TIDMCTEA
RNS Number : 2246B
Catenae Innovation PLC
30 September 2022
30 September 2022
Catenae Innovation PLC
("Catenae", the "Company" or the "Group")
Final Results
Catenae Innovation PLC (AIM: CTEA), the AIM quoted provider of
digital media and technology, announces its full year audited
results for the year ended 30 September 2021.
Financial overview
-- The Group made a net loss for the year of GBP1,246,948 (2020:
GBP769,186). Revenues for the year were GBP30,210 (2020:
GBP14,948).
-- The Group has a statement of financial position at the
year-end showing net assets of GBP381,926 (2020: GBP502,427).
Operational overview
-- Secured an initial contract with the Saxavord Space Port.
-- Awarded ISO 27001 after an audit on behalf of the International Standards Organisation (ISO).
-- Awarded a Cyber Essentials accreditation.
Posting of Accounts
The Reports and Accounts of Catenae Innovation Plc have been
posted to shareholders.
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation. The person who arranged for
release of this announcement on behalf of the Company was Guy
Meyer, Chief Executive Officer of the Company and the Directors of
the Company are responsible for the release of this
announcement.
For further information please contact:
+44 (0)191 580
Catenae Innovation PLC 8545
Guy Meyer, Chief Executive Officer
+44 (0)20 7213
Cairn Financial Advisers LLP (Nominated Adviser) 0880
Liam Murray / Jo Turner
+44 (0)20 7186
Shard Capital Partners LLP (Broker) 9952
Damon Heath
+44 (0)20 3004
Yellow Jersey PR (PR & IR) 9512
Sarah Hollins / James Lingfield
Notes to Editors:
About Catenae Innovation PLC
Catenae Innovation is an AIM quoted provider of digital media
and technology services. Catenae use the power of blockchain to
deliver solutions where its people-centric technology enables trust
and certainty allowing organisations to gain better control over
their operations, manage staff and safely welcome customers.
www.catenaeinnovation.com
Chairman's Statement
Business and performance review
Catenae has had a trading year of mixed fortunes. The business,
in the face of the continued pandemic, innovated its technologies
and participated in various commercial projects across multiple
sectors. We also engaged with the UK government in a consultation
process about the proposed Digital Identity Policy which is
ongoing.
In January, following an extensive review of the Company's
organisational and security processes, the Company was awarded ISO
27001 after an audit on behalf of the International Standards
Organisation (ISO). The Company was also awarded a Cyber Essentials
accreditation. The Cyber Essentials scheme is operated on behalf of
the National Cyber Security Centre (NCSC). In our sector, customers
expect software providers to provide data management reassurance
which these accreditations do.
During the year, the Company secured an initial contract with
the Saxavord Space Port. This has developed into a more substantive
and continuing engagement which the Directors anticipate will lead
to further business results.
While we acknowledge that the commercial benefits from the
acquisition of Hyperneph Software Ltd. have not materialised as
promised, the board have taken a robust approach to remedying
this.
The Company continued to manage its finances prudently to ensure
business continuity, with a subscription in January 2021 that
raised GBP1 million and over the year there were conversions of
existing liabilities, issues of warrants and warrant exercises that
resulted in a much improved balance sheet.
Finally, I would like to acknowledge our whole team for their
commitment and tenacity in pursuing every opportunity to bring new
business into the Company.
Board changes
There were no board changes over the year.
Financial Overview
The Company made a net loss for the year of GBP1,246,948 (2020:
GBP769,186). Revenues for the year were GBP30,210 (2020:
GBP14,948).
The Company has a statement of financial position at the
year-end showing net assets of GBP381,926 (2020: GBP502,427).
Working capital and fund raisings
During the year, the Company issued 60,129,236 new ordinary
shares for a total gross consideration of GBP1,192,386 of which
GBP1,119,683 was received in cash and GBP72,704 to settle
liabilities.
Brian Thompson
Chairman
Consolidated statement of comprehensive income for the year
ended 30 September 2021
Note 2021 2020
GBP GBP
Revenue 3 30,210 14,948
Cost of sales (14,400)
Gross profit 15,810 14,948
Administrative expenses 5 (939,027) (759,108)
Impairment losses (318,629) -
Loss from operations (1,241,846) (744,160)
Net finance expense 7 10 (25,026)
Loss before taxation (1,241,836) (769,186)
Taxation 9 (5,112) -
Loss from continuing operations (1,246,948) (769,186)
Total comprehensive loss for
the year (1,246,948) (769,186)
-------------------------- -------------------
Owners of the parent (1,257,149) (769,186)
Non-controlling interest 10,201 -
(1,246,948) (769,186)
Basic and diluted loss per
share (pence) 11 (0.49) (0.65)
Consolidated Statement of financial position at 30 September
2021
Note 2021 2020
GBP GBP
Non-current assets
Property, plant and equipment 12 6,828 -
Intangible assets 13 1 1
6,829 1
Current assets
Trade and other receivables 15 45,236 20,604
Cash and other equivalents 605,082 714,043
------------------------ --------------------
650,318 734,647
Current liabilities
Trade and other payables 16 (275,221) (214,221)
Interest bearing loans 17 -
------------------------ --------------------
(275,221) (214,221)
Non current liabilities
Interest bearing loans 17 - (18,000)
------------------------ --------------------
Total liabilities (275,221) (232,221)
------------------------ --------------------
Net assets / (liabilities) 381,926 502,427
------------------------ --------------------
Capital and reserves
Ordinary share capital 19 562,441 442,183
Deferred share capital 19 3,159,130 3,159,130
Share premium account 19,657,821 18,652,949
Share reserve -83,333 -83,333
Merger reserve 11,119,585 11,119,585
Capital redemption reserve 2,732,904 2,732,904
Retained Losses -36,778,140 -35,520,991
------------------------ --------------------
Capital and reserves attributable
to the owners of Catenae
Innovation Plc 370,408 502,427
------------------------ --------------------
Non-controlling interest 11,518 -
------------------------ --------------------
Total equity 381,926 502,427
------------------------ --------------------
The financial statements were approved by the Board and
authorised for issue on 28 September 2022
Brian Thompson
Chairman
Consolidated statement of cash flows for the year ended 30
September 2021
Cash flow from operating activities Note 2021 2020
GBP GBP
Loss for the year (1,246,948) (769,186)
Adjustments for:
Impairment of investment 318,629 -
Net bank and other interest charges (10) 25,026
Services settled by the issue of shares 72,704 -
Issue of share options and warrants -
charge
Net cash outflow before changes in
working capital (855,625) (744,160)
(Increase)/Decrease in trade and other
receivables (24,633) (2,344)
(Decrease) / Increase in trade and
other payables (112,896) (62,210)
Cash outflow from operations (993,154) (807, 714)
Interest received 10 28
Interest paid (25,054)
-------------------------- -------------------
Net cash flows from operating activities (993,144) (833,740)
-------------------------- -------------------
Investing activities
Investment in subsidiary (217,500) -
-------------------------- -------------------
Net cash flows from investing activities (217,500) -
-------------------------- -------------------
Financing activities
Issue of ordinary share capital 1,119,683 1,481,855
Repayment of loan (18,000) (96,580)
New loans raised 133,000
Net cash flows from financing activities 1,101,683 1,518,275
Net (decrease) / increase in cash (108,961) 684,535
Cash and cash equivalents at beginning
of year 714,043 29,508
Cash and cash equivalents at end
of year 605,082 714,043
During the year GBP72,704 of trade and other payables and loans
were converted into equity in non-cash transactions.
