On the Edge Conservation Group Reports and Financial Statements For the nine months ended 31 December 2021 Charity re¥strtiOn number.. 1163124 Company registration number.. 09646831
On The Edge Conservation Contents For the nine month5 ended 31 December 2021 Contents Page Charity Reference and Administrative Details Trust¢¢s' Annual Rcport Independent Auditor's Report Con%olidated %tatement of financial aCtitIe Charity only Siatement of Financial Activities Ilncluding Income and Expenditure Account) Balance Sheet5 10 Con501idated Cash Flow Stateinent 12 Notes to the Financial Staiements
On The Edge Conservation Details For the year ended 31 December 2021 Charity registration number 1163124 CompaDy registration number 09646831 Trustees Beth Blood David Blood Alexandet Marshall Lara Lebwasbick Tamara Amold Iresigi)ed 13 May 20221 Reglstered offiee 25 Ives Street Chelsea. Londo SW3 2ND Independent Auditor Saffery Champness LLP 71 Queen Victoria Street London EC4V 4BE Solicitor Bates Wells at]d Braithwaite London LLP 10 Queen StTeet Placc London EC4R I BE Bankers Handlesbanken 2 Flooi 125 Kenbington High Stteet Londoii W8 5SF
On The Edge Conservation Trustee5' Annual Report For the nine month5 ended 31 December 2021 The Trustees. who are alsLI Directors of the company for the purposes of the Companies Act 2006, present their report and the audited financial statements of the group and chariiy for the nine months ended 31 December 2021. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and Loiijply with the charity's governing document, Ihe Charities Act 2011. the Companies Act 2006 and Accounting and R¢porting by Charitic8.' Statcm¢nt of Rccammcnd¢d Practic¢ applicable to ¢haritics pr¢paring th¢ir accounts in accordancc with thc Financial R¢porting Standard applicablc in the United Kingdom and Rcpublic of Jr¢land. Trustees of the charity Thc d1ctorS of th¢ charitabl¢ company its T$t¢¢5 for thc purpos¢s of charity law. Th¢ Board of Trllst¢¢s, that mccts four timcs a y¢ar, administ¢rs th¢ Charity in accordan¢¢ with th¢ Arti¢l¢s of Association and th¢ Charity Gov¢rnancc Codc as applicabl¢ to thc sizc of th¢ Charity. Trustees serve for a teTm of three year5 and may be appointed for two further tem]s (9 years),. or longer if agreed by the Board. Open positions are advert15ed on the charity'5 website, inviting applications, with appointments being made after InteIeW with the Chair {or delegated Ttustee). Newly appointed Trustees receive a letter of appointment and an induction pack. The Board ha5 a wide skills base and cross-sector experience. Each Board meinber is required to declare any interests, dire£torships or positions which inay conflict Trth any actual or proposed atTdngements with the charity. Such interests are reviewed and authorised annually. Training needs are assessed and inet as required. Objects The Charity's objects are.. To promote for the benefit of the public the conservation, protection and improvement of the physical and naturdl environment and ihe conservation and protection of endangered St¢teS or flora and fauna. To advance the education of the public in the conservation, projection and improvement of the physical and naturdl environment and the consenwation and protection of endangered species or flora and fauna. Goa15 Our g(yal is to inspire curiosity, respecL ainbition and action for the natural world. We believe a susiainable future for all life on earth is possible but only if we transfLlrnI the way we treat nature. On the Edge, is committed to reconnecting the public with the value and importance of biodiversity. as well as bringing about lasting, large-scale change to protect and re*stablish Species populations and ecosystems across the world. We aiin to create a voice for nature in the digital age. Our powerful new narratives will raise the prolile of diverse species and increase einpathy for thein, their fragile tmbitats and the people that protect thein. Our ultimate aim is to help society place an intrinsic value on the natural world and commit to its protection and restoration. As a science-based organisation. we will apply analytical rigour to our storytelling, just as we do with Liur conservation projwts in th¢ ficld. OL goal is to bceom¢ th¢ Icad¢r in th¢ scicnc¢ and art of ¢ommiinicating natu, blcnding thc scicntific m¢thod with thc eativ¢ pro¢css. W¢ want to cxpcrim¢nt with ways to ¢oJnmunicat¢ and qiiantify what's working, what's not, and why. Th¢ narrativ¢s having th¢ grcatcst impact thosc that mcasurably incrcas¢ positive scntimcnt taward othcr 5CleS and the natural world. By taking this approach, w¢ hop¢ to ¢at¢ a playbook that Can b¢ applicd to any ar¢a of natur¢ Ihat qui$ bcti¢r advoca¢y.
