2022-12-31-accounts

On the Edge Conservation Group Reports and Financial Statements

For the year ended 31 December 2022

Charity registration number: 1163124 Company registration number: 09646831

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On The Edge Conservation

Contents

For the year ended 31 December 2022

Contents
	Page
Charity Reference and Administrative Details	2
Trustees’ Annual Report	3
Independent Auditor’s Report	6
Consolidated statement of financial activities	9
Charity only Statement of Financial Activities (Including Income and Expenditure Account)	10
Balance Sheets	11
Consolidated Cash Flow Statement	12
Notes to the Financial Statements	13

On The Edge Conservation

Details

For the year ended 31 December 2022

Charity registration number	1163124
Company registration number	09646831
Trustees	Beth Blood
	David Blood
	Alexander Marshall
	Lara Legassick
	Tamara Arnold (resigned 13 May 2022)
Registered office	25 Ives Street
	Chelsea, London
	SW3 2ND
Independent Auditor	Saffery Champness LLP
	71 Queen Victoria Street
	London
	EC4V 4BE
Solicitor	Bates Wells and Braithwaite London LLP
	10 Queen Street Place
	London
	EC4R 1BE
Bankers	Handlesbanken
	2ndFloor
	125 Kensington High Street
	London
	W8 5SF

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On The Edge Conservation

Trustees’ Annual Report

For the year ended 31 December 2022

The Trustees, who are also Directors of the company for the purposes of the Companies Act 2006, present their report and the audited financial statements of the group and charity for the year ended 31 December 2022.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s governing document, the Charities Act 2011, the Companies Act 2006 and 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.

Trustees of the charity

The directors of the charitable company are its Trustees for the purposes of charity law. The Board of Trustees, that meets four times a year, administers the Charity in accordance with the Articles of Association and the Charity Governance Code as applicable to the size of the charity.

Trustees serve for a term of three years and may be appointed for two further terms (9 years); or longer if agreed by the Board. Open positions are advertised on the charity’s website, inviting applications, with appointments being made after interview with the Chair (or delegated Trustee). Newly appointed Trustees receive a letter of appointment and an induction pack.

The Board has a wide skills base and cross-sector experience. Each Board member is required to declare any interests, directorships or positions which may conflict with any actual or proposed arrangements with the charity. Such interests are reviewed and authorised annually. Training needs are assessed and met 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 natural environment and the conservation and protection of endangered species or flora and fauna.

• To advance the education of the public in the conservation, projection and improvement of the physical and natural environment and the conservation and protection of endangered species or flora and fauna.

Goals

Our goal is to reconnect humanity with nature by presenting humanity with the awe, wonder and complexity of the natural world. To transform the way, we treat nature we need to see, acknowledge and respect the natural world.

On the Edge is committed to reconnecting humanity with the natural world. We do this by changing the narrative for nature using entertainment and popular culture storytelling. Only by experiencing the awe, wonder, complexity and interconnectedness of the natural world will we see, acknowledge and respect it. Achieving this in the first instance will make saving and restoring species and eco systems attainable.

Key achievements in the financial year:

• A new brand for On the Edge was launched together with a new website, capturing our unique approach and vision.

• Our new short form flagship campaign, Animals in Therapy (AiT) launched in September 2022 across all our digital channels (YouTube, Instagram and our website). Over 950,000 views were achieved during the campaign.

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On The Edge Conservation

Trustees’ Annual Report

For the year ended 31 December 2022

• Released a third cohort of Creators on the Edge where we focused on the connection between mental health and the environment and intelligence in other forms of life. We were thrilled with the results with one post receiving over 1,100 comments.

• On the Edge attended the Convention on Biological Diversity (CBD) COP15 in Montreal to make the case for EDGE species and Zones to be included in the biodiversity framework. We are happy to say that Goal A of the framework mentions the safeguarding of genetic diversity and the Sentiment Tracker was referenced in the final CBD Communication Strategy adopted.

Future Plans

On the Edge balances its activities between nature-promoting media and games, grants, and high-impact campaigns that tie together our media and conservation work. Broadly we are focused on two workstreams:

Storytelling

On the Edge is producing content for different platforms using a variety of storytelling techniques. Efforts are currently focused on:

• Production of short and long form content to shine a light on the awe and wonder of nature using mainstream methods.

• Growing and evolving our mobile gaming slate.

• Supporting social media content creators and partnerships to expand our reach

Natural History

We have a particular interest in Evolutionarily Distinct and Globally Endangered (EDGE) species. They represent the most unique and threatened lineages on the planet yet are often overlooked by conservationists. On the Edge provides financial support and guidance to local conservationists, organisations and communities. which includes building the capacity of in-country conservationists and promote community co-existence with wildlife and nature.

