IRIS Accounts Production v19.2.0.596 07289096 Board of Directors 1.1.18 31.12.18 31.12.18 30.9.19 false true false false false true false Auditors Opinion iso4217:GBP iso4217:USD iso4217:EUR xbrli:shares xbrli:pure 07289096 2017-12-31 07289096 2018-12-31 07289096 2018-01-01 2018-12-31 07289096 2016-12-31 07289096 2017-01-01 2017-12-31 07289096 2017-12-31 07289096 ns15:EnglandWales 2018-01-01 2018-12-31 07289096 ns14:PoundSterling 2018-01-01 2018-12-31 07289096 ns10:Director1 2018-01-01 2018-12-31 07289096 ns10:PrivateLimitedCompanyLtd 2018-01-01 2018-12-31 07289096 ns10:SmallEntities 2018-01-01 2018-12-31 07289096 ns10:Audited 2018-01-01 2018-12-31 07289096 ns10:SmallCompaniesRegimeForDirectorsReport 2018-01-01 2018-12-31 07289096 ns10:SmallCompaniesRegimeForAccounts 2018-01-01 2018-12-31 07289096 ns10:FullAccounts 2018-01-01 2018-12-31 07289096 1 2018-01-01 2018-12-31 07289096 ns10:Director2 2018-01-01 2018-12-31 07289096 ns10:Director4 2018-01-01 2018-12-31 07289096 ns10:Director5 2018-01-01 2018-12-31 07289096 ns10:CompanySecretary1 2018-01-01 2018-12-31 07289096 ns10:RegisteredOffice 2018-01-01 2018-12-31 07289096 ns5:CurrentFinancialInstruments 2018-12-31 07289096 ns5:CurrentFinancialInstruments 2017-12-31 07289096 ns5:Non-currentFinancialInstruments 2018-12-31 07289096 ns5:Non-currentFinancialInstruments 2017-12-31 07289096 ns5:ShareCapital 2018-12-31 07289096 ns5:ShareCapital 2017-12-31 07289096 ns5:SharePremium 2018-12-31 07289096 ns5:SharePremium 2017-12-31 07289096 ns5:FurtherSpecificReserve1ComponentTotalEquity 2018-12-31 07289096 ns5:FurtherSpecificReserve1ComponentTotalEquity 2017-12-31 07289096 ns5:RetainedEarningsAccumulatedLosses 2018-12-31 07289096 1 2018-01-01 2018-12-31 07289096 ns5:PatentsTrademarksLicencesConcessionsSimilar 2018-01-01 2018-12-31 07289096 ns5:ComputerEquipment 2018-01-01 2018-12-31 07289096 ns5:PatentsTrademarksLicencesConcessionsSimilar 2017-12-31 07289096 ns5:PatentsTrademarksLicencesConcessionsSimilar 2018-12-31 07289096 ns5:PatentsTrademarksLicencesConcessionsSimilar 2017-12-31 07289096 ns5:ComputerEquipment 2017-12-31 07289096 ns5:ComputerEquipment 2018-12-31 07289096 ns5:ComputerEquipment 2017-12-31 07289096 ns5:CurrentFinancialInstruments ns5:WithinOneYear 2018-12-31 07289096 ns5:CurrentFinancialInstruments ns5:WithinOneYear 2017-12-31 07289096 ns5:Non-currentFinancialInstruments 2018-01-01 2018-12-31 07289096 1 2018-01-01 2018-12-31


REGISTERED NUMBER: 07289096 (England and Wales)















FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

FOR

EPSILON-3 BIO LIMITED

EPSILON-3 BIO LIMITED (REGISTERED NUMBER: 07289096)






CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2018




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


EPSILON-3 BIO LIMITED

COMPANY INFORMATION
for the Year Ended 31 December 2018







DIRECTORS: Dr D J Grainger
Ms M N E Ollier
Dr. N L Luneborg
Ip2ipo Services Limited





SECRETARY: The Cambridge Partnership Limited





REGISTERED OFFICE: Moneta Building
Babraham Research Campus
Babraham
Cambridge
Cambridgeshire
CB22 3AT





REGISTERED NUMBER: 07289096 (England and Wales)





AUDITORS: HBB Audit Limited
Statutory Auditors
Bridge House
25 Fiddlebridge Lane
Hatfield
Hertfordshire
AL10 0SP

EPSILON-3 BIO LIMITED (REGISTERED NUMBER: 07289096)

BALANCE SHEET
31 December 2018

31.12.18 31.12.17
as restated
(Unaudited)
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 24,000 25,500
Tangible assets 5 45 438
24,045 25,938

