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2020-12-31-accounts

REGISTERED COMPANY NUMBER: 08820009 (England and Wales) REGISTERED CHARITY NUMBER: 1156666

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

FOR

PHELIX RESEARCH AND DEVELOPMENT

Watts Gregory LLP Chartered Accountants Elfed House Oak Tree Court Cardiff Gate Business Park CARDIFF County of Cardiff CF23 8RS

PHELIX RESEARCH AND DEVELOPMENT

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Page
Report of the Trustees 1 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6
Notes to the Financial Statements 7 to 10

PHELIX RESEARCH AND DEVELOPMENT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2019. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES Objectives and aims

The charity's objects as stated in its Articles of Association are:

"To protect and promote the health of the public in particular by research into the nature , cases, diagnosis, prevention, treatment and cure of chronic infection diseases, including the development of findings of research into practical applications for the prevention, treatment and cure of chronic infection diseases and in furtherance of that primary objective, to support information and raise public understanding of such matters, and to support the research on bacteriophages for bacterial infections in a chronic phase and to develop therapeutic programs based on bacteriophages."

Phelix Research & Development (Phelix R&D) is a medical research charity. The charity works hand in hand with Phelix France, registered in France as an ‘Association d’Intérêt Général’.

Its team is a strong co-partnership of healthcare professionals (practitioners, immunologists and university researchers, amongst them Leicester University) and volunteers, working together to reach the charity’s key objectives.

The overall aim is to develop phage-based diagnostic and treatment of Lyme disease. To-date, we have developed a novel phage-based diagnostic method targeting Lyme Borrelia strains. This novel diagnostic method showed higher sensitivity compared to the current diagnostic methods. With further development, our phage-based method could have the power to distinguish between active and non-active Lyme infection and offer a promise of early Lyme diagnostics.

In addition to our pioneer work in Lyme diagnostics, we have also developed our pipelines of methodologies in isolation and identification of phages that specifically infect Lyme Borrelia strains, and we are currently actively screening for phages. Once we identify phages, we will test the efficacy of these phages in killing Borrelia strain, and develop them towards therapeutics.

Activity update

OBJECTIVES AND ACTIVITIES Public benefit

The trustees can confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charities Commission. Significant activities that we undertook during the year that demonstrate public benefit are set out above.

Page 1

PHELIX RESEARCH AND DEVELOPMENT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

FINANCIAL REVIEW

Financial position

During the year, the charity received income totalling £96,064 and incurred expenditure of £114,043, giving a net loss position of £17,979.

François- Xavier Louvet, founding trustee, increased the notional loan facility agreement with 0% interest by £25,000.

Phelix R&D received £94,943. from RedLab Belgium from the commercialisation of the Phage based test for the year 2020.

Reserves policy

Whilst the trustees are aware of the need to build reserves for a sustainable future. This is not considered necessary at this time due to the support of the trustees.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is governed by its Memorandum and Articles of Association and constitutes a company limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

Trustees are appointed or removed or retire by resolution of the trustees at board meeting or the Annual General Meeting.

Organisational structure

The Board of Trustees administers the company. The Board meets quarterly.

Induction and training of new trustees

Trustees are fully briefed on their legal obligations under charity and company law. Trustees are also urged to make use of the training and advice available on the Charity Commission website.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

08820009 (England and Wales)

Registered Charity number

1156666

Registered office

37 Langton Street Chelsea LONDON SW10 0JL

Trustees

Mr F A G C Louvet Dr L C Teulieres

Independent Examiner

Watts Gregory LLP Chartered Accountants Elfed House Oak Tree Court Cardiff Gate Business Park CARDIFF County of Cardiff CF23 8RS

Page 2

PHELIX RESEARCH AND DEVELOPMENT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

Approved by order of the Board of Trustees on ............................................. and signed on its behalf by:

...................................................................... Mr F A G C Louvet - Trustee

Page 3

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PHELIX RESEARCH AND DEVELOPMENT

Independent examiner's report to the trustees of Phelix Research and Development ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2020.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Julia Mortimer Watts Gregory LLP Chartered Accountants Elfed House Oak Tree Court Cardiff Gate Business Park CARDIFF County of Cardiff CF23 8RS

Date: .............................................

