**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**
- Due to the successive lockdowns in 2020, limited research was done.
- We did not attend any conferences.
- Commercialisation of the Borrelia Phage based test in partnership with Red laboratories in Belgium - Brussels: https://redlabs.be/phelix-phage-borrelia/
- Publication in 'Frontiers in Microbiology' of the article describing and detailing our research on the development of a new technology to detect Borrelia infections. https://www.frontiersin.org/articles/10.3389/fmicb.2021.651217/full
- Collaboration with the Bay Are Lyme Foundation on a study of North American Lyme patients.
- Launch with our partner, Red Laboratories, of a test using Phage technology for Rickettsial infections.
- Continuation of research for the development of a more generic and less expensive test to detect borrelia / Lyme infections.
- Study in partnership with Red Laboratories on more than 100 Ticks to better understand the epidemiology of so-called Lyme bacteria.
- We are continuing unabatedly the work of transferring Phage technology to detect so-called Bartonella infections.
## **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
- (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
- (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
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