ACCOUNTS - Final Accounts preparation
ACCOUNTS - Final Accounts preparation
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Registered number:
For the year ended
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Optasia Medical Limited
Company Information
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Optasia Medical Limited
Contents
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Optasia Medical Limited
Directors' Report
For the year ended 30 September 2021
The directors present their report and the financial statements for the year ended 30 September 2021.
The directors are responsible for preparing the directors' report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The group has conducted research and development of medical image understanding software with a view to further commercial exploitation of such software. Research and development costs amounting to £249,527 (2020 - £151,375) have been incurred in the year.
The loss for the year, after taxation, amounted to £390,844 (2020 - loss £298,039).
The directors who served during the year were:
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Optasia Medical Limited
Directors' Report (continued)
For the year ended 30 September 2021
During the year to 30 September 2021 the group reported losses of £390,844.
The Covid-19 virus outbreak has had a significant impact on the majority of UK businesses. Since lockdown restrictions were implemented by the UK Government in March 2020, the directors have carried out a variety of actions, including applying for applicable Government support (including utilisation of the Coronavirus Job Retention Scheme 'CJRS' for some employees) and deferring or cancelling costs where appropriate. The directors have prepared detailed cash flow forecasts for the next 12 months to 31 December 2022, which demonstrate that the company will continue to require regular funding to meet its requirements during the forecast period. The forecasts assume cash receipts from sales that have not yet been secured and the directors recognise that having regard to the company's stage of development there is a risk that the forecast sales may be delayed or not take place. The forecasts demonstrate that further funding is required for the next 12 months of around £423,000 depending on the level of sales and other income achieved. During the year, individual investors, through the investment vehicle Saffron Hill Ventures 2 Limited Partnership, have lent £298,637 to the company. The directors, after consultation with these individual investors, believe that they are both willing and able to make additional funds available to enable the company to meet its financial obligations as they fall due. In view of the above the directors believe that, for the foreseeable future due to the continued support from individual investors through Saffron Hill Ventures 2 Limited Partnership, the company will be able to meet all its obligations as they fall due and accordingly continue to prepare financial statements on the going concern basis. However, there is no certainty that additional funding will be available to the company for the forecast period as this is dependent on individual investors being willing and having sufficient and available resources to continue their investment through Saffron Hill Ventures 2 Limited Partnership. Should the company fail to achieve the forecast sales and individual investors either not be willing or able to make additional investments as required by the company and alternative sources of funding not be available, the company is unlikely to be able to continue in operational existence. In such circumstances the company's assets may not be realised at their carrying value and additional liabilities may arise.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
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Optasia Medical Limited
Directors' Report (continued)
For the year ended 30 September 2021
This report was approved by the board and signed on its behalf.
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Optasia Medical Limited
Independent Auditors' Report to the Members of Optasia Medical Limited
We have audited the financial statements of Optasia Medical Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 30 September 2021, which comprise the Group statement of comprehensive income, the Group and company balance sheets and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We draw attention to note 2.4 in the financial statements, which indicates that the company incurred a net loss of £390,844 during the year ended 30 September 2021 and, as of that date, the company's net liabilities were £4,726,897. As stated in note 2.4, these events or conditions, along with the other matters as set forth in note 2.4, indicate that a material uncertainty exists that may cast significant doubt on the Group's or the parent company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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Optasia Medical Limited
Independent Auditors' Report to the Members of Optasia Medical Limited (continued)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the directors' report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.
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Optasia Medical Limited
Independent Auditors' Report to the Members of Optasia Medical Limited (continued)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
∙The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
∙The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
∙Supporting documentation relating to the Company's policies and procedures for:
- Identifying, evaluating, and complying with laws and regulations
- Detecting and responding to the risks of fraud
∙The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
∙The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
∙The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, Charities SORP, Charities Act 2011, Charities Commission, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-bribery and Corruption.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
∙Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
∙Evaluation and testing of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
∙Enquiring of management about any actual and potential litigation and claims.
∙Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
We have also considered the risk of fraud through management override of controls by:
∙Testing the appropriateness of journal entries and other adjustments.
∙Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
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Optasia Medical Limited
Independent Auditors' Report to the Members of Optasia Medical Limited (continued)
∙Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.
