ALERTFUSION_LIMITED - Accounts


Company registration number 11892632 (England and Wales)
ALERTFUSION LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
PAGES FOR FILING WITH REGISTRAR
ALERTFUSION LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
ALERTFUSION LIMITED
BALANCE SHEET
AS AT 30 JUNE 2022
30 June 2022
- 1 -
30 June
30 June
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
3
711,732
631,906
Tangible assets
4
8,637
16,287
720,369
648,193
Current assets
Debtors
5
189,925
268,721
Cash at bank and in hand
56,149
189,540
246,074
458,261
Creditors: amounts falling due within one year
6
(128,968)
(115,429)
Net current assets
117,106
342,832
Total assets less current liabilities
837,475
991,025
Provisions for liabilities
(172,612)
(116,659)
Net assets
664,863
874,366
Capital and reserves
Called up share capital
7
1
1
Share premium account
1,082,148
1,082,148
Profit and loss account deficit
(417,286)
(207,783)
Total equity
664,863
874,366

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 30 June 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

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.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

ALERTFUSION LIMITED
BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2022
30 June 2022
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 20 October 2022 and are signed on its behalf by:
J Varma
Director
Company Registration No. 11892632
ALERTFUSION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
- 3 -
1
Accounting policies
Company information

AlertFusion Limited is a private company limited by shares incorporated in England and Wales. The registered office is Globe House, Eclipse Park, Sittingbourne Road, Maidstone, Kent, United Kingdom, ME14 3EN.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Reporting period

These financial statements cover the year to 30 June 2022 whereas the comparative period covers the 10 month period from 1 September 2020 to 30 June 2021. The year end was changed to bring the accounting period in line with that of the company's investors. Therefore the amounts presented in the financial statements (including the related notes) are not entirely comparable.

1.3
Turnover

Turnover comprises income from the sale of software licences and the provision of associated training and related services, excluding discounts, value added tax and commission, to which the company was contractually entitled up to the balance sheet date.

 

Sales of training and related services are recognised by reference to the stage of completion. Revenue from the provision of software licences is recognised on a straight line basis over the period of the contract.

 

Income related to subsequent periods is deferred and included in other creditors. Income will be released to the profit and loss in the period to which the income relates.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. The policy is to capitalise identifiable software development expenditure to the extent that the technical, commercial and financial feasibility can be demonstrated. Amortisation of the software development costs commenced on 1 September 2020 and is charged over the estimated useful life of 3 years.

ALERTFUSION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 4 -
1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software development costs
3 years straight line
Intellectual property
10 years straight line
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Computers
3 years straight line

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.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of 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). 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.

Recoverable amount is the higher of fair value less costs to sell and 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.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

ALERTFUSION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 5 -
1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

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.

Classification of financial liabilities

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.

Basic financial liabilities

Basic financial liabilities, including creditors, deferred income and bank loans 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.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

ALERTFUSION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 6 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Employees

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

2022
2021
Number
Number
Total
3
2
ALERTFUSION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 7 -
3
Intangible fixed assets
Software development costs
Intellectual property
Total
£
£
£
Cost
At 1 July 2021
768,801
42,744
811,545
Additions
401,378
-
401,378
At 30 June 2022
1,170,179
42,744
1,212,923
Amortisation and impairment
At 1 July 2021
171,091
8,548
179,639
Amortisation charged for the year
317,277
4,275
321,552
At 30 June 2022
488,368
12,823
501,191
Carrying amount
At 30 June 2022
681,811
29,921
711,732
At 30 June 2021
597,710
34,196
631,906
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 July 2021
23,841
Additions
369
At 30 June 2022
24,210
Depreciation and impairment
At 1 July 2021
7,554
Depreciation charged in the year
8,019
At 30 June 2022
15,573
Carrying amount
At 30 June 2022
8,637
At 30 June 2021
16,287
ALERTFUSION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 8 -
5
Debtors
30 June
30 June
2022
2021
Amounts falling due within one year:
£
£
Corporation tax recoverable
97,469
186,078
Other debtors
92,456
82,643
189,925
268,721
6
Creditors: amounts falling due within one year
30 June
30 June
2022
2021
£
£
Trade creditors
517
11
Taxation and social security
7,950
7,464
Other creditors
120,501
107,954
128,968
115,429
ALERTFUSION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 9 -
7
Called up share capital

At 30 June 2022 and 30 June 2021 there were 1,061,976 ordinary shares of £0.000001 and 390,530 Seed Preferred shares of £0.000001 in issue.

8
Events after the reporting date

On 6 September 2022, the company issued unsecured convertible loan notes for a consideration of £90,000. This cash injection has further strengthened the company's cash flow position to enable on-going software development.

9
Directors' transactions

The below overdrawn loan account balance at the start and end of the financial year was included within Other Debtors at note 5. The balance related to one of the company's directors.

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Closing balance
£
£
£
£
Director's overdrawn loan account
2.00
55,784
6,006
1,156
62,946
55,784
6,006
1,156
62,946
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