On The Edge Conservation Trustee5' Annual Report For the period ended 31 December 2021 Philosophy and brand values We stand for exploration. discovery, humour. hope and innovation. We are not afraid to deal with challenging issues but avoid being self-righteous or too eamest. We mix the worry and the wonder with much more focus on the wonder. Our story¢elling voice, by extension, is playful and positive. But ultimately, we are a science-led organisaiion ihat is always willing to adapt any approach based on the besi available data. Key achievements 111 the period: Season two of our YouTube series Hi I'm Eiidangered launched, and we reached the milestoiie of 5,000 followcTS on Instagram. Save the Purple Frog mobile game was released and was particularly well received in India where we have simultaneously launched the Westem Ghats regyonal campaign. This entails a series of l(Kally lead mini documentaries highlighting the importance of the Westem Ghats as an EDGE Zone and profiling Evolutionarily Disiinct and Globally Endangered IEDGEI ScleS that urgently need consejvation attention. Our goal is to increase awareness of the Westem Ghats as a critical area for bi(Kliversity and ensure at least ten species receive conservation attention. We have also made great progress ot) our scientilic objectiveb. At the IUCN Woild Conseivation Congiebs, we had a series ol'well attended prebentations hi¥FhligFhtin¥ the work of On The Edge. We also presented a country level indicator that will help measure attitudes toward nature through time. We are hoping that this indicator will be adopted by the Convention on Biological Diversiry ICBD). Future Plans On the Edge balances its actii'ities between nature-promoting media and games, grants and fellowships, and high- impact campaigns thai tie together our media and conservation work. Broadly we are focusing on three workstreams.. siorylelllg To help make the case for nature to a digital generation, On the Edge is pft)ducing content for different platfornis using a variety of stoTrtelling techniques. Efforts are currently focused on.. Production of short and long form contcnt ta shin¢ a light on th¢ aw¢ and wond¢r of natur¢ using main5trcam mcthods. Audicnccs arc guided on how to cxplo ¢nvironmcntal topics ftirthcr, including on our w¢bsit¢ and other trust¢d sourc¢s. Growing and evolving our mobile gaming slate. More games and species will be added to our collection. while game play will continue to be refined to ensure they remain entertaining and fun as they inform players about the natural world. Suppoiiin¥ social media conteiit treators [reatOrs0ntheedgeI to share their thoughts aiid feelings for nature with their followers. The first cohort of influencers spoke of how nature and mental health are linked. The second cohort focuses on the intelligence of other fom18 ol'life. ScienLc andconscrvaliopi W¢ hav¢ a particular intcrcst in EDGE skK¢i¢s. Th¢y rcprcscnt thc most uniqu¢, and thr¢atcncd lin¢ag¢s on thc planct y¢t arc oft¢n ov¢rlook¢d by conscrvationists. On th¢ Edgc provid¢s financial support and guidan¢c to local ¢on8crvationists, organisations and communitics. which in¢lud¢s building thc capacity of in-county cons¢rvationists and promot¢ community ¢o-¢xistcn¢c with wildlifc and natur¢. EDGE Zon¢s is anothcr arca of particular int¢r¢st. Campaign grants for this initiativ¢ ar¢ aim¢d at achi¢ving ¢onscrvation outcom¢s and raising awam¢s$ of EDGE zoncs as important biodivcrsity hotspots. Th¢s¢ grants support a mixtur¢ of storyt¢lling initiativ¢s and local conscrvation cfforts and gcncrally run ovcr a multi-y¢ar p¢riod.
On The Edge Conservation Trustee5' Annual Report For the period ended 31 December 2021 Impuci meu6uremenl On the Edge has and continues to develop tools and metrics to monitor both project-level impact and trends identifying whether we are achieving our goals of greaier emparhy towards other species and the willingness of people to take conservation action. Part of this work includes the development of an Al-based sentiment tracker capable of monitoring sentiment toward species. ecosystems, and the people that secure them. Grunls We seek out potential grantees with activities that align with one or more of our thematic aims. This is done through in- house eXrtISt and institutional connections wthin the philanthropic and consetvation sectors. We do not accept unsolicited requests foT funding. A sumn of our Cent artisationllndividu#l Zoological S(xiety of London IZSLI; EDGE of Existence Program Global IUCN Species Survival Commission (SSCI: EDGE grants (Global) rants are as follows.. Total #mount £500.000 Pro'eet duration 2018-2022 $59,530 (USD) $77,000 USD £275,000 £50,000 0,000 (NZDI 2020-2021 2021-2022 2020-2023 2020-2022 2021-2022 Australian Wildlife Conservanc Mada Mauri Ora Kakapo TSDepartMent of Conservation (New Zealand ZSL- AnbFel Shark Project.. Wale5 IUKI Australia £75,OIM) £40,000 £12,824 £180,000 £48,000 £ioo,000 2020-2021 2021-2023 2019-2022 2021-2024 2022-2023 Simon Watts- The U l Animal Preservation s(let Nature Conservation Foundation India The National C.enire for Eliological Sciences (India) Tim Flach - world leadin nature hoto her UK 2021-2022 Jn addition ta ow grant-making, w¢ sponsarcd th¢ IUCN SSC Chair's affi¢¢ in hosting a Rcv¢r8¢ th¢ R¢d Pavilion cxhibition spa¢¢ at thc IUCN World Conscrvation Congrcss in Scpt¢mb¢r 2021 Id¢laycd from 2020 dii¢ to Covid-191. As part of this, On th¢ Edg¢ chair¢d thr¢c wssions in th¢ Pavilion. Public benefit statement The Trustees confirm that they have coinplied their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties. Strueturei governante #nd management On The EdbFe Con5eTVatioii was incoTrorated as a cliaritable company limited by ¥aranteE on 18 June 2015 (Reg. No. 9646831 l and rebTlSteted as a charity on 13 Au¥st 2015 (Reg. No. 1163124). On the EdbFe Ptoductions Limited (Reg. No. 9660075) is a wholly owned subsidiary of On the Edbwe ConseTration. This entity holds IOO/o of the IlbThts to the an7ted TV series and any futuie ancillary initiatives ielated to the braiid. OTEP Limited (Reg. No. 9714151 } is a wholly owiied subsidiary of On the Ed¥Fe Productions Liinited nd 15 the production vehicle for the first &eason of the n7ted TV show. OTEP 2 Limited (Re¥. No. 127362251 is also d wholly owi]ed subsidiary of On the Ed¥ PrtK]uctions LiTnited and i& the production vehicle foi the inotion CptUre YouTube chaniiel. Day to day nRa¥Fement of the activitle5 l5 caled out by the CEO and chair of trustees Beth Blood with the support of the team.