Consolidated statement of changes in equity for the year ended
30 September 2021
Deferred
Share Share Shares Other Retained Non-controlling Total Equity
Capital Premium / Shares Reserves Earnings interest
to be
issued
GBP GBP GBP GBP GBP GBP GBP
Balance at
30 Sept 2019 3,223,601 17,031,971 - 13,769,156 (34,751,805) - (727,077)
Loss for the
year - - - - (769,186) - (769,186)
Capital
Reduction (3,159,130) - 3,159,130 - - - -
Share capital
issued 377,712 1,683,978 - - - - 2,061,690
Share issue
costs - (63,000) - - - - (63,000)
Balance at
30 Sept 2020 442,183 18,652,949 3,159,130 13,769,156 (35,520,991) - 502,427
Loss for the
year - - - (1,257,149) 10,201 (1,246,948)
Non-controlling
share of net
assets on
acquisition - - - - - 1,317 1,317
Share capital
issued 120,258 1,073,452 - - - - 1,193,710
Share issue
costs - (68,580) - - - (68,580)
Balance at
30 Sept 2021 562,441 19,657,821 3,159,130 13,769,156 (36,778,140) 11,518 381,926
The other reserves relate to the merger reserve, share reserve
and the capital redemption reserve.
Company statement of financial position at 30 September 2021
Note 2021 2020
GBP GBP
Non-current assets
Intangible assets 1 1
Investments 14 - -
------------------------ ------------------------
1 1
Current assets
Trade and other receivables 15 45,236 20,604
Cash and other equivalents 539,842 714,043
------------------------ ------------------------
585,078 734,647
Current liabilities
Trade and other payables 16 (226,659) (214,221)
Interest bearing loans 17 -
------------------------ ------------------------
(226,659) (214,221)
Non current liabilities
Interest bearing loans 17 - (18,000)
------------------------ ------------------------
Total liabilities (226,659) (232,221)
------------------------ ------------------------
Net assets / (liabilities) 358,420 502,427
------------------------ ------------------------
Capital and reserves
Ordinary share capital 19 562,441 442,183
Deferred share capital 19 3,159,130 3,159,130
Share premium account 19,657,821 18,652,949
Share reserve (83,333) (83,333)
Merger reserve 11,119,585 11,119,585
Capital redemption reserve 2,732,904 2,732,904
Retained Losses (36,790,128) (35,520,991)
------------------------ --------------------------
Shareholders' funds 358,420 502,427
------------------------ --------------------------
Catenae Innovation Plc has taken advantage of s408 of Companies
Act 2006 and has not included its own profit and loss account in
the financial statements. The Company's loss for the year after tax
was GBP1,269,137 (2020: GBP769,186).
The financial statements were approved by the Board and
authorised for issue on 28 September 2022
Brian Thompson
Chairman
Company statement of cash flows for the year ended 30 September
2021
Cash flow from operating activities Note 2021 2020
GBP GBP
Loss for the year (1,269,137) (769,186)
Adjustments for:
Impairment of investment 320,000 -
Net bank and other interest charges (10) 25,026
Services settled by the issue of shares 72,704 -
Issue of share options and warrants - -
charge
Net cash outflow before changes in working
capital (876,443) (744,160)
(Increase)/Decrease in trade and other
receivables (24,633) (2,344)
(Decrease) / Increase in trade and other
payables (157,318) (62,210)
Cash outflow from operations (1,058,394) (808,714)
Interest received 10 28
Interest paid - (25,054)
Net cash flows from operating activities (1,058,384) (833,740)
Investing activities
Investment in subsidiary (217,500) -
------------------------- --------------------
Net cash flows from investing activities (217,500) -
------------------------- --------------------
Financing activities
Issue of ordinary share capital 1,119,683 1,481,855
Repayment of loan (18,000) (96,580)
New loans raised - 133,000
Net cash flows from financing activities 1,101,683 1,518,275
Net (decrease) / increase in cash (174,201) 684,535
Cash and cash equivalents at beginning
of year 714,043 29,508
Cash and cash equivalents at end
of year 539,842 714,043
During the year GBP72,704 of trade and other payables and loans
were converted into equity in non-cash transactions.
Company statement of changes in equity for the year ended 30
September 2021
Deferred
Share Share Premium Shares / Other Retained Total
Capital Shares to Reserves Earnings Equity
be issued
GBP GBP GBP GBP GBP GBP
=========== =============== =========== ================= ============== ===============
Balance at 30 Sept
2019 3,223,601 17,031,971 - 13,769,156 (34,751,805) (727,077)
=========== =============== =========== ================= ============== ===============
Loss for the year - - - - (769,186) (769,186)
Capital
Reduction (3,159,130) - 3,159,130 - - -
Share capital issued 377,712 1,683,978 - - - 2,061,690
Share issue costs - (63,000) - - - (63,000)
----------- --------------- ----------- ----------------- -------------- ---------------
Balance at 30 Sept
2020 442,183 18,652,949 3,159,130 13,769,156 (35,520,991) 502,427
----------- --------------- ----------- ----------------- -------------- ---------------
Loss for the year - - - (1,269,137) (1,269,137)
Capital Reduction - - - - - -
Share capital issued 120,258 1,073,452 - - - 1,193,710
Share issue costs - (68,580) - - - (68,580)
=========== =============== =========== ================= ============== ===============
Balance at 30 Sept
2021 562,441 19,657,821 3,159,130 13,769,156 (36,790,128) 358,420
=========== =============== =========== ================= ============== ===============
The other reserves relate to the merger reserve, share reserve
and the capital redemption reserve.
Notes to the consolidated financial statements for the year
ended 30 September 2021
The principal activity of the Group is the provision of
multimedia and technology solutions.
Catenae Innovation Plc is incorporated in the United Kingdom
with registration number 04689130. Catenae Innovation Plc is
domiciled in the United Kingdom and has its registered office at 27
Old Gloucester Street, London WC1N 2AX. The principal place of
business for the Company is 26-27 Lansdowne Terrace, Gosforth,
Newcastle Upon Tyne, NE3 1HP.
Catenae Innovation Plc is a public limited company, limited by
shares and its shares are quoted on the AIM market of the London
Stock Exchange.
Catenae Innovation Plc's financial statements are presented in
Pounds Sterling.
1. Principal accounting policies
The principal accounting policies applied in the preparation of
these consolidated financial statements are set out below. These
policies have been consistently applied to all the period presented
unless otherwise stated.
Statement of compliance
These consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards
(IFRSs), International Accounting Standards (IASs) and
International Financial Reporting Interpretations Committee (IFRIC)
interpretations (collectively 'IFRSs') as adopted for use in the
European Union and as issued by the International Accounting
Standards Board and with those parts of the Companies Act 2006
applicable to companies reporting under IFRS.
