HEARTFELT_TECHNOLOGIES_LT - Accounts

In accordance with section 444 of the Companies Act 2006, all of the members of the company have consented to the preparation of abridged financial statements pursuant to paragraph 1A of Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations (SI 2008/409)(b).

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 December 2023 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 year 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.

Heartfelt Technologies Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 320 Cambridge Science Park Milton Road, Cambridge, Cambridgeshire, CB4 0WG.

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.

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.

Tangible fixed assets 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.

Interests in subsidiary undertakings are recognised at cost.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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

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

On 20 July 2016 the company established the Heartfelt Technologies Limited Enterprise Management Incentives Share Option Scheme. The purpose of the scheme is to create an incentive to work for the company and to motivate employees to help the company achieve its business aims.

At 1 January 2023, 428,000 EMI Share Options were outstanding, 365,000 with an exercise price of £0.0001 and 63,000 with an exercise price of £1.30 per share. During the year, no EMI Share Options were granted, lapsed, cancelled or exercised. At 31 December 2023, 428,000 Share Options were outstanding.

The EMI Options granted become exercisable on grant.

The company also operates an unapproved Share Option scheme. At 1 January 2023, 45,000 Options were outstanding at an exercise price of £0.0001 per share. During the year 35,500 options were granted at an exercise price of £0.0001 per share, and 7,200 Options were granted at an exercise price of £1.30 per share. 18,500 options were exercised during the year. At 31 December 2023, 69,200 options were outstanding.