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REGISTERED NUMBER: 06712061 (England and Wales)













FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2016

FOR

PLEDGEMUSIC.COM LTD

PLEDGEMUSIC.COM LTD (REGISTERED NUMBER: 06712061)






CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2016




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


PLEDGEMUSIC.COM LTD

COMPANY INFORMATION
for the Year Ended 31 December 2016







DIRECTORS: B Rogers
R Rieger
J Sason
N Ledbetter





REGISTERED OFFICE: 22 Endell Street
London
WC2H 9AD





REGISTERED NUMBER: 06712061 (England and Wales)





AUDITORS: Oury Clark Chartered Accountants
Statutory Auditors
Herschel House
58 Herschel Street
Slough
Berkshire
SL1 1PG

PLEDGEMUSIC.COM LTD (REGISTERED NUMBER: 06712061)

BALANCE SHEET
31 December 2016

31.12.16 31.12.15
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 37,770 42,060
Tangible assets 5 604,370 335,088
Investments 6 20,900 20,900
663,040 398,048

CURRENT ASSETS
Debtors 7 241,811 203,238
Cash at bank 202,450 1,232,329
444,261 1,435,567
CREDITORS
Amounts falling due within one year 8 6,352,341 5,712,051
NET CURRENT LIABILITIES (5,908,080 ) (4,276,484 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(5,245,040

)

(3,878,436

)

CREDITORS
Amounts falling due after more than one year 9 405,000 -
NET LIABILITIES (5,650,040 ) (3,878,436 )

CAPITAL AND RESERVES
Called up share capital 11 15,007 5,605
Share premium 10,343,930 8,446,765
Retained earnings (16,008,977 ) (12,330,806 )
SHAREHOLDERS' FUNDS (5,650,040 ) (3,878,436 )

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 16 November 2017 and were signed on its behalf
by:





R Rieger - Director


PLEDGEMUSIC.COM LTD (REGISTERED NUMBER: 06712061)

NOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2016

1. STATUTORY INFORMATION

Pledgemusic.com 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
The financial statements have been prepared on the going concern basis despite the losses incurred in the
company so far. The company has a signed agreement that allows it to draw upon an additional £1 million of
lending for working capital purposes. The directors believe that this additional financing, in conjunction with
several cost cutting measures that are being implemented in the company and increased revenues will be
sufficient for the company to continue as a going concern for a period of at least 12 months and 1 day from the
approval of these financial statements.

Preparation of consolidated financial statements
The financial statements contain information about Pledgemusic.com Ltd as an individual company and do not
contain consolidated financial information as the parent of a group. The company has taken the option under
Section 398 of the Companies Act 2006 not to prepare consolidated financial statements.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The
Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party
transactions with wholly owned subsidiaries within the group.

Revenue recognition
Turnover represents commission net of value added tax due to the company once pledges are fully funded
according to the terms and conditions of the business.

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.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Plant and machinery etc - Between 5 and 20 years

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

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.


PLEDGEMUSIC.COM LTD (REGISTERED NUMBER: 06712061)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2016

2. ACCOUNTING POLICIES - continued
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 against the profits in the year in which it is incurred.

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.

Financial instruments
Basic Financial Instruments as covered by Section 11 of FRS102 are measured at amortised cost. The company
does not have any Other Financial Instruments as covered by Section 12 of FRS102.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 13 .

4. INTANGIBLE FIXED ASSETS
Other
intangible
assets
£   
COST
At 1 January 2016 48,925
Additions 1,305
At 31 December 2016 50,230
AMORTISATION
At 1 January 2016 6,865
Charge for year 5,595
At 31 December 2016 12,460
NET BOOK VALUE
At 31 December 2016 37,770
At 31 December 2015 42,060

PLEDGEMUSIC.COM LTD (REGISTERED NUMBER: 06712061)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2016

5. TANGIBLE FIXED ASSETS
Plant and
machinery
etc
£   
COST
At 1 January 2016 431,253
Additions 497,915
At 31 December 2016 929,168
DEPRECIATION
At 1 January 2016 96,165
Charge for year 228,633
At 31 December 2016 324,798
NET BOOK VALUE
At 31 December 2016 604,370
At 31 December 2015 335,088

6. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 January 2016
and 31 December 2016 20,900
NET BOOK VALUE
At 31 December 2016 20,900
At 31 December 2015 20,900

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Pledgemusic Publishing Ltd
Registered office: 22 Endell Street, London, WC2H 9AD
Nature of business: Publishing company
%
Class of shares: holding
Ordinary 90.00
31.12.16 31.12.15
£    £   
Aggregate capital and reserves (1,870 ) (3,692 )
Profit for the year 1,823 57,244

PLEDGEMUSIC.COM LTD (REGISTERED NUMBER: 06712061)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2016

