Sportlight Technology Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 09655770 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

SPORTLIGHT TECHNOLOGY LTD

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

R Keustermans

H J Kraft

S Loudon

M P Mellor

REGISTERED OFFICE:

2 Underwood Row

London

N1 7LQ

REGISTERED NUMBER:

09655770 (England and Wales)

ACCOUNTANTS:

Horizon Accounts Ltd

2 Underwood Row

London

N1 7LQ

FIXED ASSETS

Tangible assets

5

18,706

13,562

CURRENT ASSETS

Debtors

6

267,300

228,504

Cash at bank

169,263

842,300

436,563

1,070,804

CREDITORS

Amounts falling due within one year

7

37,898

29,207

NET CURRENT ASSETS

398,665

1,041,597

TOTAL ASSETS LESS CURRENT LIABILITIES

417,371

1,055,159

CAPITAL AND RESERVES

Called up share capital

989

989

Share premium

2,928,619

2,928,619

Share option reserve

552,518

370,089

Other reserves

(9

)

(9

)

Retained earnings

(3,064,746

)

(2,244,529

)

SHAREHOLDERS' FUNDS

417,371

1,055,159

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 7 April 2022 and were signed on its behalf by:

R Keustermans - Director

1.	STATUTORY INFORMATION

Sportlight Technology 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 presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

Share based payments as set out in the notes the accounts have been made to the employees of the company. As disclosed in the Share Based Payments accounting policy note below, the fair value of options are recognised in the income statement over the course of the vesting period. The fair value is estimated to be £36.61 per share which is based on the value of Ordinary shares issued near to the time of grant. No other significant judgements or estimates have been used in order to arrive at the figures contained within the financial statements.

Turnover

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

Tangible fixed assets

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated 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 - 3 years

Office equipment - 5 years

Government grants

Other income includes grant income received. A grant that does not impose specified future performance-related conditions is recognised in income when the grant proceeds are received or receivable.

In the case of performance related grants, income is recognised only when the performance related conditions are met.

Taxation

Taxation for the year comprises current 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 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 statement of financial position date.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

The company's revenue expenditure on research and development often qualifies for relief under the various R&D tax relief schemes, including the SME R&D tax relief scheme and the Research and Development Expenditure Credit (RDEC) scheme. Benefits arising from successful claims under the SME R&D tax relief scheme are reflected 'below the line' as a reduction in the Corporation Tax charge or, if the company is loss making, as a Corporation Tax credit. Benefits arising from successful claims under the RDEC scheme are subject to Corporation Tax. Gross benefits are therefore reflected 'above the line' in Other Income with the corresponding charge to Corporation Tax reflected as an increase in the Corporation Tax charge, or decrease in the Corporation Tax credit if appropriate. Benefits receivable from R&D claims are recognised in the reporting period in which the qualifying expenditure is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position 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 the income statement on a straight line basis over the period of the lease.

Financial instruments

The Company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances and investments in commercial paper, are initially recognised 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. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the Income Statement.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the Income Statement.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price.

Such assets are subsequently carried at fair value and the changes in fair value are recognised in, the Income Statement, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors, loans from fellow Group companies that are classified as debt, 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.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Creditors are classified as current liabilities if payment is due within one year. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Going concern

The financial statements have been prepared on the going concern basis. The company has incurred losses during the reporting period however the Directors believe that the company has sufficient resources to be able to meet its obligations, if and when, they fall due. The directors are therefore of the opinion that they should continue to adopt the going concern basis of accounting in preparing the financial statements.

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.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk to changes in value.

Share based payments

The company operates an equity-settled compensation plan for its employees. The fair value of the employee services received in exchange for the grant of the options is recognised as an expense in the relevant entity. The total amount to be expensed over the vesting period is determined by reference to the fair value of the options granted at the date of grant, excluding the impact of any non-market vesting conditions (for example, profitability and sales growth targets). Non-market vesting conditions are included in assumptions about the number of options that are expected to vest. At each statement of financial position date, the entity revises its estimates of the number of options that are expected to vest. It recognises the impact of the revision to original estimates, if any, in the relevant income statement. The credit entry is taken to reserves because the share options are equity-settled.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 12 (2020 - 7 ) .

5.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 January 2021

8,072

14,236

22,308

Additions

8,248

3,707

11,955

At 31 December 2021

16,320

17,943

34,263

DEPRECIATION

At 1 January 2021

1,422

7,324

8,746

Charge for year

2,454

4,357

6,811

At 31 December 2021

3,876

11,681

15,557

NET BOOK VALUE

At 31 December 2021

12,444

6,262

18,706

At 31 December 2020

6,650

6,912

13,562

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

as restated

£

£

Trade debtors

20,550

-

Other debtors

246,750

228,504

267,300

228,504

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

as restated

£

£

Trade creditors

2,173

4,454

Taxation and social security

21,620

18,344

Other creditors

14,105

6,409

37,898

29,207

8.	LEASING AGREEMENTS

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

31.12.21

31.12.20

as restated

£

£

Within one year

21,000

21,000

Between one and five years

10,150

31,150

31,150

52,150

9.	POST BALANCE SHEET EVENTS

The company is currently in the process of raising £4m through a funding round, and this will result in the company issuing new shares in the near future.

10.	ULTIMATE CONTROLLING PARTY

The company has no ultimate controlling party.

11.	SHARE-BASED PAYMENT TRANSACTIONS

The company operates an EMI qualifying share option scheme for employees. As at the date of the Statement of Financial Position, the company had granted 18,216 EMI qualifying share options to 10 employees with exercise price of £3.657 and £6.246 per share. As at the year end 15,092 share options had vested, no share options had lapsed and no share options were exercised. Share options vest under varying terms as set out in the agreements over a period ranging from 23 to 46 months from the date of grant.