REGISTERED COMPANY NUMBER.. OB820009 (England and Wales) REGISTERED CHARITY NUMBER: 1156666 REPORT OF THE TRUSTEES ANO UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 FOR PHELLX RESEARCH AND DEVELOPMENT Watts Gregory LLP Chartered Accountants Elf6d House Oak Traè Court Cardiff Gate Bu5inès5 Park CAROIFF County of Cardiff CF23 8RS
PHELIX RESEARCH AND DEVELOPMENT CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Pag• Report ol th• Trustee5 Ind•p•ndent Examinerf$ Report Statèmènt of Financial Activltl¢s Balanc¥ Sheet Notss to the Flnan¢ial Statements 7 trj 10
PHELIX RESEARCH AND DEVELOPMENT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021 The trustees, who are also directors of the charity for the purpos8s of the CompBnles A¢1 2006. present their report with the finan¢ial slatemenls of the Charity for the year ended 31 December 2021. The truste95 have adopted the provisions of Accounting and Repting by Charities.. Statement of Recommended Practice 8ppIic8bte lo charities preparing the accounts in accordanee with the Financial Rèporbny Standard applicable in tho UK and Republic of IrÈ18nd {FRS 1021 {offective 1 January 20191. OBJECTIVES AND ACTIVITIES Objectlves and aims The charivs obpcts as stated in its Articles of Association are-. 'To protect and promote th8 health ol the public tn particular by research into th& nature cases, diagno&s. prevention, treatment and cure of chronic infection diseases, includino the develi>pm8nt of findings of resobrch into practical applications for the prevention, treatment and cure of chronic infectio%) disèas$s and in furtherance L>f that primary objective, to support information atKI rais8 public understanding of sueh malt915, and to support tha research on bacteriophages for bacterial inledions in a chronic phase and to devèlop Iherapeutic program5 based on bacteriophages.. Phelix Resèarch & Development {Phèllx R&D) is a medical researth charity. Th8 charity works hand in hand with Phelix Fran, registered in France as an 'Association d'lnlérél Général.. Its team is a strong co.partnership of healthcare professlonals Ipraclitiorws. immunolojists and unlversity researchers, amongst them Leicester Untversityl ènd voluntee¥s, working tOgeth8r to reach the charity's key objoctivgs. The overall aim 15 to develop ph8ge-b8sed diagnostic and troatmgnl ol Lyme disease. To-d8t&, we have developed a novel ph8gè-ba5ed diagnostic method targeting Lyme Borrelia S15. This novel diagnostic rnethod showed higher sensitsvity compared lo the current dia9nosb¢ methods. With furth&r dèveloprn8nt. our phage-basèd method could have the power to distinguish behyeen active 8nd non-aclive Lyme infection and off8r a promise of earfy Lym8 (Ji89rStics. In addition to our pioneer wotl( in Lyme dTr8gnostics, we hav& also d6velop8d our pipelines of m&thodolo9ies in isolation and identification of phages that specifically infect Lyme Borrelia slrains. artd w8 are crntIY activ&ly screening for phages. Once we identfy phages, we will test th9 efficacy of these phages In killtng Borrelia strain, aThJ develop them towards therapeutics. Activty update Currenuy, the charity is f$sed on supporting r&sè8r¢h yufrounding bacteriophage virusgs and their potential usès in ¢hronic infection. Could bact8riophages Pfovide aft alL8rnative lo anlibiotscs. providlng a solulK)n to the problem of increasing anlibiotic resistancg, one of the lar9est thSts lo glob81 heallh? Bafore reaching this stag&. r8searc 15 required in the development of new and mor& $8n5i¢4V9 tests for such thron1¢ infections. The genus of bacteria id8nlified as a target for Se$r¢h being canied out by the Phelix tèam inibally is callèd 8orr&lia spp. Many of the specis within Ih¢s genus are commonly known lo be carried by ticks and Ie and can cause Lymè disease, il spread lo humans. Simultaneously, work is bwng done to givè further in$ight into the pathology and physlology ol major neurodegèn8rative conditions, specifically neuroborreliosis, BLrtism spectrum disorder and Alzheimer's di58ase. This investigation is to piovide a firm basis fot Phelix's future resoareh into the relationship bean chronic inlèction and neurodegeneT8b"on. In the year 2021, th¥ charity and the Univèrsity of Leicester have been focuslng on improving the specificity and