On The Edge Conservation Trustee5' Annual Report For the period ended 31 December 2021 Risk Reiryew The Trustees have assessed the major risks to which the charity is exposed, including those relating 10 financial. operational, compliance and governance issues. The Trustees review risks annually and are satisfied that systems are in place to mitigate exposure to those risks. The most critical risk to the charity is the loss of funding from David and Beth Blood, which supports the Charity's objectives. If David and Reth are unable or unwilling to provide funding. this will restrict the Foundation's ability to grow further or mean that grants and research aciiviiies may need 10 be scaled back. However, the trustees consider this risk unlikely. Financial reTrryew- Results for the year and reserve5 The charity had donation income of £2,175,82510312021.. £1,456,288) frorn Trustee David and Beth Blood {including Gift Aid) and expendIre of £329,750 (0312021.. £441,613) in conservation grants and £1,564,793 {0312021.. £1,580,217) in stOTJlelling, impact analysis, marketing, and operational expenses. The charity's reserves were in surplus by £1,066,033 as at 31 December 202110312020.. £944,751). As outlined above, the charity owns IOOO/o of On the Edge Productions Ltd, OTEP Ltd and OTEP 2 Ltd. These subsidiary companies are in start-up mode whilst they deN'elop digital content for a generation Z audience iising EDGE species as our ambassadors. In the future, alongside the social impact of these activities, it is intended that the subsidiaries will genernte an ongoing revenue stream that can be Emssed to the charity to fund conservation activity. For the 9 months ended 31 December 2021. the group had a surplus of £192,442 (0312021 surplus £55,843). Fundraising The Trustees take their responsibility under the Charities (Protection and Social Investrnentl Act 2016 seriously and have considered the implications on the charity's activities. The charity currently does not actively ndraISe and therefore the trustees do nL)t consider it necessary at this point to have a fornial fundraising PL)licy in place. There have been no complaints with regard to fundraising in the year. Reserves policy The tTU8te£% aim to maintain free re%erve8 at a level which equates to approximately one year of fixed charitable coQs {e.g salaries, compliance and wcupancy costs etc.). The trustees consider that this reserve level will provide sufficient funds to respond to applications for granis and ensure Ihat support and governance costs are covered. The Irusiees consider that this is sufficient given the philanthropic commitment of David and Beth Blood to provide annual funding to On the Edge Con5eTr'ation. The Tnjstees are &qtisfied that this conunitment TrI] allow the charity and 5ub5idiaries to develop as intended over the next year. At the year end the charity held free reserves of £1,037,667 {0312021 £752,180). StAtement of trustees, responsibilities Th¢ trustccs (who arc also dircctors of On Th¢ Edg¢ Conscrvation for th¢ pun)os¢s of company law) ar¢ r¢sponsiblc for PT¢paring th¢ Trustc¢s' Rcport and thc financial statcm¢nts in a¢¢ordan¢¢ with applicabl¢ law and Unit¢d Kingdom Accounting Standards Iunitcd Kingdom Gcn¢rnlly A¢ccpt¢d Accounting Practic¢).
On The Edge Conservation Trustee5' Annual Report For the period ended 31 December 2021 Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and eXnditure, of the charitable group for that period. In preparing these financial statements: the trustees are required to.. select suitable accountinb policie5 and then apply them consistently; obs¢rv¢ th¢ mcthods and principl¢s in th¢ Chariti¢s SORP (FRS 102). make judgements and estimates that are reasonable and prudent,. state whether applicable accounting standard% have been followed, %ubject to any mateTial departures disclosed and explained in the fjnancial Statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are Te5poll5ible for keeping proper accountinbT records that disclose with reasonable accuracy at any time the financial position of the cliaritable coinpany and enable them to ensure that the financial statements comply wth the Companies Act 2006. They are also responsible for safeguarding the assets of the chaTitable conipany and the group and hence for taking rea50[b]e steps for the prevention and detection of fraud and other i¢gu[aritIes. In so far as the trustees are aware.. there is no relevant audit infonnation of which the charitable company's auditor is unaware; and the ttusteeb have taktn all btepb that they oubl)t to have taken to make themselveb aware of any relevkmt audit infotmation to establibh that the auditol ib aware of that info[ntIOn. Preparadon of the report This report l)ab been prepared takin¥ advantage of the S]] companies. exemptioii of section 415A of the Compaiiies Act 2006. This report was approved and authotibed lui issue by the fiusteeb on 13 1121 2022 and signed on their behalf by.. Chair of Trustees
On The Edge Conservation Independent rduditor's report to the members For the period ended 31 December 2021 Opinion We have audited the fitmncial statements of On The Edge Conservation {the 'parent charitable Lompany'l and its subsidiaries (the 'group'l for the year ended 31 December 2021 which comprise the consolidated statement of financial activities, charity stateinent of finanLial activities, balances sheets, Lonsolidatsd Lash flow statement and notes to the financial statements, including significant accouniing policies. The financial reporting framework that has been applied in th¢ir pParation is applicablc law and Unit¢d Kingdom Accoltillg Standards, including Financial Rcporting Standard 102, thc Financial Rcporting Standard applicabl¢ in thc UK and R¢publi¢ of Ircland (Unitcd Kingdom G¢ncrally Acccptcd Accounting Practic¢l. Jn aur opinion th¢ finan¢ial stat¢m¢nts'. give a irue and fair view of the state of the affairs of the group and the parent charitable coinpany as at 31 March 2021 and of the parent charitable company and group's incoming resources and application Lif resliurces. including its income and expenditure, for the year then ended; have been prOrIY prepaTed in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006. Jlasis for opinion We conducted our audit in accordance with International Standards on Auditing {UK) {ISAs (UK)) and applicable law. Our responsibilities under those standards ajy further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the finaiicial stateinents, we have concluded that the trllstees, use of the going concem basi5 of accounting in the prepatation of the financial statements is approptiate. Based on the work we have performed, we have not identified any terial uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group OT the parent charitable company's ability to continue as a going concern for a period of at least twelve moiiths from when the financial statements are authoTised for issue. Our Tesponsibilitles and the responsibilities of the tTUStees Thqth respect to going conc£rn are described in the Televant Sections of thi5 Tewrt. Other information The tTUSte£s aTe Tesponsible for the other inforn]ation. The other information coinprise5 the infonnation included in the annual Teport, other than the financial stateinents and our auditor's report thereon. Our opinion on the financial stateinents dS not cover the other infonnation a]id, except to the extent otherwise explicitly stated in our report, we do not express any fonn of assurance conclllsion thereon. Our responsibility is to read the other inforniaiion and. in dL)ing so, consider whether the other inlL)nnaiion is materially inconsistent with the financial statements or our knowledge obtained in the Lourse of the audit or othenvise appears to be materially missrated. If we identify such material inconsistencies or apparent material misstatenients, we are required to deterniine whether this gives rise to a material Inisstatement in ihe financial staiements themselves. If, based on ihe work we have perfomed. we conLlude that there is a material Inisstatement of this other infonnation: we are required to report that fact. We have nothing to report in this regard.
