Company No: 09036363 (England and Wales)

Contents

• Company Information
• Accountant's Report
• Balance Sheet
• Notes to the Financial Statements

DIRECTORS	A J Horne
	R P Oliver

REGISTERED OFFICE	Carlton House
	19 West Street
	Epsom
	Surrey
	KT18 7RL
	United Kingdom

COMPANY NUMBER

09036363 (England and Wales)

ACCOUNTANT	Deloitte LLP
	1 New Street Square
	London
	EC4A 3HQ
	United Kingdom

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of I've Been Found Ltd for the financial year ended 30 September 2021 which comprise the Balance Sheet and the related notes 1 to 11 from the Company’s accounting records and from information and explanations you have given us.

We are subject to the ethical and other professional requirements of the Institute of Chartered Accountants in England and Wales (ICAEW) which are detailed at _http://www.icaew.com/en/members/regulations-standards-and-guidance_.

It is your duty to ensure that I've Been Found Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of I've Been Found Ltd. You consider that I've Been Found Ltd is exempt from the statutory audit requirement for the financial year.

We have not been instructed to carry out an audit or a review of the financial statements of I've Been Found Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

This report is made solely to the Board of Directors of I've Been Found Ltd, as a body, in accordance with the terms of our engagement letter dated 19 July 2019. Our work has been undertaken solely to prepare for your approval the financial statements of I've Been Found Ltd and state those matters that we have agreed to state to the Board of Directors of I've Been Found Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than I've Been Found Ltd and its Board of Directors as a body for our work or for this report.

Deloitte LLP
Accountant

1 New Street Square
London
EC4A 3HQ
United Kingdom

16 June 2022

	Note	2021		2020
		£		£
Fixed assets
Intangible assets	3	340,878		222,008
Tangible assets	4	3,133		3,580
		344,011		225,588
Current assets
Debtors	6	139,036		219,609
Cash at bank and in hand		1,139,099		571,631
		1,278,135		791,240
Creditors
Amounts falling due within one year	7	( 434,922)		( 653,680)
Net current assets		843,213		137,560
Total assets less current liabilities		1,187,224		363,148
Creditors
Amounts falling due after more than one year	8	( 1,078,333)		( 48,333)
Net assets		108,891		314,815
Capital and reserves
Called-up share capital		5,295		5,295
Share premium account		678,405		678,405
Profit and loss account		( 574,809 )		( 368,885 )
Total shareholders' funds		108,891		314,815

For the financial year ending 30 September 2021 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 financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of I've Been Found Ltd (registered number: 09036363) were approved and authorised for issue by the Board of Directors on 16 June 2022. They were signed on its behalf by:

A J Horne Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

I've Been Found Ltd (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Carlton House, 19 West Street, Epsom, Surrey, KT18 7RL, United Kingdom.

The financial statements have been prepared under the historical cost convention and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council.

The functional currency of I've Been Found Ltd is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. Whilst COVID-19 has continued to be a significant risk to the global economy, the Company has seen an improved position as the pandemic has developed, including securing the tender to develop a lost property system for a key UK transport provider.

The directors are committed to the continued growth of the business and have produced a cash flow forecast which includes significant assumptions around sales and spending on growth and development.

The directors have also assessed the worst-case scenario and on the basis that discretional spending on consultants, innovation and development could be reduced if needed, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for 12 months from the date of the financial statements being signed and they continue to adopt the going concern basis in preparing the annual financial statements.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Profit and Loss Account in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

Turnover

The Company’s turnover is generated primarily from the licensing of its software product, the provision of maintenance and support for those products. Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer.

Where the licensee has the right to use specified technology for a specified period of time, turnover is recognised on a straight line basis over the life of the contract to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where a contract has only been partially completed at the Balance Sheet date turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the Balance Sheet date. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year. Where a contract requires significant onboarding an up front support cost is charged and recognised immediately on completion.

Maintenance and support turnover is recognised over the period the service is provided.

Turnover from the sale of goods is recognised when the goods are physically delivered to the customer.

Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

Employee benefits

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Profit and Loss Account in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.

Finance costs

Finance costs are charged to the Profit and Loss Account over the term of the debt using the effective interest method so the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

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.

Intangible assets

Intangible assets are stated at cost or valuation, net of amortisation and any provision for impairment. Amortisation is provided on all intangible assets at rates to write off the cost or valuation of each asset over its expected useful life as follows:

Other intangible assets

3 years straight line

Other intangible assets

Other intangible assets relate to software development by the company. Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Plant and machinery etc.

3 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Leases

The Company as lessee
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Impairment of assets

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 the Profit and Loss Account as described below.

Non-financial assets
At each balance sheet date, the company reviews its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Financial assets
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 the Profit and Loss Account as described below.

An 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.

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.

For financial assets carried at amortised cost, the amount of 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.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a 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.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

Convertible loan notes
The component parts of compound instruments issued by the Company are classified as financial liabilities in accordance with the substance of the contractual arrangement. On initial recognition, the financial liability is recorded at its fair value. At the date of issue, in the case of a convertible bond denominated in the functional currency of the issuer that may be converted into a fixed number of equity shares, the fair value of the liability component is estimated using the prevailing market interest rate for a similar non-convertible instrument.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. 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.

2. Employees

	2021		2020
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	6		8

3. Intangible assets

	Other intangible assets		Total
	£		£
Cost
At 01 October 2020	336,791		336,791
Additions	271,329		271,329
At 30 September 2021	608,120		608,120
Accumulated amortisation
At 01 October 2020	114,783		114,783
Charge for the financial year	152,459		152,459
At 30 September 2021	267,242		267,242
Net book value
At 30 September 2021	340,878		340,878
At 30 September 2020	222,008		222,008

4. Tangible assets

	Plant and machinery etc.		Total
	£		£
Cost
At 01 October 2020	5,163		5,163
Additions	1,534		1,534
At 30 September 2021	6,697		6,697
Accumulated depreciation
At 01 October 2020	1,583		1,583
Charge for the financial year	1,981		1,981
At 30 September 2021	3,564		3,564
Net book value
At 30 September 2021	3,133		3,133
At 30 September 2020	3,580		3,580

5. Fixed asset investments

Investments in shares

Name of entity	Registered office	Nature of business	Class of shares	Ownership 30.09.2021	Ownership 30.09.2020
Notlost Limited	Carlton House, 19 West Street, Epsom, Surrey, KT18 7RL, United Kingdom	Dormant	Ordinary	100.00%	100.00%

I've Been Found Ltd holds 1 share in Notlost Limited with a nominal value of £1. The total investment value in the Balance Sheet is £nil.

6. Debtors

	2021		2020
	£		£
Trade debtors	4,959		48,149
Deferred tax asset	11,317		36,515
Corporation tax	76,699		80,495
Other taxation and social security	34,745		52,873
Other debtors	11,316		1,577
	139,036		219,609

7. Creditors: amounts falling due within one year

	2021		2020
	£		£
Trade creditors	80,724		84,766
Other creditors	344,272		563,899
Other taxation and social security	9,926		5,015
	434,922		653,680

8. Creditors: amounts falling due after more than one year

	2021		2020
	£		£
Convertible unsecured loan notes	1,040,000		0
Other creditors	38,333		48,333
	1,078,333		48,333

9. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

	2021		2020
	£		£
- within one year	55,200		2,655

Pensions

The Company operates a defined contribution pension scheme for the directors and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.

	2021		2020
	£		£
Unpaid contributions due to the fund (inc. in other creditors)	814		764

10. Related party transactions

Alinor Limited, a Company in which A Horne is a director and has a controlling interest, received £118,800 (2020: £87,435) of consultancy fees during the period.

PRE Consultants Ltd, a business that is owned by R Oliver, received £62,460 (2020: £33,950) of consultancy fees during the period.

Remuneration was paid to the directors of £30,000 (2020: £nil). The directors are the only key management personnel of this Company.

11. Ultimate controlling party

The directors do not consider there to be an ultimate controlling party.