the sensitwity of the diagnostic lesl we designed. Our agreemoftt with Rgd Laboratori&s In Bélgium helped us to gain some retums from ourjoint patent in orrjer lo finance the research. The charity thd also som8 interesting work on improwng our Bartonella Sp. Test. In Ihe year 2021. the University of L•lc8st&r published its first article in a professional journal about OUT research. OBJECTIVES AND ACTIVITIES Publle benefit The trusteès can confiryn that they have complied with the duty in SeCtn 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charities Commission. Slgnifieant activities that we undertook during the year that demonstrate publie b&n8fit are 3et out atr*)ve. Page 1
FOR YEAR ENDED 31 LECEAWi 21n1 FINANIJAL REVIEW Flnaneial PlI[0n During Ihe year. the chairty £95.193 and irKurf¢d exwdhurp of £95.918. gNing a n8t po8Jbon ot£725. tho yèar2021. thi5 due tott suN)ortofthètru$lÈes. STRUCTURE. GOi+ERPUhfEAt4D MANAGEMENY Go¥Èming do¢urtftt The tharity i8 9ovemed by its Memorandum ArdeS ofA8swsw Wld stitU a&Thpary ty guarante8. 88 defined ty th? compare$AC# 2016. TTUSte&s are 8ppointed or reM0d or reth by r8sdubon of tru8lves ot tx)ard meetin9 or thé AML1 G8n8Tat Mee"rtg. The Board ofTru5tees adminiskn the rnFry. 7he Board meets qrtety. use ofièE trairung aNi th a¥wlab* on the Ch&ity Cryntnissi¢xh Ebte. cA)rrt[S arB in to provide roasonabJ8 aSnCe aganslfrdD and 8fyDT. REFEREtICE A) ADMIMISTRATfvE tWAIL8 08821XJ09 {Englalld and e$l ReglBtered Clwlty nrtbOr 1156PA6 R•glstered offic• 37 Lar Stre CheSse8 LONDON SW10 OJL m{FAGcL¥et Dr L C Teir&S Chartered Awuntatts Elfed H1Xe, OakTree Cwrt Cardiff Gate Business Pa CARDIFF CF23 8RS 01 ¥rfl s¥JnBd bdwlfty.. Mf F A G C L(wJ¥Et
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PHELIX RESEARCH AND DEVELOPMENT Independent examlnèls r&port to the trustees of Phelix Research and Developmènt Ilhe Company'l I report to the charity Irust&ès on my exarnination of Ihe accounts of Ihe Company for tha year ended 31 Oersmber 2021. Rèsponslblllti•s and basls of report As th8 charity's trustees of the Company land also lis dlrèctr)rs for the purposos of company law) you are responsible for the prepar&t(on of Ihè accounts in acLordance wth the requiremènts of the Companies Act 2006 Ilhe 2006 Acl'l. Having 5alisfied myself that the accounts of thè Cornpany are not required lo be audited under Part 16 01 the 2006 Act and are eligible for independent examinatioft, I report in rospe¢t of my exarnination of your charitys accounts as cairied out under Section 145 of the Charities Act 2011 I'tho 2011 Act'l. In carryifig out my examinaiion I have followed the Direth'ons given by the Charity Commissth under Sedion 145151 Ib) of the 2011 Act. Indeperhdenl examiner's statem•nt I have complgled my examination. I confim) that no matters hava come to my attention in connedion wth the examination giving me cause to b&llèvè'. accounwng records were not kept in rèspert ofthe Company as required by Section 386 ofthe 2006 Act: or the ac¢ounls do not accord with th058 records,. or the accounts do not comply the accounting requirements of Section 396 01 the 2006 Aet othèr than 8ny requirement that thè accounts give a true and lair view which is not a matter nsidred as part of an independent examination,. or the accolsnts have not baèn prepared in accordance with the meihods and principles of the Statement of Recommended Practice for accounting and reporting by charities (appIable to charities proparing Ihtrir a<zoun15 in accordatKe wtth the Financial Reporting Standard apIcable in the UK and Republic of lieland IFRS 102}). I have no concems atKI have eom8 across no other matters in connection with the examination to which attention should bo drawn in this report in order lo enable a proper understanding of t1 accounts to be reached. Julia Mortimer FCCA Watts Gregory LLP Chartèrèd Accountsnls Elf8d House Oak Tree Court ardiff G8t8 8usin8$s Park CARDIFF County of Cardiff CF23 8RS 2 M8r¢h 2023 Page 3
PHELIX RESEARCH AND DEVELOPMENT STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021 2021 Unrestricled fund 2020 Total lunds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 21 Charitabfe actvItieS Research 90.243 94.943 other income 4.895 1,100 Total 95.193 96,064 EXPENDrruRE ON Charitable activities Research 95,918 114.043 NET INCOMEIIEXPENDITUREI 17251 117.9791 RECONCILIATION OF FUNDS Total frjnds brought fOard 1326.7381 1308,7591 TOTAL FUNDS CARRIED FORWARD 327,4631 326,738) The notes fom part of tt)ese financial statements Page 4
