Company No: SC683344 (Scotland)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2022
		£
Fixed assets
Intangible assets	3	2,487,937
Tangible assets	4	79,432
		2,567,369
Current assets
Stocks	5	173,501
Debtors	6	21,175
Cash at bank and in hand		36,193
		230,869
Creditors
Amounts falling due within one year	7	( 2,030,650)
Net current liabilities		(1,799,781)
Total assets less current liabilities		767,588
Provision for liabilities	8	( 39,620)
Accruals and deferred income	10	( 1,742,094)
Net liabilities		( 1,014,126)
Capital and reserves
Called-up share capital	9	1
Profit and loss account		( 1,014,127 )
Total shareholder's deficit		( 1,014,126)

For the financial period ending 31 March 2022 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The member has not required the Company to obtain an audit of its financial statements for the financial period in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of Leap Automation Limited (registered number: SC683344) were approved and authorised for issue by the Director on 13 March 2023. They were signed on its behalf by:

Benjamin Stuart Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial period, unless otherwise stated.

General information and basis of accounting

Leap Automation Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in Scotland. The address of the Company's registered office is 28 Albyn Place, Aberdeen, AB10 1YL, United Kingdom. The principal place of business is Unit 14, Hareness Trade Park, Hareness Road, Altens, Aberdeen, AB12 3LE.

The financial statements have been prepared under the historical cost convention and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.

Going concern

The company incurred a loss for the year and has net liabilities at the period end, which is in line with the directors’ expectation given the stage of development of the business.

In making their going concern assessment, the Directors have reviewed sensitised trading and cashflow forecasts for the Company and wider Group through to March 2024.

The company is fully supported by its parent company, Quantum Leap Technologies (Holdings) Limited. In line with the Board’s strategic plan, the Group raised external equity investment of £1.6m during the financial year and subsequent to the year end, raised a further £1.2m to support the Group’s growth plans. At the time of approval of these financial statements, the Board are in the process of raising further equity funding to support the Group’s ongoing activities.

Based on the Group’s fundraising track record and commercial prospects, the Board are confident in the Group’s ability to complete the fundraising referred to above and therefore for the Group to continue in operational existence for the foreseeable future and meet its financial obligations as they fall due, for a period of at least 12 months from the date of signing these financial statements.

In making our going concern assessment, the Directors have taken into consideration the ongoing financial support of the parent company, who have confirmed that they will provide such funding as the company requires for a period of at least 12 months from the date of approval of these financial statements. In addition, the parent company have confirmed that they will not seek repayment of intercompany loan balances of £1,986,952 due to them (and a fellow subsidiary) until the business is in a position to do so, or to the detriment of any other creditors.

On this basis of the above, the Directors continue to adopt the going concern basis in preparing the financial statements.

Reporting period length

The current period is from 10 December 2020 to 31 March 2022. The period end date was changed from 31 December 2021 to 31 March 2022 to bring the company's period-end date in-line with the parent and related companies.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Profit and Loss Account in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of robots for hire is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Employee benefits

Short term benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Profit and Loss Account in respect of pension costs and other post-retirement benefits is the contributions payable in the financial period. Differences between contributions payable in the financial period and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Intangible assets

Intangible assets are stated at cost or valuation, net of amortisation and any provision for impairment. Amortisation is provided on all intangible assets at rates to write off the cost or valuation of each asset over its expected useful life as follows:

Development costs

not amortised

Research and development

Research expenditure is written off as incurred. Development expenditure is also written off, except where the directors are satisfied as to the technical, commercial and financial viability of individual projects. In such cases, the identifiable expenditure is capitalised as an intangible asset and amortised over the period during which the Company is expected to benefit. Until the company reaches commercialisation, no amortisation has been provided for.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Plant and machinery	4 - 5 years straight line
Office equipment	3 years straight line
Other property, plant and equipment	5 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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 profit or loss.

Impairment of assets

Assets, other than those measured at fair value, 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 Profit and Loss Account as described below.

Non-financial assets
At each balance sheet date, the company reviews its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.

If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. 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 for which the estimates of future cash flows have not been adjusted.

Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Provision is made for obsolete, slow-moving or defective items where appropriate.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, with original maturities of three months or less.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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 Company after deducting all of its liabilities.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs.

Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less.

Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

2. Employees

	2022
	Number
Monthly average number of persons employed by the Company during the period, including directors	10

3. Intangible assets

	Development costs		Total
	£		£
Cost
At 01 April 2021	0		0
Additions	600,201		600,201
Assets transferred from fellow subsidiary	1,910,875		1,910,875
At 31 March 2022	2,511,076		2,511,076
Accumulated amortisation
At 01 April 2021	0		0
Charge for the financial period	23,139		23,139
At 31 March 2022	23,139		23,139
Net book value
At 31 March 2022	2,487,937		2,487,937

On 30 March 2021, the trade, assets and certain liabilities of a fellow subsidiary were transferred to the company as part of a restructuring of the group's activities.

4. Tangible assets

	Plant and machinery		Office equipment		Other property, plant and equipment		Total
	£		£		£		£
Cost
At 01 April 2021	0		0		0		0
Additions	23,672		7,721		50,247		81,640
Disposals	( 10,211)		0		0		( 10,211)
Assets transferred from fellow subsidiary	7,279		4,314		1,316		12,909
At 31 March 2022	20,740		12,035		51,563		84,338
Accumulated depreciation
At 01 April 2021	0		0		0		0
Charge for the financial period	2,437		3,841		274		6,552
Disposals	( 1,646)		0		0		( 1,646)
At 31 March 2022	791		3,841		274		4,906
Net book value
At 31 March 2022	19,949		8,194		51,289		79,432

5. Stocks

	2022
	£
Stocks	173,501

6. Debtors

	2022
	£
Trade debtors	8,800
Other debtors	12,375
	21,175

7. Creditors: amounts falling due within one year

	2022
	£
Trade creditors	18,627
Amounts owed to Parent undertakings	800,431
Amounts owed to fellow subsidiaries	1,186,521
Other taxation and social security	8,580
Other creditors	16,491
	2,030,650

Intercompany loan balances are interest free and are repayable on demand.

8. Provision for liabilities

	2022
	£
Deferred tax	39,620

9. Called-up share capital

	2022
	£
Allotted, called-up and fully-paid
1 Ordinary share of £ 1.00	1

During the period the company issues 1 Ordinary share at par value.

10. Accruals and deferred incmoe

	2022
	£
Accruals and deferred income	(1,742,094)

Based on the technical and commercial progress of the company’s development project, the Directors are satisfied that there are no conditions whereby the grant would require to be repaid.

11. Ultimate controlling party

The ultimate controlling party as at 31 March 2022 is Quantum Leap Technologies (Holdings) Limited.