CURRENT ASSETS
Debtors 6 657,680 771,784
Cash at bank 395,089 326,010
1,052,769 1,097,794
CREDITORS
Amounts falling due within one year 7 56,479 119,762
NET CURRENT ASSETS 996,290 978,032
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,020,335

1,003,970

CREDITORS
Amounts falling due after more than one
year (including convertible debt)

8

3,694,006

2,463,450
NET LIABILITIES (2,673,671 ) (1,459,480 )

CAPITAL AND RESERVES
Called up share capital 40,638 40,638
Share premium 3,213,031 3,213,031
Other reserves 382,970 312,691
Retained earnings (6,310,310 ) (5,025,840 )
SHAREHOLDERS' FUNDS (2,673,671 ) (1,459,480 )

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

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 30 September 2019 and were signed on its behalf
by:





Dr D J Grainger - Director


EPSILON-3 BIO LIMITED (REGISTERED NUMBER: 07289096)

NOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2018

1. STATUTORY INFORMATION

Epsilon-3 Bio 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 Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Accounting judgements and key sources of estimation uncertainty
The preparation of the financial statements requires the directors to make judgements, estimates and assumptions
that can affect the amounts reported for assets and liabilities and the results for the year.

The nature of estimation is such that the actual outcomes could differ significantly from those estimates.

The following judgements have had the most significant impact on amounts recognised in the financial
statements:

Convertible debt

The company has issued convertible loan notes. The loan has been allocated between equity and debt elements
using the net present value of the future cash flows. The discount rate used reflects the directors estimate of the
market rate payable on a similar instrument that was not convertible. The rate selected by the directors is
considered to be reasonable given the inherent risk of a research and development company and the amount of
loan notes issued.

Patents
Amortisation is provided at varying rates on cost in order to write off each asset over its estimated useful life.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Computer equipment - 33% on cost

EPSILON-3 BIO LIMITED (REGISTERED NUMBER: 07289096)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2018

2. ACCOUNTING POLICIES - continued

Financial instruments
The company only enters into basic financial instrument transactions that result in the recognition of financial
assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other
accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently
at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one
year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount
of the cash or other consideration expected to be paid or received.

However, if the arrangements of a short term instrument constitute a financing transaction, like the payment of a
trade debt deferred beyond normal business terms or in case of an outright short term loan that is not at market
rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a
market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a
loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for
objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised
in the statement of comprehensive income.

Basic financial liabilities, which include other creditors, are initially measured at transaction price including
transaction costs and are subsequently carried at amortised cost using the effective interest rate method as they
are deemed to not be a financing transaction.

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.

EPSILON-3 BIO LIMITED (REGISTERED NUMBER: 07289096)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2018

2. ACCOUNTING POLICIES - continued

Going concern
The company is engaged in research and development activities and is reliant upon funding from its investors to
meet its operational and working capital needs.

The company's forecasts and projections taking account of expected expenditure and future investment, show
that the company should be able to continue these activities within the level of its available facilities for the
foreseeable future.

Therefore these accounts have been prepared on a going concern basis.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2017 - 1 ).

4. INTANGIBLE FIXED ASSETS
Patents
and
licences
£   
COST
At 1 January 2018
and 31 December 2018 44,831
AMORTISATION
At 1 January 2018 19,331
Amortisation for year 1,500
At 31 December 2018 20,831
NET BOOK VALUE
At 31 December 2018 24,000
At 31 December 2017 25,500

5. TANGIBLE FIXED ASSETS
Computer
equipment
£   
COST
At 1 January 2018
and 31 December 2018 3,668
DEPRECIATION
At 1 January 2018 3,230
Charge for year 393
At 31 December 2018 3,623
NET BOOK VALUE
At 31 December 2018 45
At 31 December 2017 438

EPSILON-3 BIO LIMITED (REGISTERED NUMBER: 07289096)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2018

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.18 31.12.17
as restated
(Unaudited)
£    £   
Other debtors 657,680 771,784

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.18 31.12.17
as restated
(Unaudited)
£    £   
Trade creditors 46,579 65,363
Other creditors 9,900 54,399
56,479 119,762

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.18 31.12.17
as restated
(Unaudited)
£    £   
Other creditors 3,694,006 2,463,450

The total of other creditors relates to convertible loan notes stated at their present value of future cash flows
discounted at a market rate of interest that would be payable on a similar debt instrument that was not convertible

9. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

P A R Skipper (Senior Statutory Auditor)
for and on behalf of HBB Audit Limited

10. POST BALANCE SHEET EVENTS

The convertible loan notes have been renewed following the year end on the similar terms.