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COMPANY REGISTRATION NUMBER: 07622985
MTIX LIMITED
FILLETED UNAUDITED FINANCIAL STATEMENTS
30 November 2018
MTIX LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 30 NOVEMBER 2018
Contents
Pages
Balance sheet 1
Notes to the financial statements 2 to 6
MTIX LIMITED
BALANCE SHEET
30 November 2018
2018
2017
Note
£
£
Fixed assets
Intangible assets
5
25,000
Tangible assets
6
3,396,850
20,128
------------
------------
3,396,850
45,128
Current assets
Debtors
7
26,021
1,433,729
Cash at bank and in hand
27,568
13,436
------------
------------
53,589
1,447,165
Creditors: amounts falling due within one year
8
( 5,732,860)
( 2,149,377)
------------
------------
Net current liabilities
( 5,679,271)
( 702,212)
------------
------------
Total assets less current liabilities
( 2,282,421)
( 657,084)
------------
------------
Net liabilities
( 2,282,421)
( 657,084)
------------
------------
Capital and reserves
Called up share capital
9
198
198
Profit and loss account
( 2,282,619)
( 657,282)
------------
------------
Shareholders deficit
( 2,282,421)
( 657,084)
------------
------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the profit and loss account has not been delivered.
For the year ending 30 November 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
These financial statements were approved by the board of directors and authorised for issue on 13 December 2019 , and are signed on behalf of the board by:
P Mistry Director
Company registration number: 07622985
MTIX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 30 NOVEMBER 2018
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 35 Westgate, Huddersfield, HD1 1PA.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The company has incurred a further loss for the period of £1,625,337 and the deficit on the balance sheet at 30 November 2018 is £2,282,421. The company is reliant upon the parent company, Avalanche International Corp (t/a MTIX International Inc), and two related companies, DPW Holdings Inc. and Digital Power Corporation, to provide the necessary working capital facilities for it to be able to continue trading. These companies have provided extended credit terms to the company to enable new revenue generating machines to be manufactured and put into use. Based on the company's latest financial forecasts, the directors consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not include the adjustments that would be required if the company was not able to continue as a going concern due to the withdrawal of or lack of working capital facilities.
Revenue recognition
The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill and patents
-
20% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initally recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
25% reducing balance
Fixtures and fittings
-
25% reducing balance
Computer equipment
-
33% straight line
Assets under construction are depreciated from the date they are first brought into use.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 6 (2017: 3 ).
5. Intangible assets
Goodwill and patents
£
Cost
At 1 December 2017 and 30 November 2018
250,000
------------
Amortisation
At 1 December 2017
225,000
Charge for the year
25,000
------------
At 30 November 2018
250,000
------------
Carrying amount
At 30 November 2018
------------
At 30 November 2017
25,000
------------
6. Tangible assets
Assets under construction
Plant and machinery
Fixtures and fittings
Computer equipment
Total
£
£
£
£
£
Cost
At 1 December 2017
60,470
950
6,339
67,759
Additions
1,755,029
2,166,666
3,337
3,925,032
------------
------------
------------
------------
------------
At 30 November 2018
1,755,029
2,227,136
950
9,676
3,992,791
------------
------------
------------
------------
------------
Depreciation
At 1 December 2017
43,039
238
4,354
47,631
Charge for the year
546,024
178
2,108
548,310
------------
------------
------------
------------
------------
At 30 November 2018
589,063
416
6,462
595,941
------------
------------
------------
------------
------------
Carrying amount
At 30 November 2018
1,755,029
1,638,073
534
3,214
3,396,850
------------
------------
------------
------------
------------
At 30 November 2017
17,431
712
1,985
20,128
------------
------------
------------
------------
------------
7. Debtors
2018
2017
£
£
Prepayments and accrued income
5,463
1,211,849
Directors loan account
121,892
VAT recoverable
20,558
13,204
Amounts owed by related undertakings
86,718
Other debtors
66
------------
------------
26,021
1,433,729
------------
------------
8. Creditors: amounts falling due within one year
2018
2017
£
£
Trade creditors
90,176
51,759
Amounts owed to group undertakings
1,520,716
1,761,426
Amounts owed to related undertakings
3,839,989
Accruals and deferred income
277,675
137,491
Social security and other taxes
4,304
Other creditors
198,701
------------
------------
5,732,860
2,149,377
------------
------------
9. Called up share capital
Issued, called up and fully paid
2018
2017
No.
£
No.
£
'A' Ordinary shares of £ 1 each
132
132.00
132
132.00
'B' Ordinary shares of £ 1 each
66
66.00
66
66.00
------------
------------
------------
------------
198
198.00
198
198.00
------------
------------
------------
------------
The issued shares are designated as 132 ordinary A shares of £1 each and 66 ordinary B shares of £1 each. The two classes of share rank pari passu in all material respects.
10. Capital commitments
Capital expenditure contracted for but not provided for in the financial statements is as follows:
2018
2017
£
£
Tangible assets
1,475,740
3,814,257
------------
------------
11. Directors' advances, credits and guarantees
The director's loan account of £Nil (2017: £121,892 debtor) was unsecured and repayable on demand.
12. Related party transactions
Included in other creditors is a loan of £Nil (2017: £198,701) from W T Johnson & Sons (Huddersfield) Limited, a company in which P T A Johnson and D P Johnson are directors and shareholders. This loan was unsecured, repayable on demand and interest free and was settled in full during the year. At the year end £1,520,716 (2017: £1,761,426) was owed to the parent company, Avalanche International Corp. This loan was unsecured, repayable on demand and currently interest free. It has been formalised as a promissory note since the balance sheet date. At the year end £1,750,375 (2017: £86,718 debtor) was owed to a related company, Digital Power Corporation. This is unsecured, repayable on demand and currently interest free. £2,089,614 (2017: £Nil) was owed to another related company, DPW Holdings Inc. on similar terms. Both these companies have certain common directors with the parent company. The company has traded with these companies during the year on normal commercial terms.
13. Controlling party
There is no one ultimate controlling party of the company.