On The Edge Conservation Independent rduditor's report to the members For the period ended 31 December 2021 Other matters prescribed by the Componies Act 2006 In our opinion, based on the work undenaken in the course of the audit.. the infon]]atlOll bFiveii in the Truste£s' Annual Report which include5 the Direct015' Report for the filncial year for which the financial stateinents re piepated is consistent M'ith the finncial statements; aiid th¢ Trustccs, Annual R¢port which includcs thc Dir¢ctors' R¢port has txcn prcpar¢d in accordancc with applicabl¢ l¢gal Tcquircmcnis. Matters on Ivhleh we are requlred to report by exceptlon In the light of the knowledge aiid understanding of the group and the parent charitsble company and their environment obtain¢d in thc cours¢ of th¢ audit, w¢ hav¢ not id¢ntifi¢d matcrial misstat¢m¢nts in thc Trustc¢s' Annual Rcport. W¢ hav¢ nothing to r¢port in r¢sp¢ct of th¢ following mattcrs wh¢TC th¢ Compani¢s Act 2006 Tcquirc us to r¢port to you if, in our opinion.. adequate accounting records have not been kept by the parent charitsble company, or returns adequate for our audit have not been received from brnnches not visited by us,. or the parent charitable compally financial .tateMent are not in agreement with the accounting record% and Teturn8' or certain disclosures of trustees, remuneration specified by law ajy not made,. or we have not received all the inforniaiion and explanations we require for our audit. or the trustees were not entitled 10 Prepare the financial statements in accordance with the small companies regime and to take advantage of the small companies exemption in preparing the Trustees, Annual Rew)rt and the Strategic ReLX)rt. Responslbllltles of trustees As explained more fully in the Statement of Trustees, Responsibilities set out on page 6, the Irustees {who are also the directors of the parent charitable company for the PUTfK)ses of company lawl are responsible for the preparation of Ihe financial statements and for being satisfied that they give a twe and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of the financial ststements that are free from material missiaiemenL wheiher due to fraud or error. In preparing the financial statements, the trustees are responsible for assesstng the group and the yarent charitable company's ability to continue as a going concern, disclosing, as applicable, nwtiers related 10 going concern and using the going concern basis of accounting unless the trusiees either intend to liquidate the group or Ihe parent charitable company or to cease operations, OT have no realistic altemative bui to do so. Auditor's responsibilities for the audit of the fJnanei#l statements We have been appointed as auditors under the Companies Act 2006 and Teport in accordance with regulations inade under that Act. Our objectives are to obtain reasonable assurance about whetlier the group and parent financial statements a5 a whole are free from material misstatement, Ivhether due to fraud or e0[, and to issue an auditor's report that include5 our opinion. Reaso[b]e assurance is a high level of assurance, but is not a guarante£ tliat an audit conducted in accordance with ISAS (UK) TrI] always detect a material mi5Statement when it exists. Mi5Statement5 can arise froin fraud or eor and are considered inateTial if, individually or in the a&gregTate, they could reasonably be expected to influence the economic decisions of users taken on the basi5 of these financial Statements. Irregularities, including fraud, ajy insthnces of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including frauLt The specific pttedures for this engagement and the extent to which these are capable of detecting irregularities. including fraud are detailed below.
