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Registered number: 10989365
GREY WOLF THERAPEUTICS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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GREY WOLF THERAPEUTICS LIMITED
CONTENTS
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Notes to the financial statements
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GREY WOLF THERAPEUTICS LIMITED
COMPANY INFORMATION
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Clarendon Business Centre
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Blick Rothenberg Audit LLP
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Chartered Accountants & Statutory Auditor
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REGISTERED NUMBER:10989365
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GREY WOLF THERAPEUTICS LIMITED
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BALANCE SHEET
AS AT 31 DECEMBER 2020
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Capital redemption reserve
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime within Part 15 of the Companies Act 2006 and in accordance with Section 1A of Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies' regime. The profit and loss account and directors' report have not been filed.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................
Dr P Joyce
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The notes on pages 3 to 10 form part of these financial statements.
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GREY WOLF THERAPEUTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Grey Wolf Therapeutics Limited is a private company limited by shares incorporated in England and Wales. The address of its registered office is Clarendon Business Centre, 57 Woodstock Road, Oxford, England, OX2 6HJ.
The financial statements are presented in Sterling (£).
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The company had a retained loss of £4,508,762 for the year ended 31 December 2020. The company is currently in its research phase and is operating in line with its business plan. The company has funding in place to continue with its business plan and the directors support preparing the accounts of the company on the going concern basis.
The directors recognise that the COVID-19 pandemic presents ongoing challenging circumstances and a high degree of uncertainty for the coming months.
Disruption caused by the COVID-19 pandemic may cause some delay to scientific progress and may require re-prioritisation of resources. The directors have prepared further budgets and cashflow forecasts with a worst-case scenario based on contractually committed expenditure. In this scenario the company is expected to have sufficient cash reserves to sustain the company for more than 12 months from the date the financial statements are approved. Given that the company has operated in the COVID-19 pandemic, which was present for the majority of the financial year, and has not suffered large disruptions, the directors foresee these measures to be adequate.
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Foreign currency translation
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Functional and presentation currency
The company's functional and presentational currency is Sterling (£).
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.
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GREY WOLF THERAPEUTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research is recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
The company is currently in the research phase of its project and all such expenditure has been recognised in the Profit and loss account.
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Interest receivable and similar income
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Interest income is recognised in profit or loss using the effective interest method.
Defined contribution pension plan
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds.
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.
Where equity instruments are granted to persons other than employees, the Statement of comprehensive income is charged with fair value of goods and services received.
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GREY WOLF THERAPEUTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
The tax expense for the year comprises current tax. Tax is recognised in the profit and loss account, 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.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.
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.
The estimated useful lives range as follows:
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.
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.
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GREY WOLF THERAPEUTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
The company’s policies for its major classes of financial assets and financial liabilities are set out below.
Financial assets
Basic financial assets, including other debtors and cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other creditors, are initially recognised 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 a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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GREY WOLF THERAPEUTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
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Financial instruments (continued)
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Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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The average monthly number of employees, including directors, during the year was 6 (2019 - 5).
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GREY WOLF THERAPEUTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Called up share capital not paid
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Prepayments and accrued income
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On 20 November 2020, 1,595,245 £0.0001 Series A3 Preferred shares were issued at a total premium of £6,629,838 and fully paid up in January 2021.
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GREY WOLF THERAPEUTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Allotted, called up and fully paid
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1,514,638 (2019 - 1,447,202) Ordinary shares of £0.0001 each
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Nil (2019 - 3,597,122) Series A Preferred shares of £0.0001 each
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3,597,122 (2019 - nil) Series A1 Preferred shares of £0.0001 each
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691,755 (2019 - nil) Series A2 Preferred shares of £0.0001 each
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1,595,245 (2019 - nil) Series A3 Preferred shares of £0.0001 each
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On 8 January 2020, 3,595 £0.0001 Ordinary (Subscription) shares were repurchased and cancelled by the company.
On 8 January 2020, the Series A Preferred shares were re-designated into Series A1 Preferred shares.
On 4 March 2020, 75,066 £0.0001 Ordinary (Subscription) shares were issued at a total premium of £2,244 and were fully paid up
On 9 June 2020, 5,916 £0.0001 Ordinary (Subscription) shares were issued at a total premium of £177 and were fully paid up.
On 16 June 2020, 9,951 £0.0001 Ordinary (Subscription) shares were re-designated into Ordinary (Deferred) shares and were repurchased and cancelled by the company.
On 13 January 2020, 691,755 £0.0001 Series A2 Preferred shares were issued at a total premium of £2,499,933 and fully paid up.
On 20 November 2020, 1,595,245 £0.0001 Series A3 Preferred shares were issued at a total premium of £6,629,838 and fully paid up in January 2021.
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GREY WOLF THERAPEUTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £2,070 (2019: £548). Contributions totalling £511 (2019: £1,023) were payable to the fund at the balance sheet date and are included in creditors.
9.Other financial commitments
As at the balance sheet date, the company had commitments totalling £3,307,006 relating to the uninvoiced cost of future research activities contractually agreed with suppliers.
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Related party transactions
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During the year, the company paid expenses on behalf of a director of £nil (2019: £102) and made payments of £nil (2019: £3,089) to a director. A director paid expenses of £nil (2019: £2,913) on behalf of the company during the year. At the year end, the company owed a director £nil (2019: £nil).
During the year, the company paid expenses on behalf of a director of £nil (2019: £41) and made payments of £nil (2019: £33,771) to a director. A director paid expenses of £nil (2019: £33,812) on behalf of the company during the year. At the year end, the company owed the director £nil (2019: £nil).
During the year, a company with a common director paid expenses on behalf of the company totalling £nil (2019: £620), of which £nil (2019: £377) were reimbursed during the year. The company paid expenses on behalf of the company with a common director totalling £nil (2019: £385) and received payments of £nil (2019: £142) from the company with a common director. The company with a common director invoiced the company £794,941 (2019: £642,788) for services provided and the company paid invoices from the company with a common director totalling £722,654 (2019: £661,280) during the year. At the year end, the company owed a company with a common director £72,287 (2019: £nil).
During the year, the company paid expenses on behalf of the company with a common director totalling £nil (2019: £3,450) and received payments of £nil (2019: £3,450) from the company with a common director. The company with a common director invoiced the company £1,174 (2019: £357) for services provided and the company paid invoices from the company with a common director totalling £501 (2019: £357) during the year. The company invoiced the company with a common director £2,798 for services provided and the company with a common director paid invoices from the company totalling £2,125 during the year. At the year end, the company owed a company with a common director £nil (2019: £nil).
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Post balance sheet events
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Post year end, on 5 January 2021, 8,412 £0.0001 Ordinary (Deferred) shares were purchased by the company for £0.01 and immediately cancelled.
The auditor's report on the company's full financial statements was unqualified. Those financial statements were audited by Blick Rothenberg Audit LLP and the auditor's report thereon was signed by Darsh Shah (senior statutory auditor).
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