Cronycle Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 08628869 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 December 2020

for

Cronycle Ltd

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

N J J Granatino

H J Marchet

SECRETARY:

CC Secretaries Limited

REGISTERED OFFICE:

3rd Floor

100 Brompton Road

London

SW3 1ER

REGISTERED NUMBER:

08628869 (England and Wales)

ACCOUNTANTS:

Cameron Cunningham Limited

1st Floor, Buckhurst House

42/44 Buckhurst Avenue

Sevenoaks

Kent

TN13 1LZ

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

2,314

5,893

Investments

6

1,120,066

1,120,066

1,122,380

1,125,959

CURRENT ASSETS

Debtors

7

427,599

533,447

Cash at bank

70,360

49,768

497,959

583,215

CREDITORS

Amounts falling due within one year

8

(2,471,795

)

(1,979,521

)

NET CURRENT LIABILITIES

(1,973,836

)

(1,396,306

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(851,456

)

(270,347

)

CAPITAL AND RESERVES

Called up share capital

9,769

9,769

Share premium

5,453,576

5,453,576

Convertible Loan Equity

2,146

2,146

Retained earnings

(6,316,947

)

(5,735,838

)

(851,456

)

(270,347

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2020 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 Board of Directors and authorised for issue on 28 June 2021 and were signed on its behalf by:

N J J Granatino - Director

1.	STATUTORY INFORMATION

Cronycle Ltd 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.

Preparation of consolidated financial statements

The financial statements contain information about Cronycle Ltd as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Critical accounting judgements

The company is recognising the research and development tax credit for the current year, this is based on the acceptance of all previous research and development tax credits by HMRC without amendment.

The holding of 95.7% holding in Right Relevance constitutes control of the company and has therefore been classed as a subsidiary in the accounts.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

The monthly subscription fees are recognised at at the renewal point each month.

For quarterly subscriptions paid in installments the revenue is recognised at the time of the installment invoice becoming due.

Annual fees paid in a single invoice are recognised over the annual period and any fees for 2020 are accrued at the year end.

Intangible fixed assets

Amortisation is provided at the following annual rates in order to write off the cost each asset over its estimated useful life:

Development costs - 20% straight line basis

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 etc - 33% straight line basis

Investments in subsidiaries and associates

The investment in the subsidiary Right Relevance Inc.is recognised at cost including associated acquisition transaction costs.

The investment in the associate is recognised at cost, the company is deemed to be associated based on the 20% shareholding.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

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.

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 NIL (2019 - 1 ).

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 January 2020

and 31 December 2020

130,000

AMORTISATION

At 1 January 2020

and 31 December 2020

130,000

NET BOOK VALUE

At 31 December 2020

-

At 31 December 2019

-

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 January 2020

25,592

Disposals

(20,572

)

At 31 December 2020

5,020

DEPRECIATION

At 1 January 2020

19,699

Charge for year

1,657

Eliminated on disposal

(18,650

)

At 31 December 2020

2,706

NET BOOK VALUE

At 31 December 2020

2,314

At 31 December 2019

5,893

6.	FIXED ASSET INVESTMENTS

Shares in

group

Unlisted

undertakings

investments

Totals

£

£

£

COST

At 1 January 2020

and 31 December 2020

1,119,866

200

1,120,066

NET BOOK VALUE

At 31 December 2020

1,119,866

200

1,120,066

At 31 December 2019

1,119,866

200

1,120,066

The shares in group undertakings relates to the purchase of 95.70% holding of the issued and outstanding common stock in Right Relevance, Inc.

The investment is held at cost including acquisition fees.

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

4,549

7,597

Amounts owed by group undertakings

422,050

422,050

Other debtors

1,000

103,800

427,599

533,447

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

20,398

47,114

Taxation and social security

(77,107

)

-

Other creditors

2,528,504

1,932,407

2,471,795

1,979,521

Within other creditors is £1,953,900 (2019: £1,663,523) of loans.

The interest of these convertible loans is 3%.

The convertible loan is recognised at amortized cost with the remainder featured in reserves.

9.	GOING CONCERN AND THE IMPACT OF COVID

The directors have considered the anticipated, but yet unknown, impact of the COVID-19 pandemic on the company's continuing operations. The liquidity position continues to be closely monitored and the directors confirm that they have reasonable expectation that the company has adequate resources to continue operating for at least 12 months from the date of signing these accounts. They therefore consider it appropriate to prepare the accounts on a going concern basis.