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

REGISTERED NUMBER: 03597254 (England and Wales)

YAMGO LTD

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

to

8

DIRECTORS:

I R Mullins

J R Green

M S A Grubb

M Krebsz

REGISTERED OFFICE:

Unit 4

Technium 1

Kings Road

Swansea

SA1 8PH

REGISTERED NUMBER:

03597254 (England and Wales)

AUDITORS:

Gerald Thomas

Chartered Accountants and Statutory Auditor

3 New Mill Court

Swansea Enterprise Park

Swansea

SA7 9FG

FIXED ASSETS

Intangible assets

4

32,600

-

Tangible assets

5

38,541

88,349

Investments

6

1

1

71,142

88,350

CURRENT ASSETS

Debtors

7

206,533

72,390

Cash at bank and in hand

232,483

87,368

439,016

159,758

CREDITORS

Amounts falling due within one year

8

134,500

115,161

NET CURRENT ASSETS

304,516

44,597

TOTAL ASSETS LESS CURRENT LIABILITIES

375,658

132,947

ACCRUALS AND DEFERRED INCOME

111,059

-

NET ASSETS

264,599

132,947

CAPITAL AND RESERVES

Called up share capital

9

39,998

39,998

Share premium

1,505,395

1,505,395

Retained earnings

(1,280,794

)

(1,412,446

)

SHAREHOLDERS' FUNDS

264,599

132,947

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 December 2021 and were signed on its behalf by:

I R Mullins - Director

1.	STATUTORY INFORMATION

Yamgo 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 principal activity of the company during the year was the provision of digital advertising services and development of a decentralised infrastructure for the delivery and tracking of digital content..

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 as modified by the revaluation of certain assets.

Going concern

The company has recorded a profit for the year and has net current assets and net assets at the balance sheet date.

During the year the company has made significant progress in generating turnover from its new advertising platform and this has contributed to the generation of net profits and positive cash flows. In addition, subsequent to the balance sheet date the company has been successful in securing a significant contract covering a period of four years. The company has also reported profits in the period after the balance sheet date and has increased its financial resources.

The directors have assessed the company's working capital requirements allowing for their anticipation of volatility in cryptocurrency values. They are confident that their current efforts to obtain additional equity and other finance to significantly increase turnover will be successful but are able to limit growth to reduce working capital requirements, including allowance for cryptocurrency volatility, within their existing financial resources.

The company is reliant upon a key customer for future sales generation. The key customer also settles sales consideration by way of its own cryptocurrency. Whilst the customer's cryptocurrency has experienced a trend of rising value since its inception in 2018, the nature of the cryptocurrency market is inherently volatile and the company carries the risk of its sales receipts falling in value before such time that they cryptocurrency can be sold for more traditional currencies.

The directors have considered the company's current position and its likely future profitability and cash flows, as well as any uncertainties and believe that the company can continue in operational existence for the foreseeable future. They therefore continue to prepare the accounts on a going concern basis.

Preparation of consolidated financial statements

The financial statements contain information about Yamgo 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.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors which are considered to be relevant. Actual results may differ from these estimates.

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 only effects that period or in the period of the revision and future periods if the revision affects both current and future periods.

Recovery of trade debtors

The directors assess trade debtor balances outstanding at the reporting date and make provisions against specific balances where deemed necessary.

Impairment of assets

Assets are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the income statement.

Provisions and contingencies

Provisions are recognised when the company has a present obligation as a result of a past event and a reliable estimate can be made of a probable adverse outcome. Otherwise, material contingent liabilities are disclosed unless a transfer of economic benefits is considered remote. Contingent assets are only disclosed if an inflow of economic benefits is probable.

Exceptional items

Transactions are disclosed as exceptional items where the directors assess that such transactions are sufficiently material or unusual that separate disclosure is required in order for the financial statements to show a true and fair view of the company's results.

Turnover and revenue recognition

Turnover represents the revenue arising from the sale of services, stated at the fair value of the consideration receivable, excluding value added tax, rebates and discounts. Turnover is recognised in accordance with the delivery of the services provided.

Tangible fixed assets

Tangible fixed assets are measured at cost less accumulated depreciation and impairment provisions. Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Plant and machinery etc

-

10% and 25% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Intangible fixed assets

Intangible assets relate to cryptocurrency. Intangible assets are recognised initially at cost and subsequently revalued at fair value at each balance sheet date. Fair value is based on the quoted market price at the balance sheet date. The company does not hold cryptocurrency for speculative purposes.

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 taxation

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 the income statement in the period to which they relate.

Financial instruments

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Other financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

Government grants

Grants are credited to deferred revenue when entitlement to the grant has been established. Grants towards capital expenditure are then released to the Income Statement over the useful life of the assets. Grants towards revenue expenditure are released to the Income Statement as the related expenditure is incurred.

Share-based payments

The company has equity-settled share based-payments issued to directors and employees. The requirements of FRS 102 Section 1A have been applied and the share options are measured at fair value at the grant date.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 8 (2019 - 9 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST OR VALUATION

Additions

460,867

Disposals

(427,518

)

Revaluations

(749

)

At 31 December 2020

32,600

NET BOOK VALUE

At 31 December 2020

32,600

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 January 2020

232,520

Additions

6,603

Disposals

(7,932

)

At 31 December 2020

231,191

DEPRECIATION

At 1 January 2020

144,171

Charge for year

55,849

Eliminated on disposal

(7,370

)

At 31 December 2020

192,650

NET BOOK VALUE

At 31 December 2020

38,541

At 31 December 2019

88,349

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2020

and 31 December 2020

1

NET BOOK VALUE

At 31 December 2020

1

At 31 December 2019

1

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

115,983

5,260

Other debtors

90,550

67,130

206,533

72,390

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

360

13,163

Taxation and social security

7,497

-

Other creditors

126,643

101,998

134,500

115,161

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

399,975

Ordinary

10p

39,998

39,998

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

The Report of the Auditors was unqualified.

Rachel Doyle (Senior Statutory Auditor)

for and on behalf of Gerald Thomas

11.	OTHER FINANCIAL COMMITMENTS

The company has future operating lease commitments totalling £3,125 (2019 - £3,125). These commitments are unsecured.

12.	SHARE-BASED PAYMENT TRANSACTIONS

The company has granted share options, which were still in issue at the balance sheet date, as follows:

Year of issue

2015

2016

Number granted

9,200

15,000

Exercise price

£10

£10

Number of employees/directors/others

1

2

Exercisable to

31/12/25

31/12/26

At the balance sheet date, the total share options granted to directors were as follows:

Director

Options held

I R Mullins

14,200

13.	RELATED PARTY DISCLOSURES

At the balance sheet date an amount of £37,564 (2019 - £1,461) was owed to company directors. The balance is unsecured, interest free, and repayable on demand.