31 fEwBER 2ty21 Totsl Intartglble assets 13.131 15.33J Cash at t)ank 18.510 23,9&5 61,318 CREDITORS Am¢ffis t8[¥j CeYear 10 121,7241 12),116) 51.029 11 (37Q492) (383,28C¢l NEf ASSErs 738 HJNDS 12 Charitab ¢JJmpany is lo a%pti ftL¥n au(It undw Wion 477 of the Comparu85 2(th for th8 y end8d 31 December2021. 31 Dec4mber2CQ1 In argydm imih Sedicffl 476 ofthe CPar1e$ Ad2Ct6. Ce<npanies Aca 21ts and preparing finanCa staternents a Iwe 8nd fatr ofthe #ale ot8ff8Ers ofthe chathble ctfflparry 88 at the of eath firwncia year aTrJ of its sityLB or dthit tor eath finanisl year n ar1 with tha 2Ctb Telalngto finanoal st8t8menK sr) far as ap[Alde toth8 rknritstA8 company. Ibl yJ4'aLttothe&n#l CL¥nwies MrFAGC The n(les form FQrtoflhese financi siatsrnerts
PHELIX RESEARCH AND DEVELOPMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 STATUTORY INFORMATION Phelix Research and D8velopmenl 15 a registered charity and priv8te cornpany limited by guarantee having no share capital. Membars h8ve agroed to contribute £10 in the event of$ wnding up. The ctsmpèny is incoorated in the United Kingdom and its regtr5teted office is 37 Laroton Street, Ch¢15ea. London. SWIO OJL Thé n8lure of Ihe company's operatM)ns and pr+ncspal aetSwlie3 is disclosed wiihin the Report of the Trustees. The finan¢ial slalements a presented in Sterfing 1£), the company's fvn¢tional currency, and founded to the neare$t pound. The $ignificanl accounting policies appld in the prèp8r8tion of these financial statements ale set out bel¢)w. The58 policies have been consistenty applied to all years presented Unless otherwse sialed. ACCOUNTING POUCIES Basls of preparing the financlal ststèmonts The financial statements of the charitable company. which is a public benefit entity under FRS 102. hav6 beèn prepared in accordance with the Charitiès SORP IFRS 1021 'Accounling and Reporting by Chariti8s.. Slatement of Recommended Practice applicablè to charities preparing their accounts in accordance wilh the Financial Reporting Standard applicable in thè UK and Republic of Ireland IFRS 102 S1A Update Bulletin 11 leffective 1 J8nuary 20191., Financial Reporting Standard 102 The Financial Reporting Standard applicable in Ihe UK ènd Republic of Ireland, and the Companie$ Ad 2006. The financial slat6m&nts have bean prop8rod urKlgr the historical cost conventson. There have been no material departu$ from the Financial Rerx)rting Standard 102 1A. except in ralalron to Invèstmonl property noted beh)w. Going con¢ern Thè charity has the ongoing support ol the trustees. Ineomè All income is recogni58d in the Statement of Financial ActivilEs onee th• charity has enlitlemenl to the funds, it is probae that thè Incom& wll Taceived and the aMot can be meBSUr reliabty. Expendtturè Liabilities aro ¥ecognis8d as expenditur8 as soon as there is a legal or constructiv8 obligalK)n Committing the charity to that trxpbnditure. it is prob8ble that a Iransler of economic benefits will ba required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on ac¢nJals basis and has b8en classified under headings that aggregaie all cost relat6(J to the cgtegory. Where costs cannot be directly attributèd to parbcular headings they have been allocated to aetNitiès ork a basis consislenl with the use of resourcès. Intanglble assets Intan9ible assets acquired separately ffom a buSi$S are capltallsad al ¢o$L Subsequ8nt lo initial recognits'on, intangibl& assets are stated at cost lèss accumulal8d amortisation and ccumulaled impairment. Intangible assets are amortised on a str8ight line basis over their estimated usefijl lif6. Thè CaTrying value of intangible assets is reviewed for impairment tf èvents or changes in circumstances indicate th8 carryin9 valug may not be recoverabfe. Thè useful economic lives of intangible assets are as lolbws.. P3tènts- 10 years Taxation Thè ¢harity is 8xempl from corporation tax on its charitable aclivlues. Fund 4c¢ounting Unreslricied funds can ba In accordanca with tha charitsblo objective8 at the discretion ol th8 truslo0$. P89¢ 6 onlinLEad...
