Firebolt Group Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03779385 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2021

FOR

FIREBOLT GROUP LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

E P E Ochtman

SECRETARY:

E P E Ochtman

REGISTERED OFFICE:

Unit 4L, Bramhall Moor Technology Park

Pepper Road

Hazel Grove

Stockport

Cheshire

SK7 5BW

REGISTERED NUMBER:

03779385 (England and Wales)

AUDITORS:

Richardson Jones

Chartered Accountants &

Registered Auditors

Mercury House

19-21 Chapel Street

Marlow

Buckinghamshire

SL7 3HN

FIXED ASSETS

Tangible assets

4

2,527

73,624

CURRENT ASSETS

Stocks

137,478

208,031

Debtors

5

2,120,275

2,455,541

Cash at bank

53,540

64,787

2,311,293

2,728,359

CREDITORS

Amounts falling due within one year

6

185,128

296,698

NET CURRENT ASSETS

2,126,165

2,431,661

TOTAL ASSETS LESS CURRENT LIABILITIES

2,128,692

2,505,285

CREDITORS

Amounts falling due after more than one year

7

(35,000

)

(94,682

)

PROVISIONS FOR LIABILITIES

8

-

(11,418

)

NET ASSETS

2,093,692

2,399,185

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

9

2,093,592

2,399,085

SHAREHOLDERS' FUNDS

2,093,692

2,399,185

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 Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 30th June 2022 and were signed by:

E P E Ochtman - Director

1.	STATUTORY INFORMATION

Firebolt Group 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.

2.	ACCOUNTING POLICIES

Compliance with accounting standards

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.

The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (UK Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).

COVID-19

At the date of approval of these financial statements the global health emergency, known as Coronavirus (Covid-19), which was classified as a pandemic by the World Health Organisation on 11 March 2020 due to its rapid transmission across the globe, continues to have a significant negative impact on global stock markets, currencies, and general business activities. The company and the group as a whole continue operate mostly unaffected to date, however, the full extent and timing of the impact of Covid-19 on the global economy, and the consequential knock-on effect on the company's future performance continues to remain unknown. However, as stated in the Directors Report, the company is well placed to overcome these challenges in the foreseeable future.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxed. Turnover is generally recognised on the delivery of the finished goods.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

25% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

33% on cost and 25% on cost

Computer equipment

-

33% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 8 (2020 - 8 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1st January 2021

16,188

36,653

122,200

20,539

195,580

Additions

-

-

-

933

933

Disposals

(16,188

)

(36,653

)

(122,200

)

(9,031

)

(184,072

)

At 31st December 2021

-

-

-

12,441

12,441

DEPRECIATION

At 1st January 2021

16,060

36,473

53,512

15,911

121,956

Charge for year

86

127

11,210

2,953

14,376

Eliminated on disposal

(16,146

)

(36,600

)

(64,722

)

(8,950

)

(126,418

)

At 31st December 2021

-

-

-

9,914

9,914

NET BOOK VALUE

At 31st December 2021

-

-

-

2,527

2,527

At 31st December 2020

128

180

68,688

4,628

73,624

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1st January 2021

121,005

Disposals

(121,005

)

At 31st December 2021

-

DEPRECIATION

At 1st January 2021

52,516

Charge for year

11,011

Eliminated on disposal

(63,527

)

At 31st December 2021

-

NET BOOK VALUE

At 31st December 2021

-

At 31st December 2020

68,489

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Trade debtors

60,588

134,439

Amounts owed by group undertakings

2,014,912

2,289,575

Security deposits

3,764

3,764

Tax

22,566

-

VAT

-

4,560

Prepayments

18,445

23,203

2,120,275

2,455,541

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Bank loans and overdrafts

10,000

5,000

Hire purchase contracts

-

25,034

Trade creditors

19,025

145,841

Tax

-

9,689

Social security and other taxes

21,429

18,547

Pension

-

1,567

VAT

5,230

-

Other creditors

131

117

Directors' current accounts

100

100

Accrued expenses

129,213

90,803

185,128

296,698

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.21

31.12.20

£

£

Bank loans - 1-2 years

10,000

20,000

Bank loans - 2-5 years

25,000

25,000

Hire purchase contracts

-

49,682

35,000

94,682

The bank loan represents an amount received under the Coronavirus Bounce Back Loan (BBL) scheme. This is a 100% government backed loan and there are no fees or interest payable for the first 12 months. The first 12 months interest will be paid by the UK government as a Business Interruption Payment. The loan term is 6 years.

8.	PROVISIONS FOR LIABILITIES

31.12.21

31.12.20

£

£

Deferred tax

-

11,418

Deferred

tax

£

Balance at 1st January 2021

11,418

Credit to Income Statement during year

(11,418

)

Balance at 31st December 2021

-

9.

RESERVES

Retained

earnings

£

At 1st January 2021

2,399,085

Deficit for the year

(305,493

)

At 31st December 2021

2,093,592

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

The Report of the Auditors was unqualified.

David Porter (Senior Statutory Auditor)

for and on behalf of Richardson Jones

11.	FINANCIAL COMMITMENTS

The company has provided security for borrowings undertaken by its parent, Firebolt Group Inc, in the form of a joint-guarantee, in favour of Flagstar Bank, FSB (of Troy, Michigan, USA), the lender. At the balance sheet date the parent owed the lender USD $7,013,073 (2020: $5,177,899), however, there is no evidence to suggest that the parent will not be able to honour its commitments in this respect.

12.	RELATED PARTY DISCLOSURES

- FIREBOLT GROUP INC.

A company based in the USA which owns 100% of the issued share capital.

At 31st December 2021, the company was owed £1,173,874 (2020: £1,254,192), by Firebolt Group Inc., in respect of an intercompany balance which is repayable on demand. This is included in Debtors.

- FIREBOLT TECHNOLOGIES INC.

A company based in Canada and a fellow subsidiary of Firebolt Group Inc.

At 31st December 2021, the company was owed £526,501 (2020: £526,501), by Firebolt Technologies Inc, in respect of an intercompany balance which is repayable on demand. This is included in Debtors.

- FIREBOLT ASIA LIMITED

A company based in China and a fellow subsidiary of Firebolt Group Inc.

At 31st December 2021, the company was owed £307,382 (2020: £508,882), by Firebolt Group Asia Limited, in respect of an intercompany balance which is repayable on demand. This is included in Debtors.

- FIREBOLT BRAND MATERIALS LIMITED

A company based in Ireland and a fellow subsidiary of Firebolt Group Inc.

At 31st December 2021, the company was owed £7,155 (2020: £nil), by Firebolt Brand Materials Limited, in respect of an intercompany balance which is repayable on demand. This is included in Debtors.

13.	ULTIMATE CONTROLLING PARTY

The immediate and ultimate controlling party is the director, by virtue of his controlling interest in the parent company, Firebolt Group Inc.

14.	ULTIMATE AND IMMEDIATE PARENT COMPANY

Firebolt Group, Inc. is the immediate and ultimate parent company. The financial statements of the ultimate parent company may be obtained by applying to the secretary at the registered office.