On The Edge Conservation Independent auditor's report to the members For the period ended 31 December 2021 Identifving and ossessing risks related to irregularities: We assessed the susceptibility of the group and parent charitable company's financial statements 10 material misstatement and how fraud Might occur. including through discussions with the trustees. discussions within our audit team planning meeting.- updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent charitable company by discussions with trustees and updating our understanding of the sectors in which the 0Up and parent charitable company operate. Laws and regulations L)f direct significance in the context of the wup and parent charitable company include The Companies Act 2006 and guidance issued by the Charity Commission for England and Wales. Audit response to risks identified: We coiisideTed the extent of coinpliance with these laws and regulations as part of our audit procedures on the related financial statetnent items including a review of financial statement di5c105ures. We reviewed the parent chaTltable company'5 records of breaches of laws and regulations, minutes of meetiiigs and correspondence with relevant authoTlties to identify potet]tial material misstatement5 arising. We discussed the parent charitable company's policie5 and procedures for compliance with laws and regulations with meinbers of management Tespot]5ible for coinpliance. During the planning meeting with the audit team, the engagement partner drew attention to the key area5 which might involve non-coinpliance Th'ith laws at]d Tegulations or fraud. We etwiiired of management whether they were aware of any instances of non-compliat]ce with laws and relIatIO]iS or knowledge of any a£al, suspected or alleged fraud. We addressed the risk of frnud through manageinent oierride of controls by testing ihe appropriateness of joumal entries and identifying any significant transactions that were unusual or outside the nonnal course of business. We assessed whether judgemenis made in making accounling estimaies gave rise to a possible indication of management bias. At the complelion stage of ihe audit, the engagement partner's review included ensuring thai the team had approaLhed their work with appropriate professional scepticisrn and thus the capacity to identify non-compliance with laws and regulations and fraud. There are inherent limitations in the audit predureS described aboi'e and the further removed non-compliance with laws and regulations is from the ei'ents and trdnsactions reflecied in the financial statements, the less likely we would becoine aware ol-it. Also, the risk ol-not detecting a malerial misstatement due to fraud is higher than the risk of not detecting L)ne resulting from error, as frdud may involve deliberate concealment by. for example. forgery or intentional misrepresentaiions. or through collusion. A further description of our responsibilities is available on ihe Financial Rcporting Council'5 wcbsit¢ at.. vw.frc.or .uWauditorsrcs onsibilitics. Thi5 dcs¢ription fornis part of our auditor's port. Use of our report This rcport is madc solcly to th¢ par¢nt charitablc company's mcmb¢rs, as a body, in accordanc¢ Mqth Chapt¢r 3 of Part 16 af thc Compajiics Act 2006. Our audit work haE b¢cn undcrtakcn si) that ive might %tat¢ to thc parcnt eharitablc company's mcmbcr.% thosc mattcrs w¢ ar¢ qUir¢d to statc to th¢m in an auditor's rcpart and for no othcr purpos¢. To th¢ lIct cxtcnt pcrmittcd by law, wc da not aec¢pt or assujnc rcsponsibility to anyon¢ othcr than thc parcnt charitabl¢ ¢ompany and thc par¢nt charitablc company's m¢mb¢rs as a body, for our audit work, for this rcport, or for th¢ opinions w¢ hav¢ fornicd. Jamic Ca8%cil nior Statutory Aiiditorj for and on behalf of Saffery Champness LLP Date 21'December 2022 71 Queen Victoria Stre£t London, EC4V 4BE Chartered Accountant Saffery Champnes5 LLP is elibTible to act an auditor in tetms of &ection 1212 of the Coinpanies Act 20(kS io
On The Edge Conservation Con501idated Statement of Financial ActiTrryties For the period ended 31 December 2021 31 Deeember 2021 31 December 2021 31 March 2021 Unrestricted funds Total Total Note Income from eharitable aetivities: Donations Total income 2,175,825 2,175,825 2,175,825 2,175.825 1,456,288 1,456.288 Charitable expenditure: Conservation and Science 554,060 1,363,215 194.212 2,111,486 554,060 1.363,215 194,212 2,111,486 762,278 1,149,331 110,220 2,021,829 Marketing and Storytelling Impact Measurement Total expenditsre et incomel(expenditure) before tax 64,339 64.339 1565.541) Tax credit 72,260 72.260 71,663 Net in¢omel(expenditsre) 136,599 136,599 1493,878) Net movement in funds 136,599 136.599 1493,878) Reconelliatlon of funds: Total funds brought fonvard 55,843 55.843 549,721 Total funds eArried for)Tr#rd 192,442 192,442 55,843
On The Edge Conservation Statement of Financial Activities (Including Income and Expenditure Account) For the period ended 31 December 2021 31 December 2021 31 December 2021 31 Mareh 2021 Unrestricted funds Total Total Note Income from eharitable aetivities: Donations Total Ineome 2,175,825 2,175,825 2,175.825 2,175,825 1,456.288 1,456,288 Charitable expenditure: Conscrvation and Scicncc Marketing and Storytelling Impact Mca8urcm¢nt Total expenditsre 551.958 1,129,181 213.404 1,894,543 551.958 1,129,181 213.404 1,894,543 633,162 1,185,522 74,549 1,893.233 Loss on Invebtment Net incomel(expendilure) 160,000 121.282 160,000 121.282 (436,9451 Net movement in funds 121,282 121,282 (436,9451 Recnnciliation of fund5: Total funds broUt forward 944,751 944.751 1,381,696 Total funds carried forward 1,066.033 1,066.033 944.751 All income and expenditure derive from continuing activities. 12
