Smarttrade App Ltd - Accounts to registrar - small 17.2

REGISTERED NUMBER: 06205886 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2017

FOR

SMARTTRADE APP LTD

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

K Van Schreven

C M Woolgar

REGISTERED OFFICE:

10-16, First Floor

Scrutton Street

London

EC2A 4RU

REGISTERED NUMBER:

06205886 (England and Wales)

ACCOUNTANTS:

Horizon Accounts Limited

Stapleton House

Block A, 2nd Floor

110 Clifton Street

London

EC2A 4HT

FIXED ASSETS

Intangible assets

5

825

975

Tangible assets

6

153

524

978

1,499

CURRENT ASSETS

Debtors

7

41,738

55,463

Cash at bank

11,832

2,765

53,570

58,228

CREDITORS

Amounts falling due within one year

8

105,770

90,424

NET CURRENT LIABILITIES

(52,200

)

(32,196

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(51,222

)

(30,697

)

CAPITAL AND RESERVES

Called up share capital

2

2

Share premium

966,366

759,410

Share option reserve

9

438,746

268,414

Retained earnings

(1,456,336

)

(1,058,523

)

SHAREHOLDERS' FUNDS

(51,222

)

(30,697

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 April 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 April 2017 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 of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 21 September 2017 and were signed on its behalf by:

K Van Schreven - Director

1.	STATUTORY INFORMATION

Smarttrade App Ltd 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 the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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.

Significant judgements and estimates

Share based payments as set out in note 9 to the accounts have been made to employees of the company. As

disclosed in the Share Based Payments accounting policy note below, the fair value of any vested share option is

recognised in the income statement and for the accounting periods ending 30 April 2016 and 30 April 2017 the

fair value has been estimated as £1.64 per share. This is based on the value of Ordinary shares issued.

There have been no other significant judgements or estimates applied to the numbers contained within these

financial statements.

Turnover

Turnover represents net invoiced sales of services, excluding value added tax.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Intellectual property are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Office equipment

-

33.33% on straight line

Computer equipment

-

33.33% on straight line

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that that have been enacted or

substantively enacted by the statement of financial position date.

The tax credit disclosed in the income statement represents the surrender of corporation tax losses for research

and development tax credits.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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

statement of financial position 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Other income

Other income relates to income received from desk rental.

Going concern

The financial statements have been prepared on the going concern basis. The company incurred losses during the

year and the directors are aware that the balance sheet reflects net liabilities. However the directors have a

reasonable expectation that the company will begin to trade profitably once the research and development stage

has been completed, giving the company adequate resources to continue operating for the foreseeable future. The

directors are therefore of the opinion that they should continue to adopt the going concern basis of accounting in

preparing the financial statements.

Share based payments

The company operates an equity-settled, cash-based compensation plan. The fair value of the employee services

received in exchange for the grant of the options is recognised as an expense. The total amount to be expensed

over the vesting period is determined by reference to the fair value of the options granted, excluding the impact

of any non-market vesting conditions (for example, profitability and sales growth targets). Non-market vesting

conditions are included in assumptions about the number of options that are expected to vest. At each financial

position date, the entity revises its estimates of the number of options that are expected to vest. It recognises the

impact of the revision to original estimates, if any, in the income statement. The credit entry is taken to reserves

because the share options are equity-settled.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 4 (2016 - 5 ) .

5.	INTANGIBLE FIXED ASSETS

Intellectual

property

£

COST

At 1 May 2016

and 30 April 2017

1,500

AMORTISATION

At 1 May 2016

525

Amortisation for year

150

At 30 April 2017

675

NET BOOK VALUE

At 30 April 2017

825

At 30 April 2016

975

6.	TANGIBLE FIXED ASSETS

Office

Computer

equipment

equipment

Totals

£

£

£

COST

At 1 May 2016

and 30 April 2017

244

1,289

1,533

DEPRECIATION

At 1 May 2016

143

866

1,009

Charge for year

81

290

371

At 30 April 2017

224

1,156

1,380

NET BOOK VALUE

At 30 April 2017

20

133

153

At 30 April 2016

101

423

524

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.4.17

30.4.16

£

£

Trade debtors

7,406

18,081

Other debtors

34,332

37,382

41,738

55,463

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.4.17

30.4.16

£

£

Trade creditors

16,882

316

Taxation and social security

4,897

8,659

Other creditors

83,991

81,449

105,770

90,424

Included in Other creditors is a loan of £50,000 from an investor. At the end of the year, interest of £4,000 (2016

- £2,334) at a rate of 8% has accrued on the basis that the loan was not repaid by the maturity date of 29th

January 2016. The investor has the right to convert the principal and accrued interest to equity at the prevailing

share price on the loan start date of £1.0284 per share. The loan is still outstanding as at the date of this report.

Also included in Other creditors is a loan of £25,000 from an employee. At the end of the year, interest of £250

(2016 - £181) at a rate of 1% has accrued. The loan is still outstanding as at the date of this report and has

seniority in terms of repayment from any funds raised in the future.

9.

RESERVES

Share

option

reserve

£

At 1 May 2016

268,414

Recognition of option costs

170,332

At 30 April 2017

438,746

10.	RELATED PARTY DISCLOSURES

Included in other creditors amounts falling due within one year is an amount of £241 (2016 - £407 owed) owing

to the directors of the company. The amount is repayable on demand.

11.	POST BALANCE SHEET EVENTS

On 13 June 2017, the company issued 3,049 ordinary shares of nominal value £0.000001 each for a total

consideration of £5,000.

On 20 June 2017, the company issued a further 6,087 ordinary shares of nominal value of £0.000001 each for a

total consideration of £9,983.

On 18 July 2017, the company issued 3,048 ordinary shares of nominal value £0.000001 each for a total

consideration of £4,999.

On 8 August 2017, the company issued 3,048 ordinary shares of nominal value £0.000001 each for a total

consideration of £4,999.

12.	SHARE-BASED PAYMENT TRANSACTIONS

The company operates an EMI qualifying share option scheme. As at the date of the Statement of Financial

Position, the company had granted 680,000 EMI qualifying share options to three employees. During the year,

no share options had been exercised or lapsed. An amount of 562,500 shares had vested at the year-end.

Share options are vested monthly over 3 years from the grant date.

At the end of the year 41,000 warrants to subscribe for Ordinary shares remained in issue. Warrant holders

subscription rights are contingent upon an Exercise Event set out in the Warrant Agreement.

13.	FIRST YEAR ADOPTION

This is the first year that the company has presented its results and financial position in accordance with FRS

102. The last financial statements under UK GAAP were for the year ended 30 April 2016. The date that the

company transitioned to FRS 102 was 1 May 2015.

Transitional relief

On transition to FRS 102, the company has taken advantage of the following transitional relief:

•

not to apply the requirements of Section 26 Share-based Payment.