Basis of preparation and consolidation
The group financial statements consolidate those of the Company
and its subsidiaries (together referred to as the "Group"). The
Group and separate parent company financial statements have been
prepared under the historic cost convention, except for, where
applicable, the revaluation of financial assets and liabilities at
fair value through profit or loss.
The Group financial statements consolidate those of the Company
and of its subsidiary undertakings drawn up to 30 September 2021.
Subsidiaries are entities over which the Group has the power to
control the financial and operating policies so as to obtain
benefits from its activities. The Group obtains and exercises
control through voting rights.
Amounts reported in the financial statements of subsidiaries
have been adjusted where necessary to ensure consistency with the
accounting policies adopted by the Group. The trading results of
subsidiaries acquired or disposed of during the year are included
in the consolidated statement of comprehensive income from the
effective date of acquisition or up to the effective date of
disposal, as appropriate.
All intra-Group transactions, balances, income and expenditure
are eliminated on consolidation.
Going concern
The Company's business activities, together with the factors
likely to affect its future development, performance and position
are set out in the Chairman's statement and below. The financial
position of the Group, its cash flows, liquidity position and
borrowing facilities are described in the financial statements. In
addition, note 18 to the financial statements includes the Group's
objectives, policies and processes for managing its capital; its
financial risk management objectives; details of its financial
instruments; and exposures to credit risk and liquidity risk.
The net asset position as at 30 September 2021, being the
Group's financial year-end, was GBP381,926. Subsequent to the
reporting date, the Board has been able to agree additional funding
in the form of a convertible loan for GBP250,000 from Sanderson
Capital Partners Ltd.
The Directors note that the World Health Organisation declared a
pandemic relating to COVID-19 on 11 March 2020, and social
distancing measures were introduced in the UK during March 2020.
The Directors have assessed the impact of incorporating additional
COVID-19 risk factors in the Going Concern assessment over a period
of 18 months after the signing of these financial statements.
Key assumptions considered by management when assessing going
concern include adjusting management best estimate of forecasted
performance for factors including the length and extent of current
lockdown restrictions ease and utilisation of relevant government
support schemes. These have been estimated for their respective
impacts on the Group's revenues, fixed and variable cost and
resultant expected cash flow requirements.
The Group's forecasts and projections, taking into account
reasonable estimate of a possible downturn in trading performance
arising from the COVID-19 outbreak, show that the Group has
sufficient financial resources for the going concern period. The
Group does not believe that the COVID-19 outbreak represents a
material uncertainty about the entity's ability to continue as a
going concern. Accordingly, the Directors have adopted the going
concern basis in preparing these consolidated financial
statements.
Revenue recognition
The Group provides software licencing and support services.
The weighting of these and pricing of these services (which
drives the revenue recognition) depends on the service level
required by the client, and on the commercial imperatives and
pricing sensitivities of the client.
The contractual performance obligations will typically be
embedded in an agreement with the client.
Where that agreement is detailed, the revenue recognition will
follow the allocation of fees and revenues against the completion
of the agreed performance milestones in the accounting period.
Where the agreement is not specific, the revenue recognition
will be in proportion to the completion of performance milestones
in the relevant accounting period against the internal costings
prepared in advance for each project.
(i) Software licencing contracts
Revenue from software licencing contracts is recognised when the
customer takes possession of and accepts the software licence
products which is the point in time when the customer has the
ability to direct the use of the product and obtain substantially
all of the benefits of the products.
(ii) Ongoing support and maintenance contracts
Revenue from ongoing support and maintenance contracts is
recognised over the contractual term when the customer
simultaneously receives and consumes the benefits provided by the
Group's performance, as the Group performs. The Group recognises
contract liabilities for any revenue not yet provided to the
customer as of the year end.
Research and development
Expenditure on research activities is recognised as an expense
in the period in which it is incurred. An internally generated
intangible asset arising from the Group's development activity is
recognised only if all the following conditions are met:
-- an asset is created that can be identified (such as a website);
-- it is probable that the asset created will generate future economic benefits: and,
-- the development cost of the asset can be measured reliably.
Internally-generated intangible assets are amortised on a
straight-line basis over their useful lives. Where no
internally-generated intangible asset can be recognised,
development expenditure is recognised as an expense in the period
in which it is incurred.
Intangible assets
Externally acquired intangible assets
Externally acquired intangible assets are initially recognised
at cost and subsequently amortised on a straight-line basis over
their estimated useful economic lives. The amortisation expense is
included within the other administrative expenses line of the
statement of comprehensive income.
Intangible assets are recognised on business combinations if
they are separable from the acquired entity or give rise to other
contractual/legal rights.
Business combinations and goodwill
The Group accounts for business combinations using the
acquisition method when control is transferred to the Group.. The
consideration transferred in a business combination is measured at
fair value, which is calculated as the sum of the acquisition-date
fair values of the assets transferred by the Group, liabilities
incurred by the Group to the former owners of the acquiree and the
equity interests issued by the Group in exchange for control of the
acquiree. Acquisition-related costs are recognised in the
consolidated statement of profit or loss as incurred. Any goodwill
that arises is tested annually for impairment. Any gain on a
bargain purchase is recognised in consolidated statement of profit
or loss immediately.
Property, plant and equipment
Plant, machinery, fixtures and fittings are stated at historical
cost less accumulated depreciation and accumulated impairment loss.
Depreciation is recognised so as to write off the cost or valuation
of assets less their residual values over their useful lives, using
the reducing balance method, on the following bases:
Plant and machinery - 20 per cent per annum
The estimated useful lives, residual values and depreciation
method are reviewed at the end of each reporting period, with the
effect of any changes in estimate accounted for on a prospective
basis.
Impairment of non-current assets
For the purposes of assessing impairment, assets are grouped
into separately identifiable cash-generating units. At the end of
each reporting period, the Group reviews the carrying amounts of
its non-current assets, to determine whether there is any
indication that those assets have suffered an impairment loss. If
any such indication exists the recoverable amount of the asset is
estimated in order to determine the extent of the impairment loss
(if any).
An impairment loss is recognised for the amount by which the
assets or cash-generating unit's carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of fair
value less costs to sell and value in use based on an internal
discounted cash flow evaluation.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and on demand
deposits.
Deferred taxation
Recognition of deferred tax assets is restricted to those
instances where it is probable that taxable profit will be
available against which the difference can be utilised.
Investments
Investments in subsidiaries, associates and joint ventures are
stated cost and reviewed for impairment if there are indicators
that the carrying value may not be recoverable. An impairment loss
is recognised to the extent that the carrying amount cannot be
recovered either by selling the asset or by continuing to hold the
asset and benefitting from the net present value of the future cash
flows of the investment. The Group has not elected to apply equity
method of accounting to investments in associates.
Equity
Equity comprises the following:
-- Share capital represents the nominal value of issued ordinary shares and deferred shares.
-- Share premium represents the excess over nominal value of the
fair value of consideration received for equity shares, net of
expenses of the share issue.
-- Shares to be issued reserve represents cash received for the
purchase of shares yet to be issued at the period end and for
creditors who have agreed to convert their debt to shares yet to be
issued at the period end.
-- Merger reserve represents the excess over nominal value of
the fair value of consideration received for equity shares issued
on acquisition of subsidiaries, net of expenses of the share
issue.
-- Share reserve represents shares held in treasury at nominal
value following the conclusion of the defaulting shares from
October 2016.
-- Capital redemption reserve represents the nominal value of shares repurchased by the Company.
-- Retained earnings represent retained profits and losses.
-- Non-controlling interest relates to the ownership interest
and accumulated comprehensive income of the minority shareholders
in the Group's subsidiaries.
Equity instruments
Equity instruments issued by the Company are recorded as the
proceeds received, net of direct costs.
Financial assets
On initial recognition, financial assets are classified as
either financial assets at fair value through the statement of
profit or loss, held-to-maturity investments, loans and receivables
financial assets, or available-for-sale financial assets, as
appropriate.
Loans and receivables
The Group classifies all its financial assets as trade and other
receivables. The classification depends on the purpose for which
the financial assets were acquired.
Trade receivables and other receivables that have fixed or
determinable payments that are not quoted in an active market are
classified as loans and receivables financial assets. Loans and
receivables financial assets are measured at amortised cost using
the effective interest method, less any impairment loss. Interest
income is recognised by applying the effective interest rate,
except for short-term receivables when the recognition of interest
would be immaterial.
For trade receivables and other receivables due in less than 12
months, the Group applies the simplified approach in calculating
Expected Credit Losses ("ECL's"), as permitted by IFRS 9.
Therefore, the Group does not track changes in credit risk, but
instead, recognises a loss allowance based on the financial asset's
lifetime ECL at each reporting date. For any other financial assets
carried at amortised cost (which are due in more than 12 months),
the ECL is based on the 12-month ECL. The 12-month ECL is the
proportion of lifetime ECLs that results from default events on a
financial instrument that are possible within 12 months after the
reporting date. However, when there has been a significant increase
in credit risk since origination, the allowance will be based on
the lifetime ECL. When determining whether the credit risk of a
financial asset has increased significantly since initial
recognition and when estimating ECLs, the Group considers
reasonable and supportable information that is relevant and
available without undue cost or effort. This includes both
quantitative and qualitative information and analysis, based on the
Group's historical experience and informed credit assessment
including forward-looking information.
Financial liabilities
Financial liabilities are recognised when, and only when, the
Group becomes a party to the contracts which give rise to them and
are classified as financial liabilities at fair value through the
profit and loss or loans and payables as appropriate. The Group's
loans and payable comprise trade and other payables.
When financial liabilities are recognised initially, they are
measured at fair value plus directly attributable transaction costs
and subsequently measured at amortised cost using the effective
interest method other than those categorised as fair value through
income statement.
Fair value through the income statement category comprises
financial liabilities that are either held for trading or are
designated to eliminate or significantly reduce a measurement or
recognition inconsistency that would otherwise arise. Derivatives
are also classified as held for trading unless they are designated
as hedges. There were no financial liabilities classified under
this category.
The Group determines the classification of its financial
liabilities at initial recognition and re-evaluate the designation
at each financial year end.
A financial liability is de-recognised when the obligation under
the liability is discharged, cancelled or expires.
When an existing financial liability is replaced by another from
the same party on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or
modification is treated as a de-recognition of the original
liability and the recognition of a new liability, and the
difference in the respective carrying amounts is recognised in the
income statement.
Share-based payments
When share options and warrants are awarded, the fair value of
the options and warrants at the date of grant is charged to the
statement of comprehensive income over the vesting period.
Non-market conditions are taken into account by adjusting the
number of equity instruments expected to vest at each end of
reporting period, so that, ultimately, the cumulative amount
recognised over the vesting period is based on the number of
options and warrants that eventually vest.
Market conditions are factored into the fair value of the
options and warrants granted. As long as all other vesting
conditions are satisfied, a charge is made irrespective of whether
the market vesting conditions are satisfied. The cumulative expense
is not adjusted for failure to achieve a market vesting
condition.
Where the terms and conditions of options and warrants are
modified before they vest, the increase in fair value of the
options and warrants, measured immediately before and after the
modification, is also charged to the statement of comprehensive
income over the remaining vesting period.
Where equity instruments are granted to persons other than
employees, the full cost of services provided is recognised as a
current liability and as a charge in the statement of comprehensive
income. When shares are issued to settle the obligation, the
liability is extinguished and the share issue is reflected in
equity as an issue of share capital.
Upon exercise of share options and warrants, the proceeds
received net of attributable transaction costs are credited to
share capital, and where appropriate share premium.
New and amended Standards and Interpretations adopted by the
Group
There were no new standards and interpretations to published
standards adopted during the year which have had a significant
impact on the Group's accounting policies.
New and amended Standards and Interpretations issued but not
effective for the financial year beginning 1 October 2020
At the date of authorisation of these financial statements, the
following standards and interpretations which have not been applied
in these financial statements were in issue but not yet
effective:
IFRS 17 "Insurance Contracts", effective date 1 January 2023
applies a model that combines a current balance sheet measurement
of insurance contracts with recognition of profit over the period
that services are provided.
IAS 37 "Onerous contracts", effective 1 January 2022 relates to
costs of fulfilling a contract.
The impact of the above standards on the financial statements is
expected to be insignificant. The effect of all other new and
amended Standards and Interpretations which are in issue but not
yet mandatorily effective is not expected to be material. The
Directors will continue to monitor the effect of this and should
the effect become material, more detailed notes will be
provided.
2. Critical accounting judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management
to make estimates and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and the disclosure
of contingent liabilities at the date of the financial statements.
If in the future such estimates and assumptions, which are based on
management's best judgement at the date of the financial
statements, deviate from the actual circumstances, the original
estimates and assumptions will be modified as appropriate in the
year in which the circumstances change.
Where necessary, the comparatives have been reclassified or
extended from the previously reported results to take into account
presentational changes.
Critical judgements and estimates in applying the Group's
accounting policies
In the process of applying the Group's accounting policies,
which are described in note 1, management has made the following
judgements and estimates that have the most significant effect on
the amounts recognised in the financial statements (apart from
those involving estimations, which are dealt with below).
Judgements
Going concern
Management have considered that the Group remains a going
concern. The going concern assumption is discussed further in note
1.
Estimates
There are not deemed to be any key sources of estimation of
uncertainty that have a significant risk of resulting in a material
adjustment to the carrying amounts of assets and liabilities within
the next financial year.
3. Segment and revenue analysis
The accounting policy for identifying segments is based on the
internal management reporting information that is regularly
reviewed by the senior management team.
The Group has one reportable segment:
Catenae and Hyperneph Software Ltd -generates revenue from the
exploitation of intellectual property and licenses held.
The financials for this segment can be seen in the financial
statements in this document.
The Group derives revenue from the transfer of services over
time and at a point in time to customers all located in the UK.
2021 2020
GBP GBP
Timing of revenue recognition:
At a point in time 30,210 14,948
Over time - -
------ ------
Total revenue 30,210 14,948
------ ------
4. Joint venture - Trust in Media
In March 2018, the Group formed a joint venture to create Trust
in Media. Catenae held 50.5% of the shares in Trust in Media.
The company entered compulsory liquidation on 29 July 2020 when
the official receiver was appointed.
The official receiver completed the winding-up on 13 September
2021 without any claim on the Group and Trust in Media Ltd was
dissolved on 20 December 2021.
5. Administrative expenses
The following amounts are included within administrative expenses:
2021 2020
GBP GBP
Auditors' remuneration:
Fees payable to the Company's auditor:
For the audit of the Company's annual
accounts 14,000 14,000
For the audit of the Company's subsidiaries 6,000 -
Fees for taxation compliance services - 1,000
Staff costs (note 6) 311,380 248,575
Depreciation 621 -
6. Directors and staff
Staff costs during the year, including Directors, were as
follows:
2021 2020
GBP GBP
Wages and salaries 283,789 235,916
Social security costs 25,279 10,764
Pension costs 2,312 1,895
------------------------ ---------
311,380 248,575
------------------------ ---------
The average number of staff of the Group during the year was as
follows:
2021 2020
no. no.
Sales, distribution and technology 2 1
Directors and administration 5 3
---------------------- ---------
7 4
---------------------- ---------
The amounts paid and accrued as a liability by the Company in
respect of the Directors, who are the key management personnel of
the Company was as follows:
2021 2020
GBP GBP
Edward Guy Meyer 139,000 97,500
Kevin Everett - 13,025
Anthony Flynn - 4,125
Brian Thompson 16,000 10,000
John Farthing 52,000 23,420
Total Directors emoluments 207,000 148,070
---------------------- -------------
Employers national insurance, employers
pension and share option / warrant charges
for key management
personnel (including directors) 26,560 16,172
---------------------- -------------
233,560 164,242
---------------------- -------------
Details of the total amounts outstanding to the Directors at the
period end are detailed in note 16.
7. Net finance expenses
2021 2020
GBP GBP
Bank interest receivable 10 28
Other interest payable - (586)
Loan Interest payable (24,468)
10 (25,026)
8. Discontinued operations
There were no discontinued operations during the year.
9. Tax on loss
2021 2020
GBP GBP
Corporation tax charge on profits
for the period 5,112 -
Total current tax charge 5,112 -
-------------------- ---------
The reasons for the difference between the actual tax charge for
the year and the standard rate of corporation tax in the UK applied
to profits for the year are as follows:
2021 2020
GBP GBP
Loss before tax (1,241,836) (769,186)
--------------------------- --------------
Loss at the standard rate of corporation
tax in the UK of 19% (2020: 19%) (235,949) (146,145)
Effects of:
Expenses not deductible for tax purposes 186 8,193
Other adjustments 67,194 -
Unutilised tax losses and other deductions 173,681 137,952
--------------------------- --------------
Total tax charge in the year 5,112 -
--------------------------- --------------
Deferred tax assets of approximately GBP2.8m (2020: GBP2.7m)
have not been recognised in the financial statements as there is
currently insufficient evidence to suggest that any deferred tax
asset would be recoverable. The Group has unutilised tax losses of
approximately GBP14.8m (2020: GBP13.9m) that would be available to
carry forward against future profits from the same activity,
subject to agreement by HM Revenue & Customs.
10. Dividend
No dividends have been paid or proposed in the year (2020:
GBPnil).
11. Loss per share
The calculation of the basic loss per share is based on the loss
attributable to ordinary shareholders divided by the weighted
average number of shares in issue during the year. The calculation
of diluted loss per share is based on the basic loss per share,
adjusted to allow for the issue of shares and the post tax effect
of dividends and interest, on the assumed conversion of all other
dilutive options and other potential ordinary shares.
There were 164,444 share options and 70,022,695 share warrants
outstanding at the year-end (2020: 1,621,911 and 46,154,769 ).
However, the figures for 2021 and 2020 have not been adjusted to
reflect conversion of these share options, as the effects would be
anti- dilutive.
2021 2020
Weighted Weighted
average Per share average Per share
Loss number amount Loss number amount
GBP of Pence GBP of Pence
shares shares
Basic and diluted
loss per share
attributable
to shareholders (1,257,149) 258,490,041 (0.49) (769,186) 118,441,725 (0.65)
12. Property, plant and equipment
Group Plant and machinery Total
GBP GBP
Cost
At 1 October 2019 and 2020 - -
On acquisition of subsidiary 6,522 6,522
Additions 2,111 2,111
At 30 September 2021 8,633 8,633
--------------------------------------- -------------------
Accumulated depreciation
At 1 October 2019 and 2020 - -
On acquisition of subsidiary 1,184 1,184
Charge for the year 621 621
--------------------------------------- -------------------
At 30 September 2021 1,805 1,805
--------------------------------------- -------------------
Carrying amount
As at 30 September 2021 6,828 6,828
As at 30 September 2020 - -
13. Intangible assets
Group Goodwill Total
GBP GBP
Cost
At 1 October 2019 and 2020 1 1
Additions in year 318,629 318,629
Impairment (318,629) (318,629)
-------------------------------- -------------------
At 30 September 2020 and 2021 1 1
-------------------------------- -------------------
Carrying amount
As at 30 September 2020 and 2021 1 1
The Group assesses at each reporting date whether there is an
indication that an asset may be impaired. The assets have been
allocated for impairment testing purposes to the individual
businesses acquired which are also the cash--generating units
("CGU") identified. The recoverable amount of a CGU is determined
based on value in use calculations using cash flow projections
based on financial budgets approved by the Directors. The
projections are based on the assumption that the Company can
realise projected sales. A prudent approach has been applied with
no residual value being factored into these calculations. If the
projected sales do not materialise there is a risk that the total
value of the intangible assets shown above would be impaired.
Goodwill is assessed annually for impairment. At the period end
based on these assumptions there is an indication of impairment of
the full value of goodwill.
On 4 May 2021 the Group entered into an agreement to purchase
51% of the equity interests of Hyperneph Software Ltd. Refer to
Note 27 for further details of the acquisition.
There is no consideration allocated to the fair value of the net
identifiable assets and liabilities acquired resulting in goodwill
of GBP318,629 for intangible assets that do not qualify for
separate recognition. The goodwill includes customer loyalty, staff
know how, reputation and relationships with contractors and
suppliers. The goodwill has not currently been treated as being
expected to be tax deductible.
Details of the fair value of identifiable assets and liabilities
acquired and goodwill as at 4 May 2021 are as follows, measuring
non controlling interests under the "proportionate interest
method":
Book Value Adjustment Fair value
GBP GBP GBP
Intangible fixed assets - - -
Tangible fixed assets 5,338 - 5,338
Financial assets - - -
Trade and other receivables 15,000 - 15,000
Cash 24,155 - 24,155
Trade and other payables (41,805) - (41,805)
Borrowings - - -
---------- ---------- ----------
Total net assets 2,688 - 2,688
Non controlling interests (1,317)
Goodwill 318,629
----------
Fair value of consideration 320,000
----------
Acquisition-related costs were GBP35,025 and were recognised as
expenses in the period within administrative expenses.
The amount of the non-controlling interest in the acquiree
recognised at the acquisition date was GBP1,317 and was measured
using the 'proportionate interest method'.
GBP5,208 of revenue and GBP35,778 losses of the acquiree (net of
intercompany eliminations) since the acquisition date have been
included in the consolidated statement of income for the
period.
It is not possible to calculate the combined entity's revenue
and loss if the acquisition had occurred at the start of the period
due to the acquiree's long period of accounts which straddled the
Group's prior year end.
14. Investments in subsidiaries
Company
Investments Total
GBP GBP
Cost
At 1 October 2019 and 2020 - -
Additions in year 320,000 320,000
Impairment (320,000) (320,000)
-------------------------------- -----------------
At 30 September 2020 and 2021 - - 10 -
-------------------------------- -----------------
Carrying amount
As at 30 September 2020 and 2021 - -
The value of shares in investments are tested annually for
impairment.
Subsidiaries Registered Address Class of Total Number Percentage
as at 30 Sept Shares of Shares in held by Catenae
2021 issue at 30
Sept 2021
Synovate Global 35 New Broad Street, Ordinary Shares
Ltd London, EC2M 1NH of 0.1p 1 100%
====================== ================ ============== ==================
1007 London Road,
Hyperneph Software Leigh-On-Sea Ordinary Shares
Ltd SS9 3JY of 0.1p 2000 51%
====================== ================ ============== ==================
Synovate Global Ltd was dissolved on 7 June 2022.
15. Trade and other receivables
Group and Company
2021 2020
GBP GBP
Trade receivables 11,010 4,284
Other receivables 34,226 16,320
----------------------------- ---------
45,236 20,604
----------------------------- ---------
Trade receivable days at the year-end were 133 days (2020: 105
days). No interest is charged on receivables within the agreed
credit terms. Thereafter, interest may be charged.
An allowance for impairment is made where there is an identified
event which, based on previous experience, is evidence of a
reduction in the recoverability of the outstanding amount. The
Group provides, in full, for any debts it believes have become non-
recoverable. The figures shown above are after deducting specific
provision for bad and doubtful debts of GBPnil (2020: GBPnil). No
amounts included within trade and other receivables are expected to
be recovered in more than one year (2020: GBPnil).
The maximum exposure to credit risk at the reporting date is the
carrying value of each class of receivable set out above. The
carrying value at the year-end for each class of assets is deemed
by the Directors to be the same as the fair value.
The ageing of trade receivables that have not been impaired
are:
2021 2020
GBP GBP
11,010 4,284
More than 29 days 11,010 4,284
------------------ ----------------
16. Trade and other payables
Group
2021 2020
GBP GBP
Trade payables 86,193 137,813
Other payables 122,482 4,284
Taxation and social security 23,701 455
Accruals and contract liabilities 42,845 71,669
------------------------------ ----------------
275,221 214,221
------------------------------ ----------------
Included in accruals and deferred income are amounts of GBP6,500
(2020: GBP34,250) relating to unpaid contingent remuneration to the
Directors in office at the year-end. This has been accrued in
accordance with the payments agreed between the Group and
Directors.
Included in contract liabilities there is GBP12,000 (2020:
GBP6,250), which relates to the residual proportion of annual fees
remaining at the year-end.
Company
2021 2020
GBP GBP
Trade payables 83,492 137,813
Other payables 105,102 4,284
Taxation and social security 1,470 455
Accruals and contract liabilities 36,595 71,669
------------------------------ ------------------
226,659 214,221
------------------------------ ------------------
Included in accruals and deferred income are amounts of GBP6,500
(2020: GBP34,250) relating to unpaid contingent remuneration to the
Directors in office at the year-end. This has been accrued in
accordance with the payments agreed between the Company and
Directors.
Included in contract liabilities there is GBP6,250 (2020:
GBP6,250), which relates to the residual proportion of annual fees
remaining at the year-end.
17. Interest bearing loans and borrowings
Group and Company
2021 2020
GBP GBP
Loans due within one year - -
Loans due after one year - 18,000
--------------------- ---------
- 18,000
--------------------- ---------
The loan GBP18,000 was a Bounce Back Loan and was due to be
repaid over 6 years with interest at 2.5% per year, with the
repayments and interest commencing 1 year after draw down. However,
the loan was repaid in full in May 2021 without any interest
accruing.
18. Financial instruments and risk management
Financial risk factors
The Group's financial instruments comprise cash, including
short-term deposits, trade and other receivables, short-term loan
financing and trade and other payables that arise directly from its
operations. The main risks arising from the Group's financial
instruments are liquidity risk, credit risk and interest rate risk.
The Board has reviewed and agreed policies for managing each of
these risks and they are summarised below. The Group has no
financial assets other than trade receivables and cash at bank. The
statement of financial position values for the financial assets and
liabilities are not materially different from their fair
values.
Liquidity risk
The Group seeks to manage financial risk to ensure sufficient
liquidity is available to meet foreseeable needs and to invest cash
assets safely and profitably. The Group policy is to ensure there
are sufficient cash reserves to meet liabilities during such
periods. These are incorporated into rolling twelve-month Group
cash flow forecasts, which are reviewed by the Board monthly.
Short-term flexibility is provided through the availability of
cash facilities. Long-term funding is secured through issues of
share capital and loans.
Credit risk
The Group's principal financial assets are bank balances, cash
and trade and other receivables. The Group's credit risk is
primarily attributable to its trade receivables. As far as
possible, the Group operates to ensure that the payment terms of
customers are matched to the Group's own contractual obligations on
development.
Currency risk
The Group does not operate in overseas markets and is not
subject to exposures on transactions undertaken during the year.
The Group's exposure to exchange rate fluctuations is therefore not
significant.
Capital risk management
The capital structure of the Group consists of a loan and the
shareholders' equity, comprising issued share capital and reserves.
The capital structure of the Group is reviewed on an on-going basis
with reference to the costs applicable to each element of capital,
future requirements of the Group, flexibility of capital to be
drawn down and availability of further capital should it be
required.
The Group had no loan liabilities at the year-end (2020:
GBP18,000).
Liability maturity analysis
Group
Repayable on demand Between 1 Between 6
or within 1 month month and months and
2021 6 months 1 year
GBP GBP GBP
Trade creditors 86,193 - -
Other creditors - - 146,183
Interest bearing loans - - -
Between 1 Between 6
Repayable on demand month and months and
2020 or within 1 month 6 months 1 year
GBP GBP GBP
Trade creditors 137,813 - -
Other creditors 4,284 - -
Interest bearing loans - - -
(GBP18,000 due within
6 years but repaid early
8 months after year
end)
Company
Repayable on demand Between 1 Between 6
or within 1 month month and months and
2021 6 months 1 year
GBP GBP GBP
Trade creditors 83,492 - -
Other creditors - - 106,572
Interest bearing loans - - -
Between 1 Between 6
Repayable on demand month and months and
2020 or within 1 month 6 months 1 year
GBP GBP GBP
Trade creditors 137,813 - -
Other creditors 4,284 - -
Interest bearing loans - - -
(GBP18,000 due within
6 years but repaid early
8 months after year
end)
Interest rate and liquidity risk
The Group's financial liabilities represented trade and other
payables at the year-end. No interest was payable on the balances
outstanding as at the year end. The Group's working capital
commitments are reviewed on an on-going basis with reference to the
dates when liabilities are to be repaid.
19. Share capital
2021 2020
GBP GBP
Allotted, called up and fully paid
281,220,744 (2020: 221,091,508) ordinary
shares of 0.2p
(2020: 0.2p) each 562,441 442,183
========= =========
562,441 442,183
On 23 December 2019 the 3,223,601,700 ordinary shares of 0.1p
each were subdivided into 32,236,017 ordinary shares of 0.2p each
and 32,236,017 deferred shares of 9.8p each.
The aggregate nominal value of the deferred shares is
GBP3,159,130.
20. Share warrants
At 30 September 2021, the Company had the following equity
settled warrants in issue (the number of warrants and exercise
prices have been adjusted for the reorganisation of the Company's
shares into ordinary and deferred shares during the year):
Shares
forfeited
Number of / expired Warrants
Date warrant warrants Warrants / waived outstanding
granted outstanding granted / exercised as at 30 Exercise
as at during during the Sept 2021 price
1 Oct 2020 the year year
Edward Guy
Meyer 31/01/2020 2,000,000 - (2,000,000) - 0.4p
Brian Thompson 31/01/2020 26,931,818 - - 26,931,818 0.4p
Anthony
Daltrey 31/01/2020 5,000,000 - - 5,000,000 0.4p
Misc. Warrants 03/08/2016 267,075 - (267,075) - 125p
03/08/2016 267,075 - (267,075) - 175p
23/08/2016 287,582 - (287,582) - 125p
23/08/2016 287,582 - (287,582) - 175p
05/03/2019 5,750,000 - - 5,750,000 12.5p
31/01/2020 4,363,637 - - 4,363,637 0.4p
20/04/2020 1,000,000 - - 1,000,000 1.25p
27/01/2021 - 26,200,000 (3,722,760) 22,477,240 3p
27/01/2021 - 2,500,000 - 2,500,000 2p
08/04/2021 - 2,000,000 - 2,000,000 2.5p
46,154,769 30,700,000 (6,832,074) 70,022,695
--------------- ---------- ------------ -------------
On 27 January 2021, the Company issued warrants to placing
investors and conversion over a total of 26,200,000 ordinary shares
at an exercise price of 3p which may be exercised up to two years
from the date of issue. In addition, warrants over 2,500,000 shares
were issued at 2p which may be exercised up to 3 years. On 8 April
2021, 2,000,000 warrants were issued at 2.5p which may be exercised
up to 2 years.
The fair value of the share warrants issued as share based
payments was estimated at the date of grant using the Monte-Carlo
model for those with the performance conditions and the Black
Scholes model for those without performance conditions, taking into
account the terms and conditions upon which they were granted. The
following tables list the inputs to the model used for the
valuations of share warrants.
The warrants granted in year ended 30 September 2021 related to
subscription and conversion warrants issued alongside certain
shares issued during the year.
Grant Date 5/4/2019
Final Date 5/4/2022
Exercise Price 0.125p
Share Price 0.1p
Expected Volatility 98%
Expected Dividend Yield n/a
Risk Free Rate 1.49%
Average Time to Vest 1 years
Grant Date 3/2/2021
Final Date 3/2/2024
Exercise Price 2p
Share Price 2p
Expected Volatility 25%
Expected Dividend Yield n/a
Risk Free Rate 0.6%
Average Time to Vest immediate
The total fair value of the warrants granted in the period was
approximately GBP2,000 (2020: GBPnil) but has not been deemed to be
material and so has not been recognised . The net charge recognised
in the statement of comprehensive income for share warrants was
GBPnil (2020: GBPnil).
21. Capital commitments
There were no capital commitments as of 30 September 2021 or 30
September 2020.
22. Share-based payment
On 15 August 2011, the Company granted to the Directors and
other individuals options over a total of 19,500,000 ordinary
shares of 0.1p each, at a price of 1 penny per share as disclosed
in the announcement dated 16 August 2011. Half of the options vest
once the closing mid-market share price of the Company has been
more than or equal to 2 pence for a period of 15 consecutive
business days. The remainder vest once the closing mid- market
share price of the Company has been more than or equal to 3 pence
for a period of 15 consecutive days. The options are exercisable on
or following the first anniversary of the date of issue and will
lapse on the tenth anniversary of the date of issue. Options issued
to non-Director employees under the EMI scheme lapse on cessation
of employment. Since the issue date 7,500,000 options have
lapsed.
On 13 December 2012, the Company granted to various individuals
options over a total of 7,695,000 ordinary shares of 0.1p each at a
price of 1.5 pence per share as disclosed in the announcement dated
14 December 2012. Half of the options vest once the closing mid-
market share price of the Company has been more than or equal to 2
pence for a period of 15 consecutive business days. The remainder
vest once the closing mid-market share price of the Company has
been more than or equal to 3 pence for a period of 15 consecutive
days. The options are exercisable on or following the first
anniversary of the date of issue and will lapse on the tenth
anniversary of the date of issue. Options issued to employees under
the EMI scheme lapse on cessation of employment. Since the issue
date 5,695,000 options have lapsed.
On 27 March 2015, the Company granted to the Directors and other
individuals options over a total of 85,787,000 ordinary shares of
0.1p each at a price of 1 penny per share as disclosed in the
announcement dated 22 December 2014. Half of the options vest once
the closing mid-market share price of the Company has been more
than or equal to 2 pence for a period of 15 consecutive business
days. The remainder vest once the closing mid- market share price
of the Company has been more than or equal to 3 pence for a period
of 15 consecutive days. The options are exercisable on or following
the first anniversary of the date of issue and will lapse on the
tenth anniversary of the date of issue. Options issued to
non-Director employees under the EMI scheme lapse on cessation of
employment. Since the issue date 19,190,000 options have
lapsed.
On 23 August 2016, the Company granted to the Directors and
other individuals options over a total of 78,260,782 ordinary
shares of 0.1p each at a price of 0.1 pence per share as disclosed
in the announcement dated 23 August 2016. The options will lapse on
the tenth anniversary of the date of issue. On 23 August 2016, the
Company also granted to a Director options over a total of
3,333,334 ordinary shares of 0.1p each, half of the options at a
price of 1.25 pence per share and the remainder at 1.75 pence per
share. The options vest once the closing mid-market share price of
the Company has been more than 2.5 pence for a period of 5
consecutive business days. The options will lapse on the fifth
anniversary of the date of issue.
