Image Analysis Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 06286687 (England and Wales)

Financial Statements

for the Year Ended 31 December 2020

for

IMAGE ANALYSIS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Directors:

J R Andersen

R W Barker

R R Karl

Dr O Kubassova

J M Lundberg

C Berthoux

R J Nichol

Registered office:

125 Wood Street

London

EC2V 7AW

Registered number:

06286687 (England and Wales)

Auditors:

Haines Watts

Chartered Accountants

Statutory Auditor

Aissela

46 High Street

Esher

Surrey

KT10 9QY

Fixed assets

Tangible assets

5

22,368

8,781

Investments

6

750

750

23,118

9,531

Current assets

Debtors

7

1,336,194

843,243

Cash at bank

2,762,392

2,348,732

4,098,586

3,191,975

Creditors

Amounts falling due within one year

8

1,055,011

823,365

Net current assets

3,043,575

2,368,610

Total assets less current liabilities

3,066,693

2,378,141

Capital and reserves

Called up share capital

10

17,054

17,054

Share premium

3,263,800

3,263,800

Share based payment reserve

30,942

24,049

Retained earnings

(245,103

)

(926,762

)

Shareholders' funds

3,066,693

2,378,141

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 Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 27 September 2021 and were signed on its behalf by:

R J Nichol - Director

1.	Statutory information

Image Analysis Limited 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.

Going concern

The financial statements have been prepared on a going concern basis. The directors have considered the relevant information including the annual budget, and in response to Covid-19, have considered the company's available resources and ability to adapt to changes in its operating environment by scaling back its operations as necessary for the company to continue to operate for the foreseeable future. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Preparation of consolidated financial statements

The financial statements contain information about Image Analysis Limited 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.

Key source of estimation, uncertainty and judgement

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the assets.

There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable.

Turnover

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

Revenue for licence fees sold is recognised over the period of the licence agreement.

Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided the outcome can be estimated reliably.

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

-

33% on cost

Fixtures and fittings

-

33% on cost

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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 the profit and loss account.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

Taxation

Taxation for the year comprises current tax. Tax is recognised in the Profit and Loss Account except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current 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.

Foreign currencies

Transactions in currencies other than pound sterling are recorded at the rates of exchange prevailing at the date of the transaction. 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 are included in the operating result for the period.

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.

Share based payments

For equity-settled share based payment transactions, the company measures the goods or services received, and the corresponding increase in equity, directly, at the fair value of the goods or services received, unless that fair value cannot be estimated reliably.

The cost of equity-settled transactions with employees is measured by reference to the fair value of the equity instruments granted at the date at which they are granted and is recognised as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award. Fair value is determined by using an appropriate pricing model. In valuing equity-settled transactions, no account is taken of any vesting conditions, other than conditions linked to the price of the shares of the company (market conditions) and non vesting conditions. No expense is recognised for awards that do not ultimately vest.

Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any cost not yet recognised in the profit and loss account for the award is expensed immediately. Any compensation paid up to the fair value of the award at the cancellation or settlement date is deducted from equity, with any excess over fair value expensed in the profit and loss account.

Grant income

Grant income is recognised under the accrual model of Financial Reporting Standard 102.

Grant income is recognised in the profit and loss account on a systematic basis over the period in which the company recognises the related costs for which the grant is intended to compensate.

3.	Employees and directors

The average number of employees during the year was 23 (2019 - 18 ) .

4.	Auditors' remuneration

Fees payable to the company's auditors for the audit of the company's financial statements total £8,000 (2019: £9,250).

5.	Tangible fixed assets

Fixtures

Plant and

and

machinery

fittings

Totals

£

£

£

Cost

At 1 January 2020

37,710

4,357

42,067

Additions

22,247

-

22,247

Disposals

(4,026

)

-

(4,026

)

At 31 December 2020

55,931

4,357

60,288

Depreciation

At 1 January 2020

28,929

4,357

33,286

Charge for year

7,695

-

7,695

Eliminated on disposal

(3,061

)

-

(3,061

)

At 31 December 2020

33,563

4,357

37,920

Net book value

At 31 December 2020

22,368

-

22,368

At 31 December 2019

8,781

-

8,781

6.	Fixed asset investments

Shares in

group

undertakings

£

Cost

At 1 January 2020

and 31 December 2020

750

Net book value

At 31 December 2020

750

At 31 December 2019

750

7.

Debtors: amounts falling due within one year

2020

2019

£

£

Trade debtors

897,214

510,117

Amounts owed by group undertakings

73,186

-

Accrued income

149,564

115,328

Other debtors

15,803

7,600

Taxation and social security

134,398

181,334

VAT

1,790

9,712

Prepayments

64,239

19,152

1,336,194

843,243

8.

Creditors: amounts falling due within one year

2020

2019

£

£

Bank loans and overdrafts

7,520

1,176

Trade creditors

110,410

121,932

Amounts owed to group undertakings

-

6,985

Taxation and social security

100,322

86,439

Payments on account

694,448

510,263

Accruals and deferred income

135,383

96,570

Other creditors

6,928

-

1,055,011

823,365

9.	Leasing agreements

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

2020

2019

£

£

Within one year

-

23,520

10.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

1,705,400

Ordinary

0.01

17,054

17,054

11.	Disclosure under Section 444(5B) of the Companies Act 2006

The Report of the Auditors was unqualified.

Paul Hodgett (Senior Statutory Auditor)

for and on behalf of Haines Watts

12.	Share based payments

The company runs an equity settled shared based payment plan. The options are issued for a maximum of 10 years and vest on the sale or listing of the company. The holder of the options must continue to be in service through to the vesting date. All options lapse if the holder leaves the company.

The expense recognised for share based payments in the year to 31 December 2020 was £6,893 (2019: £7,648).

The fair value of the equity settled share options granted is estimated as at the date of grant using a black-scholes option pricing model taking into account the terms and conditions upon which the options were granted.

The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share options during the year:

2020

WAEP

2019

WAEP

No. of options

£

No. of options

£

Outstanding at the beginning of the year

261,880

3.87

259,880

3.87

Granted during the year

8,300

3.87

2,000

3.87

Forfeited during the year

(57,200

)

3.87

3.87

212,980

3.87

261,880

3.87