019

The provision for employee benefits relates to pro rated holiday not taken at the balance sheet date and is expected to be utilised within the next year.

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Q-Bot Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

10

Deferred tax

Deferred tax assets and liabilities

2020	Liability £
Fixed assets timing differences	(470,322)
Short term timing differences	79,368
Tax losses carry-forwards	390,954
	-

2019	Liability £
Fixed assets timing differences	281,878
Short term timing differences	(40,722)
Tax losses carry-forwards	(111,349)
	129,807

11

Share capital

Allotted, called up and fully paid shares

	2020		2019
	No.	£	No.	£
Ordinary shares of £0.01 each	26,940	269.40	20,993	209.93

New shares
During the year 5,947 Ordinary shares of £0.01 each having an aggregate nominal value of £59.47 were allotted for an aggregate consideration of £2,528,118.

12

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £nil (2019 - £55,342), of which £nil (2019 - £55,342) is due within one year.

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