POWERVAULT_LTD - Accounts

The directors present their annual report and financial statements for the period ended 31 December 2022.

The principal activity of the company continued to be that of the manufacture and sale of electrical energy storage devices.

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

Significant changes in equity and debt during the period and shortly after the year end:

The Directors are pleased to report that new equity capital of £3.5 million was raised during the period (and an additional £0.3 million has been raised since the period end). As a result, the loan notes and accumulated interest totalling £3.6 million, issued as part of the Future Fund financing in 2020, were converted into equity. We would like to thank the British Business Bank for their support during the Covid period. The remaining debt shown on Powervault’s balance sheet at 31st December 2022 of £232,371 (represented primarily by the outstanding balance on a loan from the Greater London Investment Fund) was repaid shortly after the period end. This leaves Powervault debt free and cash strong and well-positioned to take advantage of the market opportunities now available.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

For the financial period ended 31 December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

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.

The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Powervault Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 9, Garrick Road Industrial Estate, Irving Way, Hendon, London, NW9 6AQ.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The accounting period has been extended to incorporate the conversion of the convertible loan notes in December 2022.

Revenue is recognised at the fair value of the consideration received or receivable for goods 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.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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.

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

The tax expense represents the sum of the tax currently payable.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

The average monthly number of persons (including directors) employed by the company during the period was:

Included within other payables is a warranty provision of £105,906 (2021: £123,512) and deferred income of £2,500 (2021: £53,200).

As at the balance sheet date, there was a long term loan of £128,302 (2021: £233,962), this is secured against the assets of the company.

Other payables of £nil (2021: £3,333,739) represents Future Fund Convertible Loan note including accrued interest and a warranty provision of £193,253 (2021: £175,646).

52,775,868 new ordinary shares of £0.0001 were issued during the period. New capital of £3,516,286 was raised and the Future Fund Convertible Loan notes and accumulated interest, totalling £3,622,596, were converted into equity. These two transactions combined (£7,138,882) account for the increase in Share Capital of £5,277 and the increase in share premium of £7,133,604. After adjusting for the net loss during the period of -£1,630,651, these transactions have increased equity from minus (£1,523,624) at the end of Sept 2021 to plus £3,984,606 at 31st December 2022.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows: