REGISTERED NUMBER: 08448361 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 December 2018

for

Den Automation Ltd.

Page

Company Information

1

Chartered Accountants' Report

2

Balance Sheet

3

Notes to the Financial Statements

4

DIRECTORS:

Y Khattak

R Watkins

S Ahmed

REGISTERED OFFICE:

Unit 605, Metropolitan Wharf

70 Wapping Wall

London

E1W 3SS

REGISTERED NUMBER:

08448361 (England and Wales)

ACCOUNTANTS:

Elliotts Shah

Chartered Accountants

Ground Floor, Bury House

31 Bury Street

London

EC3A 5AR

The following reproduces the text of the report prepared for the directors in respect of the company's annual

unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file

a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the

Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the

financial statements of Den Automation Ltd. for the year ended 31 December 2018 which comprise the Income

Statement, Balance Sheet and the related notes from the company's accounting records and from information and

explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Den Automation Ltd., as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Den Automation Ltd. and state those matters that we have agreed to state to the Board of Directors of Den Automation Ltd., as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Den Automation Ltd. and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Den Automation Ltd. has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Den Automation Ltd.. You consider that Den Automation Ltd. is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Den Automation Ltd.. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Elliotts Shah

Chartered Accountants

Ground Floor, Bury House

31 Bury Street

London

EC3A 5AR

12 March 2019

FIXED ASSETS

Intangible assets

4

141,125

104,684

Tangible assets

5

264,785

124,538

405,910

229,222

CURRENT ASSETS

Stocks

138,942

-

Debtors

6

583,991

397,195

Cash at bank and in hand

59,533

233,264

782,466

630,459

CREDITORS

Amounts falling due within one year

7

688,669

425,398

NET CURRENT ASSETS

93,797

205,061

TOTAL ASSETS LESS CURRENT LIABILITIES

499,707

434,283

CAPITAL AND RESERVES

Called up share capital

9

3

2

Share premium

10

5,084,444

3,009,297

Retained earnings

10

(4,584,740

)

(2,575,016

)

SHAREHOLDERS' FUNDS

499,707

434,283

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 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 12 March 2019 and were signed on its behalf by:

Y Khattak - Director

1.	STATUTORY INFORMATION

Den Automation 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.

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.

Going Concern

The company's ongoing losses have been funded by a series of capital injection and the company continues to be

reliant on further equity funding in order to finance operations until the launch of its products in January 2019.

Such reliance is expected to reduce as sales opportunities increase. The financial statements have been prepared

on a going concern basis, which assumes the continued support of its investors for a period greater than 12

months from the date of approval of these financial statements.

The financial statements do not include any adjustments that would result from a failure to obtain continued

support.

Intangible assets

The accounts reflect the costs incurred to date in relation to applications for patents across certain territories

around the globe including UK.The patents once granted will have a useful life of 10 years. Given that the

company is in the process of designing products with prototypes with no income, the costs incurred which

currently are capitalised on the Balance Sheet will be amortised via the profit and loss account from the point

sales income arises.

Tangible fixed assets

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

Tooling

-

25% on cost

R & D computers & equipment

-

33% on cost

Office furniture & fittings

-

25% on cost

Computer & office equipment

-

33% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Taxation

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

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

Current or deferred taxation assets and liabilities are not discounted.

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

substantively enacted by the balance sheet date.

Deferred tax

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

sheet date.

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

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

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

timing difference.

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

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

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

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 accounts for pension costs on the basis of contributions paid in the course of the period to a

defined employee pension scheme under its auto-enrolment obligations.

Share based payments

The company grants from to time share options to its employees and non-employees service providers. In

accordance with FRS 102 Section 26 "Share based payment", the company recognises a charge to its Profit &

Loss Account for those where shares have vested with an equivalent provision on the Balance Sheet on a straight

line basis. Where options have lapsed, the provision is released back to the Profit & Loss Account in the year in

which the event occurs. Where options are exercised the provision is reduced and an equivalent value is credited

to the share capital and share premium account.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 26 (2017 - 21 ) .

4.	INTANGIBLE FIXED ASSETS

Patents

and

licences

£

COST

At 1 January 2018

104,684

Additions

67,387

Write offs

(30,946

)

At 31 December 2018

141,125

NET BOOK VALUE

At 31 December 2018

141,125

At 31 December 2017

104,684

5.	TANGIBLE FIXED ASSETS

R & D

Office

Computer

computers

furniture

& office

Tooling

& equipment

& fittings

equipment

Totals

£

£

£

£

£

COST

At 1 January 2018

101,077

26,733

9,134

19,842

156,786

Additions

164,911

-

-

6,676

171,587

At 31 December 2018

265,988

26,733

9,134

26,518

328,373

DEPRECIATION

At 1 January 2018

-

16,756

3,951

11,541

32,248

Charge for year

16,624

5,197

2,283

7,236

31,340

At 31 December 2018

16,624

21,953

6,234

18,777

63,588

NET BOOK VALUE

At 31 December 2018

249,364

4,780

2,900

7,741

264,785

At 31 December 2017

101,077

9,977

5,183

8,301

124,538

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Other debtors

583,991

397,195

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade creditors

193,210

152,618

Taxation and social security

74,520

31,818

Other creditors

420,939

240,962

688,669

425,398

8.	LEASING AGREEMENTS

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

2018

2017

£

£

Within one year

72,408

72,408

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.2018

31.12.2017

value:

£

£

2,756,716

Ordinary

£0.000001

3

2

During the year, 38,463 Ordinary shares of £0.000001 each were allotted as fully paid at a premium of £3.90 per

share and 356,508 Ordinary shares of £0.000001 each were allotted as fully paid at a premium of £5.40 per

share.

10.

RESERVES

Retained

Share

earnings

premium

Totals

£

£

£

At 1 January 2018

(2,575,016

)

3,009,297

434,281

Deficit for the year

(2,009,724

)

(2,009,724

)

Cash share issue

-

2,075,147

2,075,147

At 31 December 2018

(4,584,740

)

5,084,444

499,704

11.	RELATED PARTY DISCLOSURES

12.	SHARE BASED PAYMENTS TRANSACTIONS

a) The company has granted share options to its employees under the UK HMRC approved Enterprise

Management Incentive Scheme which was adopted in November 2015.

The share option scheme provides employees with the option to acquire ordinary shares in the company at a

fixed exercise price. An employee's ability to exercise this option is subject to the employee still employed by

the company at the end of the vesting period.

b) In addition, the company has also granted share options to its service providers under the unapproved option

deed.

The position at the reporting date on the unexpired options was as follows:

Employees

Non-employees

Total

Number

Number

Number

At 1 January 2018

132,950

9,050

142,000

Granted in the year

93,160

2,500

95,660

Exercised in the year

-

-

-

Lapsed in the year

-

-

-

At 31 December 2018

226,110

11,550

237,660

======

======

======

£

£

£

Fair value of the options

1,220,994

62,370

1283,364

=======

=====

=======

The fair value of the share options was determined by reference to the most recent exercise to raise capital by

issue of new shares in the Company.

The charge to the Profit & Loss Account for the year was £86,229 (2017-£82,374).