On The Edge Conservation Balance Sheets A5 at 31 December 2021 31 December 2021 31 Mareh 2021 Note Lharity tiroup Flxed assets Fix¢d Asscts Intangible Asseis Invcstmcnts 28,365 28,365 32,598 205,670 32,570 16Q,001 192,571 28,365 28,366 238,26R Current assets Trade and other receivables Cash at bank and in hand 184,205 919,867 1.104,072 185,162 918,492 1,103,654 196,351 565,736 762,087 248,815 555,841 804,656 Current l.iabilities Trade and other payables Net current assets 10 1939,995) 164,077 165,987) 1.037,667 1944,511) 1182,425) {52,476) 752,180 Net a55et5 192,442 1,066,033 55,843 944,751 Charity Funds Unresiricted funds 192,442 1.066,033 55,843 944,751 Total funds surplus 192.442 1,066,033 55,843 944,751 Th¢ financial statcmcnts havc bc¢n prcparcd in accordan¢¢ with thc sp¢cial provisions applicablc to small Companies within Part 15 of thc Compani¢s Act 2006. The financial statement5 were approved and authoiised for issue by the Ttustees on 131121 Signed on behalf of the boaTd of trustees 2022. Beth Blood Trustee The notes ot) pages 14 to 22 fom part of these financial statements. Compat)y registrntion t)umber.. 09646831 13
On The Edge Conservation Con501idated Cash Flow Statement A5 at 31 December 2021 31 December 2021 31 March 2021 Cash flow5 from operating activities: Net incomel(expenditurel for the reporting period Depreciation and aMOrtiatiOn Impairnient of inlangible asset {IncreaSe)IdeCreae in debtors Increase/(decrea5el in cieditors Net cash provided byllused in) operating activities 136,599 36,509 263,631 12,146 (4,5161 444,369 (493.878) 20,713 (145,591) (130,5021 (749,258) Cash floiv from investing actIlieS. Purchase of otTice equipmentlcomputers Purchase of intangible asset (6,088) {84,150) 190,2381 122,469) (188,100) 1210,5691 Change in cash and cash equivalents in the reporting period 354,131 (959.827) Cash at bank and in hand at the beginning of the reponing period 565,736 1,525,563 Cash at bank and in hand at the end of the reporting period 919,867 565,736 Analysis of £hanges in net debt: At Start of the perlod At end of the perlod Cash Inflows Cash 565,736 354,131 919,867 Total 565 736 354 131 919 867 14
On The Edge Conservation Notes to the Financial Statements For the period ended 31 December 2021 Summary of significant accounting policies (a) General information and basis of preparation On The Edge Conservation is a charitable company registered in England and Wales. In the event of the charity being wound up. the liability in respect of the guarantee is limited to £1 per member of the charity. Total of such guarantees at 31 December 2021 was £310312021.. £3). The address of the registered office is given in the charity infomation on page 2 of these financial statements. The nature of the charity's operations and principal activities are as set out on page 3. The tTU5te£s elected during the petiod to change the financial year end to a calendar year11 January to 31 December) to align with PToduction planning. These fit]ancial statements have been prepared for a 9-month peTiod to align to 31 tkcember 2021. The comparative is a 12-month petiod. The charity constitutes a public benefit entity as defined by FRS 102. The TStee5 confirm that they have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties. The financial statements have been prepared in accordance with Accounting and Reporting by Charitle5.' Stateinent of Recommended Practice applicable to charities PTepaTing their accounts in accordance with the Financial Reponing Standard applicable in the UK and Republic of Ireland IFRS 102), the Charities Act 2011. the Coinpanies Act 2006 and UK Generally Accepted Accounting Practice. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional cuencY of the charity. At the time of approving the finanLial statements, the trustees have a reasonable expectation thai the Charity has adequate resources tl) continue in operational existenLe for the foreseeable future. David and Beih Blood hai'e made a philanthropic commitment to providing funding lor On the Edge Conservation. This conunitment has not changed in light of Covid-19. Thus the Trnstees continue to adopt the gliing concern basis ol'accouniing in preparing the financial statements. Th¢ con80lidatcd financial statcmcnts includ¢ thc financial stat¢m¢nts i)f all subsidiaTl¢S. Th¢ fJnan¢ial statcmcnts af sub.%idiarics ar¢ includ¢d in th¢ ¢onsolidatcd financial statcm¢nts from the dat¢ on which Control ovcr th¢ op¢rating and fJnan¢ial dccisions is obtain¢d and c¢as¢ to bc consolidat¢d from th¢ datc on which ¢ontrol is transfcrrcd out of thc Groiip. Control ¢xi8ts wh¢n thc Company has th¢ pow¢r, directly or indircctly, to gov¢rn th¢ flnancial and 0ratIng policics of an ¢ntity so as ta obtain cconomic bcn¢fit8 from its activitics. All int¢r¢ompany balanc¢s and transactions hav¢ b¢cn ¢liminatcd in full. Th¢ significant accounting policics applicd in th¢ prcparation of thcsc financial statcmcnts arc sct out b¢low. {b) Funds Unrestricted funds ale available for use at the discretion of the tiustees in futthetance of the generdl objectives of the Lhaiity and which have not designated for other purposes. Cutrently the chaiity only has unrestricted tunds. {e) Income recognltAon All income is included in the Statement of Finai)cial Activities (SOFA) when the chaiity is legally entitled to the income after any ptrfotmance conditions have been met, the ainount can be measured reliably and it is probable that the incoine will be received. 15
On The Edge Conservation Notes to the Financial Statements For the period ended 31 December 2021 For donations to be recognised the charity will have en notified of the amounts and the setilemeni date in writing. If there are conditions attached to the donation and this requires a level of perforniance before entitlement can be obtained then income is deferred until those conditions are fully met or the lfIlment of those conditions is within the control of the charity and it is probable that they will be fulfilled. (d) Expenditure recognition All expenditure is accounted for on an accrual's basis. All costs can be directly attributed to an expense category. Irrecoverable VAT is charged as 10 the relevant expense as incurred. (e) Critical EstimAtes and Judgements In the appliLation of the Charity's accounting policies, the Trustees are required to make judgenients, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historiLal experience and other factors tl)at are considered to be relevant. Actual results may difter from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in whiLh the estiniate is revised where the revision affects only that period, or in the peri(xl of the revision ai)d future periods where these are affected. The Trustees coi)sider the most si]fICallt judgement in the accounts to be the estimated useful life of the fixed and intangibl¢ ass¢ts. Following th¢ launch of thc two mobil¢ gamcs, th¢ trust¢¢s w¢r¢ adviscd that r¢v¢nu¢ str¢ams from thc games would takc morc timc and invcstmcnt in th¢ gam¢ play. Th¢rcfor¢, thc trust¢¢s rcsolvcd to impair th¢ intangibl¢ gamc asscts at 31 tk¢¢mb¢r 2021. (fj Employee benefits Shori ierm beNefils Short tcrm bcncfits, including privatc m¢di¢al insuranc¢ arc rccognis¢d as an ¢xp¢nsc in thc period in which the service is received. Pension schemes The contributions to defined contribution plans are recognised as an expense when they are due. Termination benefits Tem11rtIOn benefits are payable when einplo)qnent is teTminated by Chrity. 