Afternoonify Ltd - Filleted accounts

Afternoonify Ltd - Filleted accounts

AFTERNOONIFY LTD - Company Information

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Registered number
09874412
Afternoonify Ltd
Filleted Accounts
31 October 2021
Afternoonify Ltd
Registered number: 09874412
Balance Sheet
as at 31 October 2021
Notes 2021 2020
£ £
Fixed assets
Intangible assets 4 341 519
Tangible assets 5 781 2,265
1,122 2,784
Current assets
Debtors 6 72,962 74,380
Cash at bank and in hand 93,337 76,767
166,299 151,147
Creditors: amounts falling due within one year 7 (68,090) (210,788)
Net current assets/(liabilities) 98,209 (59,641)
Total assets less current liabilities 99,331 (56,857)
Creditors: amounts falling due after more than one year 8 (45,000) (45,000)
Net assets/(liabilities) 54,331 (101,857)
Capital and reserves
Called up share capital 513 290
Share premium 2,254,317 1,832,416
Share Option Reserve 46,378 25,281
Profit and loss account (2,246,877) (1,959,844)
Shareholders' funds 54,331 (101,857)
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Tom Quick
Director
Approved by the board on 22 December 2021
Afternoonify Ltd
Notes to the Accounts
for the year ended 31 October 2021
1 Accounting policies
Basis of preparation
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).
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Intangible fixed assets
Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. 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:
Computer Equipment 33.33% on straight line
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. 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.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). 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.
Impairment
Financial assets (including trade and other debtors)
A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. For financial instruments measured at cost less impairment an impairment is calculated as the difference between its carrying amount and the best estimate of the amount that the company would receive for the asset if it were to be sold at the reporting date. Interest on the impaired asset continues to be recognised through the unwinding of the discount. Impairment losses are recognised in profit or loss. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.
Non-financial assets
The carrying amounts of the company’s non-financial assets reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
An impairment loss is recognised if the carrying amount of an asset exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss.
Employee benefits
Defined contribution plans and other long term employee benefits
A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees.
Share based payments
The grant date fair value of share-based payments awards granted to employees is recognised as an employee expense, with a corresponding increase in equity, over the period in which the employees become unconditionally entitled to the awards.
The fair value of the awards granted is measured using an option pricing model, taking into account the terms and conditions upon which the awards were granted. The amount recognised as an expense is adjusted to reflect the actual number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number of awards that do meet the related service and non-market performance conditions at the vesting date.
For share-based payment awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. 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. 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. Current and deferred tax assets and liabilities are not discounted.
Provisions
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.
Foreign currency translation
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 profit or loss.
Judgments in applying accounting policies and key sources of estimation uncertainty
In the application of the Company's accounting policies, which are described in note 1 to these financial statements, management are required to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Balance Sheet date and the amounts reported for revenues and expenses during the year. The estimates and assumptions are based
on historical experience and other factors that are considered to be relevant.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

The following judgments, estimates and assumptions have had the most significant effect on the amounts recognised in these financial statements:

Share option charges
At the end of each financial period the directors review options, as part of the review process, the number of options expected to vest at maturity are assessed and the share option charge is adjusted accordingly. The actual vesting of these options depends on future events and as such there is significant estimation uncertainty.
2 Total tax recognised in the profit and loss account 2021 2020
£ £
Current Tax
Current year R&D Tax Credit (69,062) (71,949)
Adustment in respect of Prior Year (16,000)
(85,062) (71,949)
3 Employees 2021 2020
Number Number
Average number of persons employed by the company 6 6
4 Intangible assets £
Intellectual Property:
Cost
At 1 November 2020 890
At 31 October 2021 890
Amortisation
At 1 November 2020 371
Provided during the year 178
At 31 October 2021 549
Net book value
At 31 October 2021 341
At 31 October 2020 519
Intellectual Property is being written off in equal annual instalments over its estimated economic life of 5 years.
5 Tangible fixed assets
Computer Equipment
£
Cost
At 1 November 2020 5,802
At 31 October 2021 5,802
Depreciation
At 1 November 2020 3,537
Charge for the year 1,484
At 31 October 2021 5,021
Net book value
At 31 October 2021 781
At 31 October 2020 2,265
6 Debtors 2021 2020
£ £
Trade debtors 1,413 1,253
Prepayments 2,487 -
Other debtors 69,062 73,127
72,962 74,380
7 Creditors: amounts falling due within one year 2021 2020
£ £
Trade creditors 7,500 43,776
Accruals and deferred Income 57,434 69,631
Taxation and social security costs 3,049 97,274
Other creditors 107 107
68,090 210,788
8 Creditors: amounts falling due after one year 2021 2020
£ £
Bank loans 45,000 45,000
Share Schemes 2021 2020
£ £
Outstanding as at 1 November 5,408 5,408
Expired during the year - -
At 31 October 2021 5,408 5,408
Equity-settled schemes - charges arising 2021 2020
£ £
21,097 9,358
9 Related party transactions
As at 31 October 2021, T Quick owed the company nil (2020: £1178). T Quick is a director of the company. The loan is interest free and repayable on demand.

During the year, the company paid nil (2020: £14,999) to Mercia Fund Management (Nominees) Limited, a former director and shareholder, for its services. Mercia Fund Limited credited £12,499 to the company, which was set off against liabilities owing to Mercia. As at 31 October 2021, there was £7495 (2020: £22498) owing to Mercia Fund Management (Nominees) Limited.
10 Material uncertainty related to going concern
When preparing financial statements, International Accounting Standard 1 (‘the Standard’) requires management to assess the company’s ability to continue as a going concern. The Standard defines going concern by explaining that financial statements are prepared on a going concern basis unless management either intends to liquidate the entity or to cease trading, or has no realistic alternative but to
do so. When assessing whether to prepare financial statements on a going concern basis, the Standard requires management to look out at least 12 months from the end of the reporting period.

The company incurred a net loss of £286,022 during the year ended 30 October 2021.Management has kept the company’s cashflow under close scrutiny during the year to October 2021. As a result, in August 2021, it was decided that the CEO would stop drawing a salary and all other staff would reduce their salary to 50% of previous levels until such time that the company has sufficient financial visibility to return to100% of salary levels. Without this sacrifice, the company would not have been in a position to continue trading and the directors are grateful for the sacrifice made by staff.

Discussions continue with third parties to establish a viable funding platform for the company. Management have also reviewed forward trading performance and, while there are uncertainties about the ability of the company to deliver forecast revenues, commercial discussions with existing and potential clients continue which would deliver sufficient revenue to allow the company to trade through to profitability without any additional funding being made available to the company.

In reviewing the basis or preparing the financial statements, management has considered those factors that relate to the company’s current and expected profitability, the timing of repayment of existing financing facilities and potential sources of replacement financing. Given the ongoing challenges with the COVID 19 pandemic, management has also considered the effects of any temporary shut-down or curtailment of the company’s activities, possible restrictions on activities that might be imposed by governments in the future, the continuing availability of any government support and the effects of longer-term structural changes in the market.

Management has concluded the going concern basis of preparation is appropriate but material uncertainties about going concern remain after considering mitigating actions.
11 Other information
Afternoonify Ltd is a private company limited by shares and incorporated in England. Its registered office is:
18 Worley Road
St Albans
Hertfordshire
United Kingdom
AL3 5NS
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