Pertinax Pharma Limited - Accounts to registrar - small 17.2

REGISTERED NUMBER: 09557364 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2016

FOR

PERTINAX PHARMA LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

A S C Cooper

Mrs R M Darby

S J Gibson

Mercia Fund Management (Nominees) Limite

Dr M E Redmond

REGISTERED OFFICE:

Future Space

UWE North Gate, Filton Road

Stoke Gifford

BRISTOL

Avon

BS34 8QZ

REGISTERED NUMBER:

09557364 (England and Wales)

AUDITORS:

Grant Thornton UK LLP

Chartered Accountants and Statutory Auditor

Hartwell House

55-61 Victoria Street

BRISTOL

BS1 6FT

SOLICITORS:

Bristows LLP

100 Victoria Embankment

London

EC4Y 0DH

FIXED ASSETS

Tangible assets

4

60,166

-

CURRENT ASSETS

Debtors

5

47,322

-

Cash at bank and in hand

139,918

10

187,240

10

CREDITORS

Amounts falling due within one year

6

97,150

-

NET CURRENT ASSETS

90,090

10

TOTAL ASSETS LESS CURRENT LIABILITIES

150,256

10

CAPITAL AND RESERVES

Called up share capital

8

14

10

Share premium

9

425,013

-

Retained earnings

9

(274,771

)

-

SHAREHOLDERS' FUNDS

150,256

10

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 27 September 2017 and were signed on its behalf by:

S J Gibson - Director

1.	STATUTORY INFORMATION

Pertinax Pharma 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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. The financial statements have been prepared under the historical cost convention.

The company will require additional funding from investors to support the continued growth of the company and

the Directors are confident this will be achieved.

Tangible fixed assets

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

Plant and machinery

-

50% on cost and 33% on cost

Computer equipment

-

33% on cost

Government grants

Income from grants is credited to the income statement to match the related costs for which the grant

is received.

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 have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

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

sheet 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.

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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Going concern

In determining the appropriate basis of preparation of the financial statements, the directors are required to

consider whether the company can continue in operational existence for the foreseeable future.

The Company is currently in the early stages of commercialising its technology and has, to date, been in the pre

revenue phase of its development. Significant investment has been made in research, development and protection

of the company's intellectual property with a proportion of this investment being through grant funding. This

grant funding has now been fully utilised and further operating losses are anticipated in the future as this

investment continues.

As at 31 December 2016, the Company had a cash balance of £139,918 and, subsequent to the year end, 39,000

£0.01 A Ordinary Shares were issued raising additional capital of £625,000. However, the Company's cash flow

forecasts indicate that further cash funding will be required prior to the end of 2017. The directors believe that

the required additional funding will be obtained based on the continuing good technical and commercial progress

the Company is making. At the date of approval of these financial statements, the Company is actively engaged

in the process of fundraising with both new and existing investors, albeit at an early stage. There is however no

contractual certainty at this stage that any further funding from investors will occur.

It is on this basis that the directors consider it appropriate to prepare the financial statements on the going

concern basis. The financial statements do not include the adjustments that would result if the company was

unable to continue as a going concern.

Income recognition

Income is recognised when the amount can be reliably measured and it is probable that the amount

will be received.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2 .

4.	TANGIBLE FIXED ASSETS

Plant and

Computer

machinery

equipment

Totals

£

£

£

COST

Additions

52,489

11,939

64,428

At 31 December 2016

52,489

11,939

64,428

DEPRECIATION

Charge for year

3,155

1,107

4,262

At 31 December 2016

3,155

1,107

4,262

NET BOOK VALUE

At 31 December 2016

49,334

10,832

60,166

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2016

2015

£

£

Other debtors

47,322

-

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2016

2015

£

£

Trade creditors

36,306

-

Taxation and social security

3,184

-

Other creditors

57,660

-

97,150

-

7.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2016

2015

£

£

Within one year

52,415

-

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2016

2015

value:

£

£

NIL

Ordinary

1p

-

10

100,000

Ordinary 0.0001

0.01p

10

-

36,958

A Ordinary

0.01p

4

-

14

10

Allotted and issued:

Number:

Class:

Nominal

2016

2015

value:

£

£

100,000

Ordinary 0.0001

0.01p

10

-

36,958

A Ordinary

0.01p

4

-

14

-

The following shares were issued during the year:

36,958 A Ordinary shares of 0.01p for cash of £425,017.

9.

RESERVES

Retained

Share

earnings

premium

Totals

£

£

£

Deficit for the year

(274,771

)

-

(274,771

)

Cash share issue

-

425,013

425,013

At 31 December 2016

(274,771

)

425,013

150,242

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Emphasis of matter - going concern

In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of

the disclosure made in note 2 to the financial statements concerning the company's ability to continue as a going

concern. The company incurred a net loss of £274,771 during the year ended 31 December 2016 and, at that

date, the company's total assets exceeded its total liabilities by £150,256 and it had net current assets of £90,090.

Management forecasts show that the company will require further funding by the end of 2017.

Management believe that the required funding will be obtained and are actively engaged in the process of

fundraising with both new and existing investors.

These conditions, along with the other matters explained in note 2 to the financial statements, indicate the

existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a

going concern. The financial statements do not include the adjustments that would result if the company was

unable to continue as a going concern.

Tim Lincoln (Senior Statutory Auditor)

for and on behalf of Grant Thornton UK LLP

11.	RELATED PARTY DISCLOSURES

During the year Cooper Ventures Ltd, a company in which Ashley Cooper is a director, raised invoices of

£65,686 to Pertinax Pharma Limited. At the year end a balance of £4,541 was included within creditors.

During the year Brosniach Ventures Ltd, a company in which Stuart Gibson is a director, raised invoices of

£61,875 to Pertinax Pharma Limited. At the year end a balance of £4,845 was included within creditors.

During the year, Dr Michele Redmond raised invoices of £27,300 to Pertinax Pharma Limited. There was no

outstanding balance at the year end.

During the year, Mercia Fund Management raised invoices of £3,831 for non-Exec director fees and £6,000 for

management fees. There was no outstanding balance at the year end.

12.	POST BALANCE SHEET EVENTS

On 15 March 2017 the company issued a total of 39,000 A Ordinary £0.0001 Shares to existing shareholders

raising a total of £625,000.