Smarttrade App Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 06205886 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2018

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

Dr A M Swift

K V H Vorland

REGISTERED OFFICE:

10-16, First Floor

Scrutton Street

London

EC2A 4RU

REGISTERED NUMBER:

06205886 (England and Wales)

ACCOUNTANTS:

Horizon Accounts Ltd

Stapleton House Second Floor

110 Clifton Street

London

EC2A 4HT

FIXED ASSETS

Intangible assets

5

675

825

Tangible assets

6

41

153

716

978

CURRENT ASSETS

Debtors

7

13,423

41,738

Cash at bank

5,453

11,832

18,876

53,570

CREDITORS

Amounts falling due within one year

8

29,305

105,770

NET CURRENT LIABILITIES

(10,429

)

(52,200

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(9,713

)

(51,222

)

CREDITORS

Amounts falling due after more than one year

9

86,015

-

NET LIABILITIES

(95,728

)

(51,222

)

CAPITAL AND RESERVES

Called up share capital

2

2

Share premium

1,095,741

966,366

Share option reserve

653,396

438,746

Retained earnings

(1,844,867

)

(1,456,336

)

SHAREHOLDERS' FUNDS

(95,728

)

(51,222

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 April 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 April 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 29 January 2019 and were signed on its behalf by:

Dr A M Swift - 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 2017 and 30 April 2018 the

fair value has been estimated as £3.18 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

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment

losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write

off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

Computer equipment - 33.33% on straight line

Office equipment - 33.33% on straight line

Financial instruments

The Company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances and investments in commercial

paper, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction,

where the transaction is measured at the present value of the future receipts discounted at a market rate of

interest. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective

evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount

and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The

impairment loss is recognised in the Income Statement.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised,

the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the

carrying amount would have been had the impairment not previously been recognised. The impairment reversal

is recognised in the Income Statement.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint

ventures, are initially measured at fair value, which is normally the transaction price.

Such assets are subsequently carried at fair value and the changes in fair value are recognised in, the Income

Statement, except that investments in equity instruments that are not publicly traded and whose fair values cannot

be measured reliably are measured at cost less impairment.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or

settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party

or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the

asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors, loans from fellow Group companies that are

classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing

transaction, where the debt instrument is measured at the present value of the future payments discounted at a

market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of

business from suppliers. Creditors are classified as current liabilities if payment is due within one year. If not,

they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and

subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is

discharged, cancelled or expires.

Taxation

Taxation for the year comprises current 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 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.

Research and development

Revenue 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.

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.

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.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid

investments that are readily convertible to a known amount of cash and are subject to an insignificant risk to

changes in value.

Share based payments

The company operates an equity-settled 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 3 (2017 - 4 ) .

5.	INTANGIBLE FIXED ASSETS

Intellectual

property

£

COST

At 1 May 2017

and 30 April 2018

1,500

AMORTISATION

At 1 May 2017

675

Amortisation for year

150

At 30 April 2018

825

NET BOOK VALUE

At 30 April 2018

675

At 30 April 2017

825

6.	TANGIBLE FIXED ASSETS

Office

Computer

equipment

equipment

Totals

£

£

£

COST

At 1 May 2017

and 30 April 2018

244

1,289

1,533

DEPRECIATION

At 1 May 2017

224

1,156

1,380

Charge for year

20

92

112

At 30 April 2018

244

1,248

1,492

NET BOOK VALUE

At 30 April 2018

-

41

41

At 30 April 2017

20

133

153

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.4.18

30.4.17

£

£

Trade debtors

7,853

7,406

Other debtors

5,570

34,332

13,423

41,738

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.4.18

30.4.17

£

£

Trade creditors

18,909

16,882

Taxation and social security

8,829

4,897

Other creditors

1,567

83,991

29,305

105,770

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30.4.18

30.4.17

£

£

Other creditors

86,015

-

10.	RELATED PARTY DISCLOSURES

During the year, one of the director's advanced the company £500. At the date of the financial statements, the

company owed the director £741 (2017 - £241). The loans are interest free and repayable on demand.

Included in Other creditors is a loan of £50,000 from a shareholder with a beneficial interest in the company. At

the end of the year, interest of £4,000 (2017 - £4,000) 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. At the date of

the financial statements, the company owed £60,334 (2017 - £56,334) to the shareholder.

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

(2016 - £250) at a rate of 1% has accrued. The loan is repayable in full in the event the company completes an

equity raise or raises funds from any other source and this loan has seniority in terms of repayment above all

other creditors of the company except for HMRC. At the date of the financial statements, the company owed

£25,681 (2017 - £25,431) to the director.

11.	ULTIMATE CONTROLLING PARTY

During the year there is no ultimate controlling party.

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 988,000 EMI qualifying share options to four employees, but for which

303,000 were granted on existing founder shares leading to a net future dilution of 685,000 shares. During the

year, 67,500 share options vested and no share options had been exercised or lapsed. Share options are vested

monthly over 3 years from the grant date.

During the year, 3,500 Warrants to subscribe for Ordinary shares were issued. As at the date of the Statement of

Financial Position, 44,500 Warrants remained in issue. Warrant holders subscription rights are contingent upon

an Exercise Event set out in the Warrant Agreement.