Signifyd UK Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: NI656243 (Northern Ireland)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

FOR

SIGNIFYD UK LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

J R Bennett

E J Whitehead

REGISTERED OFFICE:

C/o Moore Stephens (Ni) Llp 4th Floor,

Donegall Square North

Belfast

BT1 5GB

REGISTERED NUMBER:

NI656243 (Northern Ireland)

AUDITORS:

WD Audit Limited

Lower Ground Floor

111 Charterhouse Street

London

EC1M 6AW

FIXED ASSETS

Tangible assets

4

519,599

243,811

CURRENT ASSETS

Debtors

5

681,795

239,750

Cash at bank

521,763

522,097

1,203,558

761,847

CREDITORS

Amounts falling due within one year

6

(1,187,414

)

(779,505

)

NET CURRENT ASSETS/(LIABILITIES)

16,144

(17,658

)

TOTAL ASSETS LESS CURRENT LIABILITIES

535,743

226,153

CAPITAL AND RESERVES

Called up share capital

8

100

100

Retained earnings

9

535,643

226,053

SHAREHOLDERS' FUNDS

535,743

226,153

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 23 September 2021 and were signed on its behalf by:

J R Bennett - Director

1.	STATUTORY INFORMATION

Signifyd UK Ltd is a private company, limited by shares , registered in Northern Ireland. 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.

Turnover

Turnover represents income earned from the parent, Signifyd, Inc based on a cost plus agreement, excluding Value Added Tax.

Tangible fixed assets

Tangible assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs and borrowing costs capitalised.

Depreciation is provided at the following annual rates on a straight-line basis in order to write off each asset over its estimated useful life.

Computer Equipment - 33% on cost

Long Leasehold - 10% on cost

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

Repairs, maintenance and minor inspection costs are expensed as incurred.

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.

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

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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 77 (2019 - 32 ) .

4.	TANGIBLE FIXED ASSETS

Long

Computer

leasehold

equipment

Totals

£

£

£

Cost

At 1 January 2020

189,143

62,326

251,469

Additions

220,668

130,541

351,209

At 31 December 2020

409,811

192,867

602,678

Depreciation

At 1 January 2020

3,152

4,506

7,658

Charge for year

30,784

44,637

75,421

At 31 December 2020

33,936

49,143

83,079

Net book value

At 31 December 2020

375,875

143,724

519,599

At 31 December 2019

185,991

57,820

243,811

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Amounts owed by group undertakings

437,133

-

Other debtors

57,640

49,056

VAT

113,027

144,122

Prepayments

73,995

46,572

681,795

239,750

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

32,107

8,583

Amounts owed to group undertakings

-

444,149

Tax

66,862

-

Social security and other taxes

218,221

139,024

Accrued expenses

870,224

187,749

1,187,414

779,505

7.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2020

2019

£

£

Within one year

267,490

133,745

Between one and five years

746,743

490,400

1,014,233

624,145

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

100

Ordinary

£1

100

100

9.

RESERVES

Retained

earnings

£

At 1 January 2020

226,053

Profit for the year

309,590

At 31 December 2020

535,643

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

The Report of the Auditors was unqualified.

Roy Davis (Senior Statutory Auditor)

for and on behalf of WD Audit Limited

11.	ULTIMATE PARENT COMPANY

The immediate and ultimate controlling party is Signifyd, Inc., incorporated in California, United States of America having its registered office address and principal place of business at 2540 N. First Street, Suite 300, San Jose, CA 95131, United States of America.

12.	RELATED PARTY TRANSACTION

Of the company's turnover of £7,123,745 (FY 2019: £4,108,160) is derived from the marketing and sales support services agreement at cost plus 5% and research and development services agreement at cost plus 7.1% to its parent company, Signifyd, Inc. a company incorporated in the United States of America. At the year-end £437,133 (FY 2019: £444,149 - creditor) was owed by the parent company.

13.	SHARE-BASED PAYMENTS

Under the terms of their employment contracts the employees of the company are entitled to participate in the share based payment scheme of the parent company Signifyd Inc. During the year options have been granted to 33 employees of the company for 63,305 shares of common stock in Signifyd Inc. 369 options were exercised, 11,776 options were were cancelled during the year leaving 221,482 outstanding at the year end. The outstanding options have an exercise price ranging from $5.77 to $6.17 per share.