Hadean Supercomputing Ltd - Accounts to registrar (filleted) - small 17.3

REGISTERED NUMBER: 09808169 (England and Wales)

Unaudited Financial Statements

for the Period 1 November 2016 to 31 January 2018

for

Hadean Supercomputing Ltd

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

R M Mansoor

I Fox

V Bhargava

A L Mocatta

REGISTERED OFFICE:

4 Christopher Street

London

EC2A 2BS

REGISTERED NUMBER:

09808169 (England and Wales)

ACCOUNTANTS:

Grunberg & Co Limited

Chartered Accountants

5 Technology Park

Colindeep Lane

Colindale

London

NW9 6BX

FIXED ASSETS

Tangible assets

4

23,045

3,545

CURRENT ASSETS

Debtors

5

30,652

15,191

Cash at bank

498,017

1,916,486

528,669

1,931,677

CREDITORS

Amounts falling due within one year

6

114,884

51,553

NET CURRENT ASSETS

413,785

1,880,124

TOTAL ASSETS LESS CURRENT LIABILITIES

436,830

1,883,669

PROVISIONS FOR LIABILITIES

3,440

2,754

NET ASSETS

433,390

1,880,915

CAPITAL AND RESERVES

Called up share capital

25

25

Share premium

2,143,182

2,096,173

Fair value reserve

15,480

-

Retained earnings

(1,725,297

)

(215,283

)

SHAREHOLDERS' FUNDS

433,390

1,880,915

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 31 January 2018.

The members have not required the company to obtain an audit of its financial statements for the period ended 31 January 2018 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 1 March 2018 and were signed on its behalf by:

R M Mansoor - Director

1.	STATUTORY INFORMATION

Hadean Supercomputing 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.	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.

Tangible fixed assets

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

Fixtures and fittings

-

20% on cost

Computer equipment

-

25% on cost

Financial instruments

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors

Short term creditors are measured at transaction price.

Taxation

Taxation for the period 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 statement of financial position date.

Deferred tax

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

statement of 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 period 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, until such point as

when the project is able to clearly demonstrate with no uncertainty that is commercially viable, and will generate

future economic benefits, at which point it is recognised as an intangible asset.

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.

Share-based payments

Equity-settled share-based payments to employees and others providing similar services are measured at the fair

value of the equity instruments at the grant date. The fair value excludes the effect of non-market-based vesting

conditions. Details regarding the determination of the fair value of equity-settled share-based transactions are set

out in note 8.

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a

straight-line basis over the vesting period, based on the Company's estimate of equity instruments that will

eventually vest unless the exercise period commences immediately following the grant date, in which case the

entire fair value of the equity-settled share-based payment is expensed to the income statement. At each balance

sheet date, the Company revises its estimate of the number of equity instruments expected to vest as a result of the

effect of non-market-based vesting conditions. The impact of the revision of the original estimates, if any, is

recognised in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding

adjustment to equity reserves.

Equity-settled share-based payment transactions with parties other than employees are measured at the fair value

of the goods or services received, except where that fair value cannot be estimated reliably, in which case they are

measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or

the counterparty renders the service.

In respect of equity settled share based payments entered into or granted prior to the start of the financial period

where the accounting policies adopted did not require recognition of the fair value thereof annual charges in

respect to earlier periods are recognised as prior year adjustments to the opening position and reflected in the

comparative numbers where appropriate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 8 (2016 - 5 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 November 2016

583

3,591

4,174

Additions

760

25,593

26,353

Disposals

-

(1,500

)

(1,500

)

At 31 January 2018

1,343

27,684

29,027

DEPRECIATION

At 1 November 2016

119

510

629

Charge for period

233

5,245

5,478

Eliminated on disposal

-

(125

)

(125

)

At 31 January 2018

352

5,630

5,982

NET BOOK VALUE

At 31 January 2018

991

22,054

23,045

At 31 October 2016

464

3,081

3,545

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2016

£

£

Other debtors

9,594

6,907

VAT

15,394

8,284

Prepayments and accrued income

5,664

-

30,652

15,191

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2016

£

£

Trade creditors

25,310

11,001

Social security and other taxes

37,906

30,191

Other creditors

809

8,361

Accrued expenses

50,859

2,000

114,884

51,553

7.	SHARE-BASED PAYMENT TRANSACTIONS

The Company has a share option scheme for all employees of the Company. Options are exercisable at a price

agreed with HMRC prior to the date of grant. The options vest either on the date of grant or upon a schedule

over up to four years. Options are forfeited if the employee leaves the Company's employment before the options

have fully vested, although a short period is provided in which they may be exercised following such end of

employment to the extent that options have actually vested. The share option scheme also provides for the issue

of non-EMI options to employees where they do not qualify for EMI option grant or to non-employees. For any

non-EMI options granted under the share option scheme the exercise price is set at a price determined by the

Board. In addition, prior to the establishment of the scheme, certain advisers to the Company have been granted

ad hoc options exercisable at a price determined by the Board at the time of grant.

Details of the share options outstanding during the period ended 31st January 2018 and the year ended 31st

October 2016 are as follows:

2018

2018

2016

2016

Number of ordinary shares under option

Weighted average exercise price

Number of ordinary shares under option

Weighted average exercise price

£

£

Outstanding at beginning of year

74,253

0.0001

-

-

Issued in year

96,252

90,165

Exercised in year

(11,049

)

-

Forfeited in year

(22,049

)

(15,192

)

Expired in year

-

-

Outstanding at end of the year

137,407

2.3702

74,253

0.0001

The option outstanding at 31st January 2018 had a weighted average exercise price of £2.37 and a weighted

average remaining contractual life of 9 years. In the period to 31st January 2018 options were granted in

September and November 2017 and January 2018. The aggregate of the estimated fair value of these options

granted in the period to 31st January 2018 was £48,202.

The inputs to the Black-Scholes model are as follows:

2018

2016

Value at grant

£4.289

£0.01

Expected volatility

15.80%

17.70%

Expected life

10 years

10 years

Risk free interest rate

1.55%

1.50%

Expected dividend yield

0%

0%

Adjustment to reflect unquoted early stage

50%

50%

The Company recognised total expenses of £15,480 and £nil related to equity share-based payment transactions

in the financial period ending 31st January 2018 and the year ended 31st October 2016 respectively.

8.	FIRST YEAR ADOPTION

These are the first financial statements that comply with FRS 102 Section 1A small entities. The date of transition

is 3 October 2015.

On transition to FRS 102, the treatment for holiday pay provision was reviewed. In the prior period, under UK

GAAP, there was no requirement to recognise a provision for holidays earned, but not yet taken. Under FRS 102,

this has been revised such that a provision must be made for these due holidays. Accordingly, an increase in staff

costs of £2,754 has been recognised in the accounts for the prior period, as a transitional adjustment, decreasing

the retained earnings brought forward by a corresponding amount.

There were no other material adjustments made on transition to FRS 102.