REGISTERED NUMBER: 04244598 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 December 2017

for

Intrinsiq Materials Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Ms J Tegan

R Nead

SECRETARY:

Jordan Company Secretaries Limited

REGISTERED OFFICE:

Suite 1

3rd Floor

11-12 St. James’s Square

London

SW1Y 4LB

REGISTERED NUMBER:

04244598 (England and Wales)

ACCOUNTANTS:

The Fish Partnership

The Mill House

Boundary Road

Loudwater

High Wycombe

Bucks.

HP10 9QN

FIXED ASSETS

Intangible assets

4

36,546

39,894

Tangible assets

5

63,250

94,221

99,796

134,115

CURRENT ASSETS

Stocks

3,707

2,985

Debtors

6

242,109

458,715

Cash at bank

126,914

210,645

372,730

672,345

CREDITORS

Amounts falling due within one year

7

394,552

355,177

NET CURRENT (LIABILITIES)/ASSETS

(21,822

)

317,168

TOTAL ASSETS LESS CURRENT LIABILITIES

77,974

451,283

CREDITORS

Amounts falling due after more than one year

8

1,393,136

996,032

NET LIABILITIES

(1,315,162

)

(544,749

)

CAPITAL AND RESERVES

Called up share capital

9,773,756

9,773,756

Share premium

539,460

539,460

Retained earnings

(11,628,378

)

(10,857,965

)

SHAREHOLDERS' FUNDS

(1,315,162

)

(544,749

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2017 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 25 September 2018 and were signed on its behalf by:

R Nead - Director

1.	STATUTORY INFORMATION

Intrinsiq Materials Limited is a private company, limited by shares , registered in England and Wales.

The company's registered number and registered office address can be found on the Company

Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover from government grants is recognised in the profit and loss so as to match it with the

expenditure towards which it is intended to contribute. Other turnover represents amounts invoiced in

respect of the delivery of goods and the provision of services.

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.

Patents and licences are being amortised evenly over their estimated useful life of twenty years.

Patents

Patents are initially recorded at cost and are amortised over their estimated economic life. Patents are

reviewed annually in order to identify if any conditions exist that indicate a permanent diminution in

value. In cases where such circumstances exist, an impairment charge is debited to the profit and loss

account to reduce the carrying value of the patents to fair value.

Tangible fixed assets

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

Plant and machinery

-

at varying rates on cost

Fixtures and fittings

-

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at

the balance sheet 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.

Going concern

For the year ended 31 December 2017 the company incurred losses of £770,413 and for 2016 losses

of £589,761. The company continues to be dependent upon the support of its parent company Intrinsiq

Materials Inc, its directors and its shareholders.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in

the assets of the entity after deducting all of its financial liabilities.

Where the contractual obligations of the financial instruments (including share capital) are equivalent

to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial

liabilities are presented as such in the balance sheet. Finance cost gains and losses relating to

financial liabilities are included in the profit and loss account. Finance costs are calculated so as to

produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a

financial liability then this is classed as an equity instrument. Dividends and distributions relating to

equity instruments are debited direct to equity.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 16 (2016 - 18 ) .

4.	INTANGIBLE FIXED ASSETS

Patents

and

licences

£

COST

At 1 January 2017

and 31 December 2017

56,911

AMORTISATION

At 1 January 2017

17,017

Amortisation for year

3,348

At 31 December 2017

20,365

NET BOOK VALUE

At 31 December 2017

36,546

At 31 December 2016

39,894

5.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

machinery

fittings

Totals

£

£

£

COST

At 1 January 2017

2,856,863

140,116

2,996,979

Additions

-

2,743

2,743

At 31 December 2017

2,856,863

142,859

2,999,722

DEPRECIATION

At 1 January 2017

2,764,224

138,534

2,902,758

Charge for year

32,630

1,084

33,714

At 31 December 2017

2,796,854

139,618

2,936,472

NET BOOK VALUE

At 31 December 2017

60,009

3,241

63,250

At 31 December 2016

92,639

1,582

94,221

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

41,586

113,822

Other debtors

200,523

344,893

242,109

458,715

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loans and overdrafts

5,631

-

Trade creditors

136,366

45,561

Taxation and social security

10,357

12,460

Other creditors

242,198

297,156

394,552

355,177

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Amounts owed to group undertakings

1,393,136

996,032

9.	RELATED PARTY TRANSACTIONS

Intrinsiq Materials Limited is wholly owned by Intrinsiq Materials Inc.

Intrinsiq Materials Inc is in turn owned by the following combination of corporate entities and individual

investors;

Trillium International

10.72%

Cayuga Venture

56.24%

Rand Capital

12.04%

The Rochester Angel Fund

0.58%

Individual Investors

2.83%

Employees

17.59%

During the year the company had the following transactions with Interinsiq Materials Inc;

- received additional loans of £312,489 (2016: £760,284)

- paid interest of £84,615 (2016: £15,287) on the loan account

- issued cross share agreement sales of £NIL (2016: £89,023)

- received recharged cost invoices of £NIL (2016: £193,745)

As at 31 December 2017 the company owed £1,393,136 (2016: £996,032) to Intrinsiq Materials Inc in

respect of a loan account that is repayable on demand.

10.	ULTIMATE CONTROLLING PARTY

The ultimate parent company of Intrinsiq Materials Limited is that of Intrinsiq Materials Inc, a company

incorporated in the United States of America.

The largest and smallest group in which Intrinsiq Materials Limited is a member and for which

consolidated accounts are drawn up is that headed by Intrinsiq Materials Inc.