01 whenever an employee CcePt voluntdry iedunddncy in exch¢ for the&e benefits. Tile Group reco¥mise5 teTmination benefits when it is demonstrably coinmitted to either li) tetminatlTlbF the einployment of cutrent einployees accordinbF to a detlled fonnal plan without pos&ibility of thd[Wl or (ill prlividing termination benefiis as a result of an offer of voluntary redundancy. (g) Financial Instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. The charity has elected to apply the provisions of Section I I 'Basic Financial Instnmienis, and Section 12 '0ther Financial Insiruments Issues, of FRS 102 to all Lif its financial instruments. 16
On The Edge Conservation Notes to the Financial Statements For the period ended 31 December 2021 (h) Property. plant and equipment Property, plant and equipment is stated at CL)St less accumulated depreciation and impairnient losses. Depreciation is provided to write off the cost or valuation less the estimated residual value of tangible fixed assets by equal insialments over their estimated useful economic lives. over the following periods. Plant and machinery Fixtures. fittings and equipment Computer equipment 5 years 5 years 3 years The assets, residual values, llseful lives and depreciation rnethods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. {]) Intangible5 Intangible assets are stated at cost less accumulated amortisation. Ainortisation is calculated using the straight- line method to all(ate the depreciable ainount of the assets to their residual values over tlieir estimated useful lives. Intangible assets comprise software and are amortised between thre£ and five years. The carrying values of intangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the catiying value may not be recoverable. li) Investments The investinent in the subsidiary undertaking is shown at cost on the charity balance sheet. The charity also invests in a mixed motive investment via the subsidiary undertaking rneaning assets that both further the charity's objects and generate a financial return. {k} Tax The tax credit represents the sum of the tax currently Jyceivable. The tax cunyntly recoverable is based on relievable losses arising in the year as a result offiim tax relief legislation. Relievable losses differ from net losses as reported in the profit and loss account because they include an additional deduction relating 10 qualifying film development expenditure and exclude items of income or expense that are tsxable or deductible in other years, as well as items that are neper taxable or deductible. The company's tax position is calculated usit]g tax rates that have been enacted OT substantively enacted at the reporting date. As a registered charity income detived from wholly charitable activities is exernpt from co]poration tax. 17
On The Edge Conservation Notes to the Financial Statements For the period ended 31 December 2021 2. Expenditure on Charitable actiTrities Group: Grant funding ActiTrities undertaken Directly Total 31 Dec21 Support costs Total 31 Mgr 21 aCtItieS Governance Conservation and Science Marketing and Story1elling Impact Measureinent 554.060 159,662 329,750 13,309 51,339 762,278 1,363215 1,204,155 32,745 126,315 1,149,331 194212 171551 110220 2,111,486 1,535,368 329,750 50,719 195,649 2,021,829 Charity: Grant funding of aetivities Total 31 Dee21 Aetivities undertaken Direetly Support eosts Total 31 Mar 21 Governanee Conservation and Science MarketinsT and Storytellinb Impact Measuiernent 551,958 150.237 329,750 9,807 62,164 633.162 1,129,181 996.118 114,932 1,185.522 185.578 3,792 24,035 74.549 1,894.543 1.331,933 329,750 31.729 201.131 1.893,233 Auditors remuneratlon 31 December 31 Mareh 2021 2021 Group Charity Group (Tharity Audit of financial statements 19,200 10.250 70 19,200 12,500 14,838 12,500 Tax advisory s¢rviccs Other non-audit scrviccs Total 232 30,150 19,200 28,358 12,732 18
On The Edge Conservation Notes to the Financial Statements For the period ended 31 December 2021 Employees 31 December 31 March 2021 2021 Group Charity Group Charity Wagcs and salari¢s Redundancy Social sccurity Costs Pension contributions Medical Insurance 484,282 18.750 59,291 72.630 7,810 62.617 427,544 353,466 170,664 49,856 64.192 7.324 62.240 34,078 50,453 5,398 19,550 34,078 50,453 5,399 19,036 oiher HR costs Staff costs 705J80 611,156 462,946 279,630 Thc numbcr af pcrsons cmplayed by th¢ group during th¢ rKriad 18 11 (0312021.. 7.5). Two ¢mploy¢¢8 camcd bctw¢¢n £70,0(X) and £80,000 in th¢ p¢riod10312021.. 1). Th¢ kcy manag¢m¢nt p¢rsonn¢l is th¢ Chicf Stratcgy Offic¢r tog¢th¢r with th¢ Trnst¢¢s. Kcy managcmcnt pcrsonn¢l r¢c¢iv¢d bcncfits totalling £83,853 during thc 9-month riod. Thc Trustccs wcw not paid nor r¢ccivcd any othcr Ecncfits from thc charity or its subsidiary compani¢s in thc ycar {0312021.. £nil). Thcy wcrc not r¢iJnbursed for any ¢xp¢nscs during thc y¢ar (0312021.. £nil)- No charity trust¢¢ ¢¢iV¢d paym¢nt for profcssional or othcr s¢rvi¢¢s supplicd to th¢ charity (0312Q21.. £nill. Property, Plant & EquipmeTht Grvup Fixtures, fittings and equipment Fixtures, fittingFs Id equipment Cost At l April 2021 Additions 43,179 6,088 49.267 42,180 6.087 48,267 At 31 Deeember 2021 Depreei#tion At l April 2021 Charges for the period At 31 December 21121 10,581 10,321 20.902 9,610 10,292 19,902 Net book value At 31 mah2O21 At 31 December 2021 28,365 28J65 19
