1. Accounting policies

Basis of measurement and preparation of accounts

Accounting convention
The financial statements have been prepared under the historical cost convention, and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

Going concern
The financial statements have been prepared on a going concern basis notwithstanding the fact that the company has a deficiency on shareholders' funds at the end of the year. The directors consider this basis to be appropriate as the company has received a guarantee from the shareholders that the sufficient facilities will be available to fund its working capital requirements for a period of at least twelve months from the date these financial statements
were approved.

Turnover policy

Turnover represents the invoiced amount of goods sold during the year, net of Value Added Tax.

Tangible fixed assets depreciation policy

Depreciation is provided to write off the cost less estimated residual values of all fixed assets over their expected useful lives, at the following annual rates:

Office Equipment 25% on written down value

Other accounting policies

Going concern (continued)
Included in trade creditors are amounts totalling £141,000 (2015 - £85,200) owed to certain directors and advisors to the company for services rendered during the year. All of the individuals to whom the amounts are due have agreed to subscribe for new shares in the
company to the full value of the amounts due, net of VAT. This will be effected during the financial year 2016/17. Had the subscriptions taken place by 30th September 2016, the company's Balance Sheet would have been in a solvent position. With this in mind the directors believe it is appropriate to prepare the accounts on the going concern basis.

Stocks and work in progress
Stocks are stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each product to its present condition and location.

Grant income
Income from Grants is recognised on an accruals basis when there is reasonable assurance that the grants will be received.

Deferred taxation
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes.

Research and development
Expenditure on Research and Development is charged against income in the year in which it is incurred.

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments.
An equity instrument is any contact that evidences a residual interest in the assets of the company after deducting all of its liabilities.

2. Tangible assets

3. Debtors

4. Creditors: amounts falling due within one year

Included in trade creditors are amounts totalling £141,000 (2015 - £85,200) owed to certain directors and advisors to the company for services rendered during the year. All of the individuals to whom the
amounts are due have agreed to subscribe for new shares in the company to the full value of the amounts due, net of VAT. This will be effected during the financial year to 30th September 2017. Had the subscriptions taken place by 30th September 2016, the company's Balance Sheet would have been in a solvent position.

5. Called up share capital

Allotted, called up and paid

During the financial year, the company issued 5,614 fully paid up Ordinary E shares at a premium of £5.60 per share over and above the par value of £0.01 each.

6. Related party disclosures