Power Drive Efficiency Limited - Accounts to registrar (filleted) - small 23.1.2

REGISTERED NUMBER: 08980303 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2022

FOR

POWER DRIVE EFFICIENCY LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

B Krichevski

A Krenke

O A Evdokimenko

V Evdokimenko

REGISTERED OFFICE:

10 Jesus Lane

Cambridge

Cambridgeshire

CB5 8BA

REGISTERED NUMBER:

08980303 (England and Wales)

ACCOUNTANTS:

Thompson Taraz Rand Ltd

Chartered Accountants

10 Jesus Lane

Cambridge

Cambridgeshire

CB5 8BA

FIXED ASSETS

Intangible assets

5

4,890

10,740

CURRENT ASSETS

Debtors

6

5,412

5,412

Cash at bank

25,162

25,162

30,574

30,574

CREDITORS

Amounts falling due within one year

7

(166,906

)

(147,926

)

NET CURRENT LIABILITIES

(136,332

)

(117,352

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(131,442

)

(106,612

)

CREDITORS

Amounts falling due after more than one year

8

(600,404

)

(568,179

)

NET LIABILITIES

(731,846

)

(674,791

)

CAPITAL AND RESERVES

Called up share capital

11

105

105

Share premium

6,195

6,195

Equity reserves

18,366

18,366

Retained earnings

(756,512

)

(699,457

)

SHAREHOLDERS' FUNDS

(731,846

)

(674,791

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 April 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 April 2022 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 Profit and loss account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 19 December 2022 and were signed on its behalf by:

A Krenke - Director

1.	STATUTORY INFORMATION

Power Drive Efficiency Limited 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.

As at 30th April 2022 the company's liabilities exceeded its assets by £731,846 (2021: £674,791).These financial statements have been prepared on a going concern basis. The Directors reasonably anticipate that financial instruments outstanding at year-end may be converted to equity upon the company achieving its milestones and next equity investment round, or the maturity may be extended further. In the opinion of the Directors, there is also the reasonable possibility of the company achieving the aforesaid milestones and the investors continuing their support for the business. It is therefore appropriate to adopt the going concern basis of preparation.

Intangible assets

Intangible assets represent costs incurred in respect of patents and are amortised over their anticipated useful life of four years.

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.

Grant funding

Grant income of a revenue nature has been recognised in the profit and loss account in full in the year of receipt.

Financial instruments

The company has chosen to apply the recognition and measurement principles set out in sections 11 and 12 of FRS 102.

Basic financial assets, including trade and other debtors, cash and bank balances, 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.

Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies 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 receipts discounted at a market rate of interest.

Such assets and liabilities are subsequently carried at amortised cost, using the effective interest rate method.

Other Financial Liabilities

Compound financial instruments issued by the company's parent company comprise convertible loan notes that can be converted to share capital at the option of the holder, and the number of shares to be issued may vary with changes in their fair value.

The liability component of a compound financial instruments is initially recognised at the fair value of a similar liability that does not have an equity conversion option. The equity component is initially recognised at the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component.

Any directly attributable transaction costs are allocated to the liability and equity components in proportion to their initial carrying amounts. Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortised cost using the effective interest method.

The equity component of a compound financial instrument is not re-measured subsequent to initial recognition except on conversion or expiry.

Finance costs

Finance costs are charged to the profit and loss account over the duration of the debt instrument using the effective interest method so that the amount charged to profit and loss is at constant rate on the carrying amount.Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2021 - NIL).

5.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 May 2021

and 30 April 2022

53,103

AMORTISATION

At 1 May 2021

42,363

Charge for year

5,850

At 30 April 2022

48,213

NET BOOK VALUE

At 30 April 2022

4,890

At 30 April 2021

10,740

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Other debtors

5,412

5,412

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade creditors

1,200

1,200

Amounts owed to group undertakings

38,779

38,779

Other creditors

126,927

107,947

166,906

147,926

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Other creditors

600,404

568,179

9.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Convertible Loan Note

-

568,179

Liabilities held under convertible loan agreements are secured by way of a debenture over the assets of the Company.

10.	FINANCIAL INSTRUMENTS

The following convertible loans are shown within other creditors due in more than one year:

Convertible loan one: Principal amount of £147,608; interest of 7%. payable on maturity.

Convertible loan two: Principal amount of £140,000; interest of 7%. payable on maturity.

Convertible loan three: Principal amount is £232,000, of which £128,084 (2021: £128,084) has been drawn down at the balance sheet date. Interest of 2% is payable up to the maturity date in December 2018 on further draw downs.This balance is recorded at its carrying value as it is considered that to split out the equity component is not material given this loan has a maturity date of 1st December 2018.

Convertible loan four: Principal amount is £89,859, of which £44,929 (2021: £44,929) has been drawn down at the balance sheet date. Interest of 3% is payable up to the maturity date in April 2023 on further draw downs.

The principal loan amounts together with any accrued interest are repayable at any time after the expiry of the first anniversary of the draw down date up to the maturity dates of the loans. The loans may be converted into equity, with the number of ordinary shares issued in settlement being dependant on their fair value at the date of conversion.

The carrying value of the liability components at the balance sheet date excluding interest is £461,254 (2021: £461,254) which has been arrived at using a discount factor based on the effective interest rate for an equivalent instrument not containing an equity component.

Including interest the amount required to settle the convertible loans will amount to £599,475 (£2021: £567,250)

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

10,500

Ordinary

1p

105

105

12.	RELATED PARTY DISCLOSURES

During 2016 the company was loaned a total of £50,000 from a company which holds a particpating interest in the share capital of Power Drive Efficiency Ltd. No interest was charged on this advance.

The balance total balance outstanding on the intercompany account at the year end amounted to £38,779 (2021: £38,779) and in disclosed within amounts due to group undertakings within creditors.