6. FIXED ASSET INVESTMENTS - continued

Pledgemusic Retail Ltd
Registered office: 22 Endell Street, London, WC2H 9AD
Nature of business: Retail company
%
Class of shares: holding
Ordinary 100.00
31.12.16 31.12.15
£    £   
Aggregate capital and reserves (2,272 ) 254
(Loss)/profit for the year (2,526 ) 4,108

Pledgemusic Recordings Ltd
Registered office: 22 Endell Street, London, WC2H 9AD
Nature of business: Recording company
%
Class of shares: holding
Ordinary 95.00
31.12.16 31.12.15
£    £   
Aggregate capital and reserves 5,453 7,592
(Loss)/profit for the year (2,139 ) 51,999

Pledgemusic.com USA, Inc.
Registered office: 265 Canal street, New York, USA
Nature of business: Music company
%
Class of shares: holding
Ordinary 100.00
31.12.16 31.12.15
£    £   
Aggregate capital and reserves 356,573 186,592
Profit for the year 169,981 90,955

Pledgemusic.com GmbH
Registered office: Grünberger Str. 1 10243, Berlin, Germany
Nature of business: Music company
%
Class of shares: holding
Ordinary 100.00
31.12.16 31.12.15
£    £   
Aggregate capital and reserves 106,032 104,574
Profit for the year 1,457 3,263

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.16 31.12.15
£    £   
Amounts owed by group undertakings 5,236 -
Other debtors 236,575 203,238
241,811 203,238

PLEDGEMUSIC.COM LTD (REGISTERED NUMBER: 06712061)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2016

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.16 31.12.15
£    £   
Trade creditors 305,717 59,951
Amounts owed to group undertakings 286,900 332,710
Taxation and social security 28,098 16,039
Other creditors & accruals 5,731,626 5,303,351
6,352,341 5,712,051

9. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.16 31.12.15
£    £   
Other creditors 405,000 -

10. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.16 31.12.15
£    £   
Within one year 31,500 31,500

11. CALLED UP SHARE CAPITAL


Allotted, issued and fully paid:
Number: Class: Nominal 31.12.16 31.12.15
value: £    £   
1,500,677 Ordinary A1, A2 and B1 £0.01 15,007 5,605

940,106 Ordinary A1, A2 and B1 shares of £0.01 each were allotted as fully paid during the year.

The company issued 283,736 £0.01 B1 shares at a premium of £5.26.

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

The Report of the Auditors was unqualified.

Emphasis of Matter
Without qualifying our opinion, we draw attention to Note 16 of the financial statements. This note describes that
the financial statements have been prepared on the going concern basis as, despite continuing losses, the company
has put in place cost cutting measures and has access to additional funding if needed.

However, the current balance sheet position indicates the existence of material uncertainty which may cast
significant doubt about the Company's ability to continue as a going concern.

Emma Crowley (Senior Statutory Auditor)
for and on behalf of Oury Clark Chartered Accountants

PLEDGEMUSIC.COM LTD (REGISTERED NUMBER: 06712061)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2016

12. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 - continued

We would like to draw your attention to the following statement contained within our audit report as included
within the full financial statements:-
"This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those
matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's
members as a body, for our audit work, for this report, or for the opinions we have formed."

13. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 December 2016 and
31 December 2015:

31.12.16 31.12.15
£    £   
B Rogers
Balance outstanding at start of year 5,301 5,301
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 5,301 5,301

14. RELATED PARTY DISCLOSURES

The company has taken advantage of the exemptions available not to disclose transactions with wholly owned
subsidiaries. Other related party transactions with non-wholly owned subsidiaries are as follows:

Pledgemusic Publishing Ltd (a 90% subsidiary of the company) - During the year, Pledgemusic.com Ltd incurred
expenses on behalf of Pledgemusic Publishing Ltd to the value of £1,963 (2015: £Nil).
There was a debtor balance of £1,963 outstanding as at 31 December 2016 (2015: £Nil).

Pledgemusic Recordings Ltd (a 95% subsidiary of the company) - During the year, Pledgemusic.com Ltd incurred
expenses on behalf of Pledgemusic Recordings Ltd to the value of £1,450 (2015: £Nil).
There was a debtor balance of £1,450 outstanding as at 31 December 2016 (2015: £Nil).

15. ULTIMATE CONTROLLING PARTY

In the opinion of the directors, there is no ultimate controlling party.

16. UNCERTAINTY OVER GOING CONCERN AND POST BALANCE SHEET EVENTS

The directors recognise that the company has continued to make losses in the current financial year and also since
the balance sheet date. However, the company has a signed agreement that allows it to draw upon an additional
£1 million of lending for working capital purposes. The directors believe that this additional financing, in
conjunction with several cost cutting measures that are being implemented within the company and increased
revenues, will be sufficient for the company to continue as a going concern for a period of at least 12 months and
1 day from the approval of these financial statements.

17. FIRST YEAR ADOPTION

The company adopted FRS102 for the accounting year ended 31 December 2016. There were no adjustments
arising at the transition date or at the end of the comparative period, therefore there is no difference between
equity under the previous financial reporting framework and equity under FRS102.