PHELIX RESEARCH AND DEVELOPMENT NOTES TO THE FINANCIAL STATEMENTS- contlnuèd FOR THE YEAR ENDED 31 DECEMBER 2021 ACCOUNTING POLICIES- continued Fund accountlng R•stricted funds c8n only be used for particular restrlcted purposes within the objects of the charity. Restrictions arFse when specifjed by the donor or whèn fund$ are raised for particular restricted purposes. Further explanation of the nature and purpose of fund is included in the notes to the finanaal stalements. CHARITABLE ACTIVITIES COSTS Direct Costs Isee nole 41 Support costs TotBI$ Research 95.855 63 95.918 OIRECT COSTS OF CHARITABLE ACTIVITIES 2021 2020 Fees lo Leicester Untversity Legal & prolessional fees Govemance costs Foreign currency gainsAossÈs Websile Maintenance Depreciation 90.146 3,250 105,374 553 780 5,118 11,139} 629 2.189 2,189 95.855 114.014 NET INCOMEIIEXPENDITUREI Nel incornellexpenditurel is statèd aftèr Chargin(credIbgI-. 2021 2020 P81gnts 8nd licences amortisatKsn Independent examination 2.189 780 2.189 780 TRUSTEES. REMUNERATION AND BENEFITS Thère was no trustees, remuneration or other beneffiis for the year erKled 31 December 2021 or lor the period ended 31 December 2020. Trustee8' expenses There were no tfustees, expenses paid for yèar 8nd8d 37 December 2021 or for the period and•d 31 December 2020. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES l income and expenditure in the period tts 31 December 2020 was unrestricted. Page 7 continued...
PHELIX RESEARCH AND DEVELOPMENT NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 DECEMBER 2021 INTANGIBLE FIXEO ASSETS P8t&nts nd li¢en¢es OST Al 1 January 2021 and 31 December 2021 21.887 AMORTISATION At 1 January 2021 Charge for year 6.567 2.189 At 31 De¢èmbgr 2021 8.756 NET BOOK VALUE At 31 December 2021 13,131 Al 31 December 2020 15,320 DEBTORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR 2021 2020 Accrued income 18,510 23,985 10. CREDffORS". AMOUNTS FALLING DUE WITHIN ONE YEAR 2021 2020 Ac¢ruals and deferred income 21.724 20.116 11. CREDITORS: AMOUNTS FALLING DUE ER MORE THAN ONE YEAR 2021 2020 Loan from InJste& Other loans 311.305 311.305 378.492 383.260 Th* loan from trustee has a term of six years and provides funding faCltIeS to the charity to undertake its $è8rttt WQfk. The Eoan ¢s interest free and will only be repayable after the charity s&cures sufficier41 ndtrptrndenl funding. Th8 8(kli¢iorsal loan has a temi of four years and also provides funding facilities to the charity tr> carry out Its research work. Th8 loan is interest fre& and wsll only be Payabl If rev6nu8 1$ 9ontrr81gd frorn licensing its patents. 12. MOVEMENT IN FUNDS Net movem1 in funds Al 31112r21 At 111121 Unrestricted funds General fvnd 1326.7381 17251 1327,4631 TOTAL FUNDS 326,738} 327,463) Page 8 continued...
PHELIX RESEARCH AND DEVELOPMENT NOTES TO THE FINANCIAL STATEMENTS- eontinued FOR THE YEAR ENDED 31 DECEMBER 2021 12. MOVEMENT IN FUNDS - contlnuèd Nel movemenl in knnds, included In the abovg are 8$ follows.. Incomir iesources Resources expended Movement in funds Unrestricted funds General fund 95.193 {9S,978} l7251 TOTAL FUNDS 95.193 95,9181 Cornparativ8s for mgverngnt in funds Net movement in funds At 111120 31112120 Unrestricted fvnds Gener81 fur 1308,7591 117,9791 1326,738) TOTAL FUNDS 308.7591 17.9791 326.7381 cOmrat4ve nel moVeMt in funds, included in thè èbove arè as follows-. Incoming resources Re8ource$ èxpendgd Movement in fvnds Unr•$trietèd funds General lund 96,064 (114.0431 (17.9791 TOTAL FUNDS 96,064 114.0431 17.9791 13. RELATED PARTY DISCLOSURES There were rK) related paty transactions for tha year end8d 31 Decèmbor 2021 that r9quify disdosLtre, other than Ihtr k)8n from Iru51ee as disdosed in note t1. Pagè 9