Cambridge GaN Devices Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 10430656 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

FOR

CAMBRIDGE GAN DEVICES LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

G Longobardi

Parkwalk Advisers Limited

P R Hutton

A Dobree

REGISTERED OFFICE:

Deanland House

160 Cowley Road

CAMBRIDGE

Cambridgeshire

CB4 0DL

REGISTERED NUMBER:

10430656 (England and Wales)

AUDITORS:

Staffords

Chartered Accountants

& Statutory Auditors

Unit 1, Cambridge House

Camboro Business Park

Oakington Road, Girton

CAMBRIDGE

Cambridgeshire

CB3 0QH

FIXED ASSETS

Tangible assets

4

44,484

29,245

CURRENT ASSETS

Debtors

5

317,417

137,468

Cash at bank

733,881

1,770,864

1,051,298

1,908,332

CREDITORS

Amounts falling due within one year

6

152,100

51,004

NET CURRENT ASSETS

899,198

1,857,328

TOTAL ASSETS LESS CURRENT LIABILITIES

943,682

1,886,573

CAPITAL AND RESERVES

Called up share capital

8

235

235

Share premium

2,174,007

2,174,007

Retained earnings

(1,230,560

)

(287,669

)

SHAREHOLDERS' FUNDS

943,682

1,886,573

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

In accordance with Section 444 of the Companies Act 2006, the Profit and loss account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 22 December 2020 and were signed on its behalf by:

G Longobardi - Director

1.	STATUTORY INFORMATION

Cambridge GaN Devices Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

20% on cost

Computer equipment

-

33% on cost

Government grants

Government grants are recorded as Other Operating Income in the financial statements. If they relate to capital costs they are deferred and released through the Profit & Loss account in the periods in which the depreciation on those assets is accounted for. Any grants which have not been received by the year end date, but which relate to costs expensed through the Profit & Loss are accrued at the rate implicit in the grant to match the income from the grant with the costs in the same accounting period.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

The company carries on both research on which the policy must be that these costs are written off as incurred and development on which there is a choice as to write off or capitalisation. For the current period, all costs falling in either category are written off and the company policy will remain under review in subsequent years and adjusted and disclosed as necessary. At this time and with early stage research projects, the directors consider that the capitalisation of any relevant development costs would be immaterial to the company's financial position.

Where appropriate identified research and development costs will be claimed within the HM Revenue & Customs SME R&D tax refund scheme or the ATL RDEC scheme if the expenditure identified has been subsidised.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Payment of creditors

The average payment terms taken with those creditors that offer credit for the payment of their costs is 30 days with the policy of the company being that of payment by the end of the month following the month of the date of to the related purchase invoice.

Share premium account

As the Share Premium, generated by the investments received in excess of the share nominal value, has limited uses as part of the company accounts, it is the policy to utilise the ability writing off of the costs of fundraising against this balance for all historical and any future investments in the company's share capital.

Going concern

The company has, since the year end, continued negotiations with a group of investors to conclude a funding round in excess of £6.8M. Although this has not currently been completed at the point of signing the 2020 financial statements, we believe it is sufficiently complete such that, on the balance of probabilities, it likely to be completed in late 2020 or early 2021.

On this basis, we believe that it is appropriate that the financial statements should be drawn up on the assumption that it is a going concern.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 14 (2019 - 7 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

to

Plant and

Computer

property

machinery

equipment

Totals

£

£

£

£

COST

At 1 October 2019

-

24,676

7,560

32,236

Additions

1,973

21,036

1,994

25,003

At 30 September 2020

1,973

45,712

9,554

57,239

DEPRECIATION

At 1 October 2019

-

1,270

1,721

2,991

Charge for year

210

6,790

2,764

9,764

At 30 September 2020

210

8,060

4,485

12,755

NET BOOK VALUE

At 30 September 2020

1,763

37,652

5,069

44,484

At 30 September 2019

-

23,406

5,839

29,245

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

-

612

Other debtors

317,417

136,856

317,417

137,468

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

74,087

23,771

Other creditors

78,013

27,233

152,100

51,004

7.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2020

2019

£

£

Within one year

49,665

41,256

Between one and five years

75,638

-

125,303

41,256

Included in the above within one year figure is £8,408 for a short term rental lease arrangement that has been disclosed assuming it continues for 1 full accounting year from the Balance Sheet date.

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid

Number

Class

Nominal Value

2020

2019

£

£

23,485

Ordinary

1p

235

235

During the year 740 EMI share options were granted with an exercise price of £36. A further 950 unapproved share options were granted; 60 with an exercise price of £18 and 890 with an exercise price of £36.

At the year end the total share options granted were 1,908 EMI options and 950 unapproved options.

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

We draw your attention to the specific basis of preparation of these accounts as referred to in Note 1 - Accounting Policies and the Post Balance Sheet Events note, towards the end of these financial statements..

The company is reliant on external investment in order to remain a going concern for a period of not less than twelve months from the Balance Sheet date. We draw your attention to this, but our report is not qualified in this respect.

Steven Ellis MA FCA (Senior Statutory Auditor)

for and on behalf of Staffords

10.	RELATED PARTY DISCLOSURES

The following disclosures relate to those related parties with whom the company had transactions in either the current or prior reporting period. It is not an exhaustive list of all potential related parties, only those which require disclosure because of activity between the company and related party mentioned.

Flusso Limited

A company in which Florin Udrea is a director and 3 of the shareholders of the company are also shareholders in Flusso Limited.

During the year, the company incurred costs net of VAT of £20,284 (2019: £NIL) plus £15,826 (2019: £NIL) of accrued costs from Flusso Limited. At the year end £23,090 (2019: £NIL) in invoiced costs was owed to Flusso Limited.

During the year, the company made sales net of VAT of £4,169 (2019: £1,697) to Flusso Limited plus £2,835 (2019: £NIL) of accrued sales to Flusso Limited. At the year end £NIL (2019: £612) in invoiced sales was due from Flusso Limited.

Cambridge University Technical Services Limited (CUTS)

A company which engages Florin Udrea (a director in the prior period) to provide specialist technical consultancy support.

During the year, the company incurred costs of £15,000 (2019: £15,000) from CUTS. Nothing was owed to CUTS at the year end date.

Cambridge Enterprise Limited (CEL)

A company which employs or employed both Tania Villares-Balsa and Anne Dobree and were / are nominated investor representative directors of the company.

During the year, the company incurred costs net of VAT of £13,563 (2019: £NIL) from CEL. Nothing was owed to CEL at the year end date.

11.	POST BALANCE SHEET EVENTS

The company is currently in the process of closing an investment round. This will not be concluded until after the completion and sign off of the audit for the financial year ended 30 September 2020. The investment round is therefore a non-adjusting post balance sheet event and is mentioned solely to substantiate the Report of the Directors and the Emphasis of Matter in the Report of the Auditors.

The likely total investment has not currently been fixed, but the expectation at the time of signing these accounts is for in excess of £6.8M in funding being received either in December 2020 or early 2021.

12.	ULTIMATE CONTROLLING PARTY

As at the balance sheet date there is no single ultimate controlling party.