On The Edge Conservation Notes to the Financial Statements For the period ended 31 December 2021 Intongibles Group Cost At l April 2021 Additions 218,1(X) 84,150 At 31 Deeember 2021 302,250 AmortisationlImpairment At l April 2021 Amortisation for th¢ pcriod linpaimient foi the period At 31 Deeember 2021 12,430 26,189 263,631 302,250 Net book value At 31 March 2021 205 670 At 31 Deeember 2021 The intangible asset relates to two mobile gaming apps Kakapo Run and Save Purple Frog. Both games were launched on Google and Apple Store on the following dates.. Kakapo Run.. 30 October 2020,. and Saiwe Purple Frog.. November 2U21. In late 2021, a games strategy specialist was engaged to adi'ise on commercialising the games with in app purchases andlor advertising. Based on their advise, the trustees decided to impair the games because there are no current plans to onetize the games, The chaiity doe not hold any intangible assets. Financial Commitments On the 26 March 2021. On the Edge Con%ervation %igned a sen'ices agreement with cOnerVation Science Partners to develop an Al-based %entiment tracker capable of monitoring entijneI]t towaTd species, eco8y8tems, and the people that ecure them. This is a two-yeaT contTact with a valiie of USD 247,250. The project 18 ongoing and a minimal viable PToduct is due to be launched at the Biodiversity Conference {COP 151 in late 2022. Taxatlon The tax credit during the period relates to a creative industries film credit due to OTEP 2 Ltd. Investments Investments at fair value compromise". Shares Mlxed Motlve Investment Total Investments in subsidlary eompanles Cost or valuation At 31 March 2021 Additions Impairm¢nt 160,000 160,001 {160,(X)O} 1160,000) At 31 December 2021 20
On The Edge Conservation Notes to the Financial Statements For the period ended 31 December 2021 The mixed motive investment funded the dei'elopment of the initial mobile gaming app Kakapo Run. As detailed at Note 6. Kakapo Run has been fully impaired whilst fvrther work is conducted to commercialise the game. When impairing the game. the trustees also resolved to impair the Mixed motive investment. Subsidiary undertakings The following were subsidiary undertakings of the charity.. Name Company Registration No. Class of Shares Holding On The Edge Productions Ltd OTEP Ltd OTEP 2 Ltd 09660075 09714151 12736225 Ordinary IOOQ/o Wholly 0ed subsidiary of On The Edge Productions Ltd Wholly owied subsidiary of On The Edge Production5 Ltd All entities in the group are located at registered office 25 Ives StTeet, Chelsea SW3 2ND. The aggTegate of the share capital and reserves as at 31 December 2021 and of the profit or loss for the petiod then ended on that date for the subsidiary undertakings were as follows.. On The Edge Productlolls Ltd 419,849 {365,592) (89,480) {103.631) OTEP 2 Ltd 218,967 1227,953) (63,274) OTEP Ltd Incomc Cost of sal¢s Adjnit]ltrative expen%es Impaimient Tax refund Net profitl{loss) (2) 72,260 {138.854) (2} Total assets as at 31 Dec 21 Total liabilities as at 31 Dec 21 Net assets held as at 31 Dec 21 139,083 1443,614} {304,531} 143,923 1143.922) 185,742 {863,497) {677.755) Trade and other receivables 31 December 31 March 2021 2021 Group Charity Groiip Charity Other debtors 149,041 610 150,000 20,000 14,552 185,162 156,114 2,694 20,257 17,286 196,351 40,209 174,328 20,000 14,278 248,815 Amounts owcd by associat¢d und¢rtakings Deposits Prcpaym¢ntS 20,000 184,205 21
On The Edge Conservation Notes to the Financial Statements For the period ended 31 December 2021 io Trade and other payables 31 Deeember 31 March 21121 2021 Group Chanty Group Chariry A¢¢ruals Accounts payable Dircctors loan account 30,150 47,748 862,097 939.995 18,500 47.079 21,420 68,674 854,417 944.511 32,322 20,154 65,579 52,476 Operating leA5e commitments Land and Buildings 31 Derember 31 March 2021 2021 Group Chanty Group Charity OperatlnbT leases which expire.. Within one yr Within two to five years 26,666 26,666 40,000 16,667 56,667 40,000 16,667 56,667 26,666 26,666 Lease expenditUTe of £40,000 (0312021.. £40,000) is included in sUPPOrt costs in note 2. 12 Analysis of net assets between fuThds 31 Deeember 31 December 31 Mareh 2021 2021 2021 Group: Unr¢glri¢ied ld Total Tothl Fix¢d as5¢ts 28,365 2R,365 32,598 205,670 565,736 196,351 (944,511) 55,843 Intangible asset Cash Debtor 919,867 184,205 (939,995) 192,442 919,867 184,205 1939.995) 192,442 Oiher current liabilities Total Charity: Fix¢d aswts 28,365 28,365 32,570 160,001 555,841 248,815 (52.476) 944,751 Investment Cash tkbtors 918,492 185,162 (65,987} 1,066,033 918,492 185,162 165,987) 1,06fj033 Other current liabilities Total 22
On The Edge Conservation Notes to the Financial Statements For the period ended 31 December 2021 13 Related party transactions Trustee David Blood made donations to On the Edge Conservation totalling £1.740,68110312021.. £1,166,288). As noted above (note 41 none of the Trustees in On the Edge Conservation had expenses Jyimbursed in the peri(K1. At year-enl the charity does not have any amount owing to subsidiary companies {0312021.. £nil). The charity had intracompany transactions during the year with On the Edge Productions Ltd. At year enl On the Edge Productions Ltd owed the charity £150,00010312021 £171.634). This will be repaid once the film tax credit is reimbursed by HMRC. During the year a bad debt provisiL)n was made against the intercompany of £108,700. During the COUTse of the year Beth and David Bld, who are also t[st£eS of the charity, loaned £7,680 {0312021.. £20,417) to OTEP Ltd. OTEP Ltd owed £862, 097 (0312021.. £854,417) to the directOTS at year cl as reflected in note 10. On 28 March 2017, Friends of On the Edge Foundation was established as a not-for-profit entity incoTporated in Delaware USA. The Charity is connected to On the Edge Conservation by virtue of having representation on its Board of Directors. During the year, the following served as tnembers of the Board of Friends of On the Edge Foundatioii.. David Bloo(L Barry Zubrow and "Chard Sabo. 23