Page 4

PHELIX RESEARCH AND DEVELOPMENT

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2020

2020
Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
21
Charitable activities
Research
94,943
Other income
1,100
Total
96,064
EXPENDITURE ON
Charitable activities
3
Research
114,043
NET INCOME/(EXPENDITURE)
(17,979)
RECONCILIATION OF FUNDS
Total funds brought forward
(308,759)
TOTAL FUNDS CARRIED FORWARD
(326,738)		 2019
Total
funds
£
34,665
28,785
-
63,450
59,534
3,916
(312,675)
(308,759)

The notes form part of these financial statements

Page 5

PHELIX RESEARCH AND DEVELOPMENT

BALANCE SHEET 31 DECEMBER 2020

2020
Unrestricted
fund
Notes
£
FIXED ASSETS
Intangible assets
8
15,320
CURRENT ASSETS
Debtors
9
23,985
Cash at bank
37,333
61,318
CREDITORS
Amounts falling due within one year
10
(20,116)
NET CURRENT ASSETS
41,202
TOTAL ASSETS LESS CURRENT LIABILITIES
56,522
CREDITORS
Amounts falling due after more than one year
11
(383,260)
NET ASSETS
(326,738)
FUNDS
12
Unrestricted funds
(326,738)
TOTAL FUNDS
(326,738)		 2019
Total
funds
£
17,509
-
28,815
28,815
(780)
28,035
45,544
(354,303)
(308,759)
(308,759)
(308,759)

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2020 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

.............................................

Mr F A G C Louvet - Trustee

The notes form part of these financial statements

Page 6

PHELIX RESEARCH AND DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. STATUTORY INFORMATION

Phelix Research and Development is a registered charity and private company limited by guarantee having no share capital. Members have agreed to contribute £10 in the event of a winding up.

The company is incorporated in the United Kingdom and its registered office is 37 Langton Street, Chelsea, London, SW10 0JL

The nature of the company's operations and principal activities is disclosed within the Report of the Trustees.

The financial statements are presented in Sterling (£), the company's functional currency, and rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 S1A Update Bulletin 1) (effective 1 January 2019)', 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.

There have been no material departures from the Financial Reporting Standard 102 1A, except in relation to investment property noted below.

Going concern

The charity has the ongoing support of the trustees.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Intangible assets

Intangible assets acquired separately from a business are capitalised at cost.

Subsequent to initial recognition, intangible assets are stated at cost less accumulated amortisation and accumulated impairment. Intangible assets are amortised on a straight line basis over their estimated useful life. The carrying value of intangible assets is reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable.

The useful economic lives of intangible assets are as follows:

Patents - 10 years

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Page 7

continued...

PHELIX RESEARCH AND DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

2. ACCOUNTING POLICIES - continued

Fund accounting

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

3. CHARITABLE ACTIVITIES COSTS

Research
4.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Fees to Leicester University
Legal & professional fees
Governance costs
Foreign currency gains/losses
Patents and licences amortisation
5.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Patents and licences amortisation
Independent examination fees		 Direct
Costs (see
note 4)
£
114,014		 Support
costs
£
29
2020
£
105,374
553
780
5,118
2,189
114,014
2020
£
2,189
780		 Totals
£
114,043
2019
£
59,766
556
780
(3,757)
2,189
59,534
2019
£
2,189
780

6. TRUSTEES' REMUNERATION AND BENEFITS

There was no trustees' remuneration or other benefits for the year ended 31 December 2020 or for the period ended 31 December 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2020 or for the period ended 31 December 2019.

7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

All expenditure in the year to 31 December 2019 was unrestricted.

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continued...

PHELIX RESEARCH AND DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

8. INTANGIBLE FIXED ASSETS

COST
At 1 January 2020 and 31 December 2020
AMORTISATION
At 1 January 2020
Charge for year
At 31 December 2020
NET BOOK VALUE
At 31 December 2020
At 31 December 2019
9.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Accrued income
10.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Accruals and deferred income
11.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Loan from trustee
Other loans		 2020
£
23,985
2020
£
20,116
2020
£
311,305
71,955
383,260

The loan from trustee has a term of six years and provides funding facilities to the charity to undertake its research work. The loan is interest free and will only be repayable after the charity secures sufficient independent funding.

The additional loan has a term of four years and also provides funding facilities to the charity to carry out its research work. The loan is interest free and will only be repayable if revenue is generated from licensing its patents.

12. MOVEMENT IN FUNDS

Unrestricted funds
General fund
TOTAL FUNDS		 At 1/1/20
£
(308,759)
(308,759)		 Net
movement
in funds
£
(17,979)
(17,979)		 At
31/12/20
£
(326,738)
(326,738)

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continued...

PHELIX RESEARCH AND DEVELOPMENT

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020

12. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
96,064
96,064		 Resources
Movement
expended
in funds
£
£
(114,043)
(17,979)
(114,043)
(17,979)

Comparatives for movement in funds

At 1/1/19
£
Unrestricted funds
General fund
(312,675)
TOTAL FUNDS
(312,675)
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
63,450
TOTAL FUNDS
63,450		 Net
movement
At
in funds
31/12/19
£
£
3,916
(308,759)
3,916
(308,759)
Resources
Movement
expended
in funds
£
£
(59,534)
3,916
(59,534)
3,916

13. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2020 or year ended 31 December 2019 that require disclosure, other than the loan from trustee as disclosed in note 11.

Page 10