| PBD Biotech Limited |
| Notes to the Accounts |
for the year ended 28 February 2022 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Going concern |
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The Directors have considered whether the going concern basis is an appropriate basis on which to prepare the financial statements. There is not significant uncertainty as to whether the Company will continue to trade, and accordingly the going concern basis of accounting is considered to be appropriate. |
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Turnover: rendering of services |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. |
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Turnover includes revenue earned from the rendering of services. |
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Turnover: sale of goods |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. |
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Turnover includes revenue earned from the sale of goods. |
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Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. |
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. Intangible fixed assets are recognised in order for the accounts to present a true and fair view. |
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Acquired patent rights are amortised to the profit and loss account in equal annual instalments over the maximum permissible period of 10 years, whichis less than the life of the underlying patents. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. |
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Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Plant and machinery |
over 5 years |
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Office equipment (technology) |
over 3 years |
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Office equipment (other) |
over 5 years |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. |
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Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. |
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Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). |
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Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Government grants |
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Government grants are recognised using the accruals model. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. |
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A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. |
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Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. |
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Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period, foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to the profit and loss in the period arising. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. |
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The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the Company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. |
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Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Consolidation |
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The Company is exempt from the requirement to prepare consolidated accounts on the basis of being a small company for the purposes of section 383 of the Companies Act 2006. These accounts are the separate financial statements of the Company. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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| 2 |
Government grants |
2022 |
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2021 |
| £ |
£ |
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The operating loss includes the following items |
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- Government Coronavirus support grants received |
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885 |
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43,347 |
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| 3 |
Employees |
2022 |
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2021 |
| Number |
Number |
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Average number of persons employed by the Company |
8 |
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5 |
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| 4 |
Intangible fixed assets |
£ |
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Acquired patent rights |
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Cost |
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At 1 March 2021 |
200,000 |
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At 28 February 2022 |
200,000 |
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Amortisation |
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At 1 March 2021 |
1,667 |
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Provided during the year |
20,000 |
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At 28 February 2022 |
21,667 |
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Net book value |
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At 28 February 2022 |
178,333 |
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At 28 February 2021 |
198,333 |
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| 5 |
Tangible fixed assets |
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Plant and machinery |
| £ |
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Cost |
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At 1 March 2021 |
17,206 |
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Additions |
15,612 |
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At 28 February 2022 |
32,818 |
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Depreciation |
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At 1 March 2021 |
15,423 |
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Charge for the year |
13,785 |
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At 28 February 2022 |
29,208 |
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Net book value |
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At 28 February 2022 |
3,610 |
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At 28 February 2021 |
1,783 |
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| 6 |
Investments |
| Investments in |
| subsidiary |
| undertakings |
| £ |
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Cost |
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At 1 March 2021 |
60 |
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At 28 February 2022 |
60 |
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| 7 |
Debtors |
2022 |
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2021 |
| £ |
£ |
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Trade debtors |
3,185 |
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2,412 |
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Other debtors |
101,310 |
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60,436 |
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104,495 |
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62,848 |
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Amounts due after more than one year included above |
1,221 |
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1,221 |
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| 8 |
Creditors: amounts falling due within one year |
2022 |
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2021 |
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£ |
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Bank loans and overdrafts |
3,693 |
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1,704 |
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Trade creditors |
215,853 |
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49,119 |
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Other taxes and social security costs |
- |
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30,016 |
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Other creditors |
25,697 |
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20,515 |
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245,243 |
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101,354 |
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| 9 |
Creditors: amounts falling due after one year |
2022 |
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2021 |
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£ |
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Bank loans |
14,018 |
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17,496 |
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Other creditors |
2,165,238 |
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2,005,238 |
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2,179,256 |
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2,022,734 |
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| 10 |
Share premium |
2022 |
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2021 |
| £ |
£ |
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At 1 March 2021 |
1,341,825 |
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699,305 |
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Premium on new shares allotted |
- |
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642,520 |
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Costs of share issue |
(6,733) |
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- |
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1,335,092 |
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1,341,825 |
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| 11 |
Share option reserve |
2022 |
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2021 |
| £ |
£ |
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At 1 March 2021 |
75,096 |
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- |
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Expense (released from)/recognised in profit and loss |
(12,160) |
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75,096 |
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62,936 |
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75,096 |
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| 12 |
Events after the reporting date |
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The Company concluded an equity fundraise in September 2022, raising £2,444,913. This fundraise triggered the conversion from loans into issued share capital of the Company’s convertible loan notes (including accrued interest), in aggregate £2,251,616. |
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| 13 |
Related party transactions |
2022 |
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2021 |
| £ |
£ |
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Compensation paid to key management personnel |
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258,115 |
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125,067 |
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Loans from directors |
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During a previous financial year, certain directors advanced funds to the company. Such funds are unsecured, repayable on demand and do not attract interest. |
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Amount due from (to) the related party |
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(2,500) |
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(2,500) |
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| 14 |
Controlling party |
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The directors do not consider that any person or group of persons acting in concert has a controlling stake, and accordingly there is no ultimate controlling party. |
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| 15 |
Other information |
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PBD Biotech Limited is a private Company limited by shares and incorporated in England. Its registered office is: |
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Grosvenor House |
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11 St. Pauls Square |
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Birmingham |
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West Midlands, England |
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B3 1RB |