Details of the Options are as follows:
Number of Number of Options
Options held new options options held
at 1 October granted in forfeited at 30 Option
2020 the year in the year September price
2021
Tony Sanders 153,520 - 153,520 - 100p
66,666 - - 66,666 10p
16,666 - 16,666 - 125p
16,666 - 16,666 - 175p
Kevin Everett 35,820 - 35,820 - 100p
77,778 - - 77,778 10p
Others 596,630 - 596,630 - 100p
20,000 - - 20,000 150p
638,165 - 638,165 - 100p
================= =============== ===================== ======================= ===============
Total 1,621,911 - 1,457,467 164,444
================= =============== ===================== ======================= ===============
At 30 September 2021, no options were exercisable due to the
mid-market share price of the Company in the period (30 September
2020: nil). At this date, the weighted average contractual life of
the outstanding options was 0.1 years (30 September 2020: 1.1
years).
There were no share options exercised during the year (2020:
nil).
The fair value of the share options was estimated at the date of
the grant using either the Monte-Carlo model (where market
conditions existed) or the Black-Scholes model, taking into account
the terms and conditions upon which they were granted.
The following table lists the inputs to the model used for the
valuations of share options:
Options granted on 15 August 2011 lapsed
15 August 2021
Weighted average share price (pence) 0.95p
Weighted average exercise price (pence) 1p
Option life (years) 1
Risk free interest rate (%) 2
Dividend yield 0
Volatility (%) 60
Options granted on 13 December 2012 expire
13 December 2022
Weighted average share price (pence) 0.7p
Weighted average exercise price (pence) 1.5p
Option life (years) 1
Risk free interest rate (%) 2
Dividend yield 0
Volatility (%) 60
Options granted on 27 March 2015 expire 27
March 2025
Exercise price (pence) 1p 1p
Share price (pence) 0.65p 0.65p
Expected volatility (%) 85% 85%
Expected dividend yield n/a n/a
Risk free rate 0.41% 0.49%
Average time to vest (years) 2 years 2.3 years
Options granted on 23 August 2016 expire
23 August 2026
Exercise price (pence) 0.1p
Share price (pence) 0.625p
Expected volatility (%) 91%
Expected dividend yield n/a
Risk free rate 1.33%
Average time to vest (years) 10 years
Options granted on 23 August 2016 lapsed
23 August 2021
Exercise price (pence) 1.25p 1.75p
Share price (pence) 0.625p 0.625p
Expected volatility (%) 91% 91%
Expected dividend yield n/a n/a
Risk free rate 0.07% 0.07%
Average time to vest (years) 2 years 2 years
The expected volatility was based on historic volatility and
reflects the assumption that the historical volatility is
indicative of future trends, which may not necessarily be the
actual outcome. No other features of the options were incorporated
into the measurement of fair value, and non-market conditions have
not been included in calculating the fair value. The total fair
value of the options granted in the period was GBPnil (2020:
GBPnil). The amount debited to the statement of comprehensive
income for share options was GBPnil (2020: GBPnil). The combined
total fair value of the options and warrants granted in the period
was GBPnil (2020: GBPnil) and the combined amount debited to the
statement of comprehensive income was GBPnil (2020: GBPnil).
23. Transactions with Directors and other related parties
Other transactions with Directors
As stated in note 16 to the accounts a total of GBP6,500 (2020:
GBP34,250) is due to certain Directors as unpaid remuneration.
During the prior year, Brian Thompson provided loans to the
Group, both before and after his appointment as a director. These
loans were fully repaid by the end of the year.
Payments (to)
Related Party relationship Transaction / from related Balance owing
amount parties /
owed
2021 2020 2021 2020 2021 2020
GBP GBP GBP GBP GBP GBP
Sales/(Purchases) from
companies in which
Directors or their
immediate family have
a significant controlling
interest 17,800 12,880 17,800 12,880 - -
Amounts lent to the
Group by the Directors
or companies in which
Directors or their
immediate family have
a significant controlling
interest - - - (18,426) - 11,222
Amounts lent to joint
venture companies - - - - - -
All amounts owing to related parties are payable on demand with
no interest accruing.
24. Retirement benefit schemes
During the year, GBP1,207 was paid to a retirement benefit
scheme on behalf of Directors (2020:
GBP928).
25. Operating lease rental commitments
At 30 September 2021 and 30 September 2020, the Group had no
commitments under operating leases.
26. Notes supporting the cash flow statement
Cash and cash equivalents for the purposes of the cash flow
statement comprises:
2021 2020
GBP GBP
Cash available on demand 605,082 714,043
------------------------------ ---------
605,082 714,043
------------------------------ ---------
27. Events after the reporting period
On 16 October 2020, the Company agreed to issue warrants over
12,000,000 new ordinary shares in the Company, including 10,000,000
to a related party of BHA-Medical (Pty) Limited. The Warrants will
be exercisable at a price of 2.5 pence per ordinary share and will
vest with immediate effect from the date of grant and may be
exercised for a period of up to 2 years from issue.
On 16 February 2022, the Company ended this joint venture
agreement and no warrants were issued.
On 4 May 2021 the Company acquired a 51% interest in Hyperneph
Software Limited ("Hyperneph" or "Acquisition"). Tony Sanders is a
former director of the Company and a director and shareholder of
Hyperneph. The consideration for the Acquisition amounts to
GBP320,000, of which GBP270,000 will be satisfied in cash ("Cash
Consideration") and the balance of GBP50,000 will be satisfied by
way of the issue of new ordinary shares in the Company ("Equity
Consideration"). Hyperneph, incorporated on 24 February 2020, is a
software and application development consultancy, focusing on
digital transformation. The rationale for the acquisition is to
secure and enhance the Company's ability to deliver innovative
software-based solutions leveraging Catenae's existing capabilities
including task management, proof of work, digital wallets, identity
and digital certification capabilities, allowing Catenae to provide
a broader portfolio of product and service offerings to support
customers as they pursue new ways of working with people located
remotely in distributed operations. The Cash Consideration will be
satisfied from Catenae's existing cash resources. The Equity
Consideration was due to be satisfied by the issue of new ordinary
shares on or around 28 February 2022 at the volume weighted average
price of the Company's shares during the previous 10 trading
days.
On 9 May 2022, Mr Alan Simpson and Mr Anthony Sanders issued
legal proceedings against the Company in the High Court. The
claimed sum was GBP49,875.00 (plus interest) along with specific
performance of various clauses of a Share Purchase Agreement and a
Shareholders Agreement both dated 1 May 2022. Those relate to the
issue of the GBP50,000 shares consideration and the payment of two
amounts of GBP20,000 relating to working capital. The action is
being defended by the Company which has brought a counterclaim for
breach of restrictive covenants and fiduciary duty. No date is
currently set for trial but the Claimants have issued a Summary
Judgment application which is yet to be listed by the Court.
On 28 September 2022 the Company has agreed additional funding
in the form of a convertible loan
for GBP250,000 from Sanderson Capital Partners Ltd.
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "expect", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward-looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements re ect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.
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END
FR UKOVRURUKUAR
(END) Dow Jones Newswires
September 30, 2022 02:00 ET (06:00 GMT)
Catenae Innovation (LSE:CTEA)
過去 株価チャート
から 10 2024 まで 11 2024
Catenae Innovation (LSE:CTEA)
過去 株価チャート
から 11 2023 まで 11 2024
