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| Report of the Directors | |
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| Balance sheet | |
| Notes to the Financial Statements |
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The directors present their report with the financial statements of the company for the period ended 31st August 2015
Principal activities
The principal activity of the company in the period under review was:
Directors
The directors shown below have held office during the whole of the period from
01st September 2014 to 31st August 2015
Dr David Lanc
Mr Ian Paterson Brown
Political and charitable donations
No charitable donations were made during the year. No contributions to political organisations were made during the year.
Company policy on the employment of disabled persons
The year to 30th August 2015 was transformational for Payfont Limited (Payfont, the Company). In the period leading up to 24th December 2014, the Company raised the first tranche of its seed-funding round. Some £1.3m was raised via a direct share issue. The Company has agreed with its shareholders that it can seek up to £6m to fund its activities without continuous recourse to further investment agreements. This agreement both enables the Company’s directors to pursue efficient capital raising within the limits set and agreed with its shareholders, and to balance more effectively capital raising with financial need and investor interests. The seed investment has critically enabled the Company to finance recruitment of software engineering and technical resources and to start the production design, configuration and build of its Cybersecurity products. As at 30th August 2015, the Company was in process of gathering its second tranche of funds, having banked a further £0.97m as at the year-end. The Company employed 12 paid staff at its year-end, including 2 directors, of which 10 are focused entirely on bringing its software products to market. In addition, 2 further resources work with the Company. One works via a Government “Knowledge Transfer Partnership” (KTP), whereby a KTP grant of some £90,000 was awarded after the Company successfully bid for innovation support. Another is a security specialist via a “buy out’ of time from a leading Cybersecurity University, with which the Company engages under contract in joint Cybersecurity research and development. The KTP grant follows on from a very successful SMART Feasibility award of £97,000, of which the final installment of £27,000 was due at the year-end. This helped fund the development, testing, scalability evaluation and production blueprint design from the Company’s ADeCA Cybersecurity framework for protecting organisational and Cloud stored data. ADeCA is an exciting product, of global significance, which is in early production build at the year-end, and will be the focus of further innovation given its relevance to global Cyber threats. Recognising the Company is in its early production build, relationships are being developed with appropriate PR/Branding and business development specialists. This inevitably takes much time, and is an ongoing process. However, by the first quarter of 2016 we anticipate having a more aggressive PR and business development focus in place, commensurate with our funds priorities. The above resources, successes, and activities, together with continuing support from the Company’s advisers, will enable the Company to consolidate its position in 2016. Early discussions with large banking groups and global tech companies in 2015 are ongoing, with our strategy moving from conceptual presentations to in-production build proofs. Global Cybercrime, identity and financial fraud continue to grow despite existing industry attempts to reduce the impact of Cybercrime. The Dynamic Authentication and Data Security products the Company is developing are designed to counter both the increasing threat and the weakening response of industry to online security. The Company remains an “early stage” innovator, and as such carries the risk inherent in such an embryonic stage Company. However, its IP, products under development and future focus remain novel and transformational, and as such the Company must balance the need to showcase its software with the need to “educate” a global market that is used to linear steps and incrementalism. To this end, the Company has embarked on a development that will result in a direct market launch of a product, codenamed “Tag and Tab.” Tag and Tab will showcase the Company’s Dynamic Authentication together with its ADeCA data security, within a simple to use Cloud based file sharing and connection application, available on all major operating environments. This approach is designed to deliver an ultra-secure working system used by people whereby privacy and data ownership are respected, and the concept of personalised authentication and user based risk appetite are highlighted. This launch will provide a more elegant showcase of the Company’s key Cybersecurity, and enable more insightful collaborations and partnerships to be developed. It will also provide the Company with market feedback and increased business development opportunities. The components within Tag and Tab are core to all Payfont branded products thereby optimizing resource and cost effort. As at the year end, the Company is on schedule to deliver Tag and Tab to first delivery beta testing use by end September, and to deliver a market ready product by Q1, 2015. Further progress was made on developing IP via patent and trademark applications. Despite the Alice Corporation case in the US, the Company believes, via its US patent attorneys, it is well placed with its patented IP, and continues to process applications where appropriate. As at the year-end, a further 3 patent applications were in process or pending and US and European trademarks were being pursued. Funds and markets allowing, 2016 will see the Company deliver its core Cybersecurity product developments, and develop its first partnerships.
The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006
This report was approved by the board of directors on
And Signed On Behalf Of The Board By:
Name: Dr David Lanc
Status: Director
Name: Mr Ian Paterson Brown
Status: Director
for the Period Ended 31st August 2015
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2014 £ |
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| Administrative expenses: | 2, 3 |
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| Profit or (loss) on ordinary activities before taxation: | ( |
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| Profit or (loss) for the financial year: | ( |
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The notes form part of these financial statements
The notes form part of these financial statements
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| Fixed assets | |||
| Intangible assets: |
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| Tangible assets: | 4 |
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| Total fixed assets: |
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| Stocks: |
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| Debtors: | 5 |
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| Cash at bank and in hand: |
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| Total current assets: |
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| Creditors: amounts falling due within one year | 6 |
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| Net current assets (liabilities): |
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| Total assets less current liabilities: |
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| Creditors: amounts falling due after more than one year: | - |
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| Total net assets (liabilities): |
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The notes form part of these financial statements
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| Capital and reserves | |||
| Called up share capital: | 7 |
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| Profit and Loss account: | ( |
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The financial statements were approved by the Board of Directors on
SIGNED ON BEHALF OF THE BOARD BY:
Name: Dr David Lanc
Status: Director
Name: Mr Ian Paterson Brown
Status: Director
The notes form part of these financial statements
Basis of measurement and preparation of accounts
Tangible fixed assets depreciation policy
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| Land and buildings | Plant Machinery | Fixtures and fittings | Office Equipment | Motor vehicles | Total | |
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| Cost | £ | £ | £ | £ | £ | £ |
| At 01st September 2014: | - | - |
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| Additions: | - | - |
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| At 31st August 2015: | - | - |
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| At 01st September 2014: | - | - |
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| Charge for year: | - | - |
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| At 31st August 2015: | - | - |
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| At 31st August 2015: | - | - |
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| At 31st August 2014: | - | - |
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