This report is made solely to the company's members in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
Lancashire Gate
21 Tiviot Dale
Cheshire
SK1 1TD
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Optasia Medical Limited
Consolidated Statement of Comprehensive Income
For the year ended 30 September 2021
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Optasia Medical Limited
Registered number: 07327556
Consolidated Balance Sheet
As at
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements were approved and authorised for issue by the board and were signed on its behalf:
The notes on pages 11 to 20 form part of these financial statements.
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Optasia Medical Limited
Registered number: 07327556
Company Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 11 to 20 form part of these financial statements.
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Optasia Medical Limited
Notes to the Financial Statements
For the year ended 30 September 2021
Optasia Medical Limited is a private company limited by share capital incorporated in England, company number 07327556. The registered office address is Mellor House, Mellor Road, Cheadle Hulme, Cheadle, Cheshire, SK8 5AU.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
The financial statements do not include a consolidated cash flow statement because the company, as a small reporting entity, is exempt from the requirement to prepare such a statement under FRS 102 1A.7.
The company is also exempt under FRS 102 1AC.35 from disclosing related party transactions with entities which are wholly owned by the group.
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Optasia Medical Limited
Notes to the Financial Statements
For the year ended 30 September 2021
2.Accounting policies (continued)
During the year to 30 September 2021 the group reported losses of £390,844.
The Covid-19 virus outbreak has had a significant impact on the majority of UK businesses. Since lockdown restrictions were implemented by the UK Government in March 2020, the directors have carried out a variety of actions, including applying for applicable Government support (including utilisation of the Coronavirus Job Retention Scheme 'CJRS' for some employees) and deferring or cancelling costs where appropriate. The directors have prepared detailed cash flow forecasts for the next 12 months to 31 December 2022, which demonstrate that the company will continue to require regular funding to meet its requirements during the forecast period. The forecasts assume cash receipts from sales that have not yet been secured and the directors recognise that having regard to the company's stage of development there is a risk that the forecast sales may be delayed or not take place. The forecasts demonstrate that further funding is required for the next 12 months of around £423,000 depending on the level of sales and other income achieved. During the year, individual investors, through the investment vehicle Saffron Hill Ventures 2 Limited Partnership, have lent £298,637 to the company. The directors, after consultation with these individual investors, believe that they are both willing and able to make additional funds available to enable the company to meet its financial obligations as they fall due. In view of the above the directors believe that, for the foreseeable future due to the continued support from individual investors through Saffron Hill Ventures 2 Limited Partnership, the company will be able to meet all its obligations as they fall due and accordingly continue to prepare financial statements on the going concern basis. However, there is no certainty that additional funding will be available to the company for the forecast period as this is dependent on individual investors being willing and having sufficient and available resources to continue their investment through Saffron Hill Ventures 2 Limited Partnership. Should the company fail to achieve the forecast sales and individual investors either not be willing or able to make additional investments as required by the company and alternative sources of funding not be available, the company is unlikely to be able to continue in operational existence. In such circumstances the company's assets may not be realised at their carrying value and additional liabilities may arise.
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Optasia Medical Limited
Notes to the Financial Statements
For the year ended 30 September 2021
2.Accounting policies (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Optasia Medical Limited
Notes to the Financial Statements
For the year ended 30 September 2021
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the consolidated statement of comprehensive income in the same period as the related expenditure.
Functional and presentation currency
The company's functional and presentational currency is GBP. Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
Defined contribution pension plan
The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations. The contributions are recognised as an expense in the statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the statement of financial position. The assets of the plan are held separately from the group in independently administered funds.
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Optasia Medical Limited
Notes to the Financial Statements
For the year ended 30 September 2021
2.Accounting policies (continued)
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Optasia Medical Limited
Notes to the Financial Statements
For the year ended 30 September 2021
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Optasia Medical Limited
Notes to the Financial Statements
For the year ended 30 September 2021
4.Intangible assets (continued)
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Optasia Medical Limited
Notes to the Financial Statements
For the year ended 30 September 2021
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Optasia Medical Limited
Notes to the Financial Statements
For the year ended 30 September 2021
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Optasia Medical Limited
Notes to the Financial Statements
For the year ended 30 September 2021
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