EDGE Zones is another area of particular interest. Campaign grants for this initiative are aimed at achieving conservation outcomes and raising awareness of EDGE zones as important biodiversity hotspots. These grants support a mixture of storytelling initiatives and local on the ground conservation efforts.

As our team continues to grow there was a need to increase collaboration between science and communications. On the Edge has restructured the science and conservation team to focus on Natural History. This will help drive forward our storytelling and regional campaigns.

We are a strategic single-issue pro-active funder, meaning that we seek out potential grantees with activities that align with one or more of our thematic aims. This is done through in-house expertise and institutional connections within the philanthropic and conservation sectors. We do not accept unsolicited requests for funding.

Public benefit statement

The Trustees 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.

Structure, governance and management

On The Edge Conservation was incorporated as a charitable company limited by guarantee on 18 June 2015 (Reg. No. 9646831) and registered as a charity on 13 August 2015 (Reg. No. 1163124). OTE Productions Limited (formally On The Edge Productions Limited) (Reg. No. 9660075) is a wholly owned subsidiary of On the Edge Conservation. This entity holds 100% of the rights to the animated TV series and any future ancillary initiatives related to the brand. OTEP Limited (Reg. No. 9714151) is a wholly owned subsidiary of OTE Productions Limited and is the production vehicle

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On The Edge Conservation

Trustees’ Annual Report

For the year ended 31 December 2022

for the first season of the animated TV show. OTEP 2 Limited (Reg. No. 12736225) is also a wholly owned subsidiary of OTE Productions Limited and is the production vehicle for the motion capture YouTube channel.

Day to day management of the activities is carried out by the Beth Blood and the support of the team.

Risk Review

The Trustees have assessed the major risks to which the charity is exposed, including those relating to financial, operational, compliance and governance issues. The Trustees review risks annually and are satisfied those systems are in place to mitigate exposure to those risks.

The most critical risk to the charity is the loss of funding from David Blood, which supports the Charity's objectives. If David Blood is unable or unwilling to provide funding, this will restrict the Foundation’s ability to grow further or mean that grants and research activities may need to be scaled back. However, the trustees consider this risk unlikely.

Financial review – Results for the year and reserves

The charity had donation income of £2,822,172 (2021: £2,175,825) from Trustee David Blood (including Gift Aid) and expenditure of £392,004 (2021: £329,750) in conservation grants and £2,319,163 (2021: £1,564,793) in storytelling, impact analysis, marketing, and operational expenses. The charity’s reserves were in surplus by £1,178,268 as at 31 December 2022 (2021: £1,066,033).

As outlined above, the charity owns 100% of OTE Productions Ltd, OTEP Ltd and OTEP 2 Ltd. These subsidiary companies are in start-up mode whilst they develop digital content using EDGE species as our ambassadors. In the future, alongside the social impact of these activities, it is intended that the subsidiaries will generate an ongoing revenue stream that can be passed to the charity to fund conservation activity.

For the year ended 31 December 2022, the group had a surplus of £205,560 (2021 surplus £192,442).

Fundraising

The Trustees take their responsibility under the Charities (Protection and Social Investment) Act 2016 seriously and have considered the implications on the charity’s activities. The charity currently does not actively fundraise and therefore the trustees do not consider it necessary at this point to have a formal fundraising policy in place. There have been no complaints with regard to fundraising in the year.

Reserves policy

The trustees aim to maintain free reserves at a level which equates to approximately one year of fixed charitable costs (e.g salaries, compliance and occupancy costs etc.). The trustees consider that this reserve level will provide sufficient funds to respond to applications for grants and ensure that support and governance costs are covered.

The trustees consider that this is sufficient given the philanthropic commitment of David Blood to provide annual funding to On the Edge Conservation. The Trustees are satisfied that this commitment will allow the charity and subsidiaries to develop as intended over the next year.

At the year end the charity held free reserves of £1,055,638 (2021 £1,037,667).

Statement of trustees’ responsibilities

The trustees (who are also directors of On The Edge Conservation for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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On The Edge Conservation

Trustees’ Annual Report

For the year ended 31 December 2022

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 expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP (FRS 102);

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial 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 responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

• there is no relevant audit information of which the charitable company’s auditor is unaware; and

• the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Preparation of the report

This report has been prepared taking advantage of the small companies’ exemption of section 415A of the Companies Act 2006. This report was approved and authorised for issue by the Trustees on 2023 and 20 June signed on their behalf by:

……………… Beth Blood Chair of Trustees

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On The Edge Conservation

Independent auditor’s report to the members

For the year ended 31 December 2022

Opinion

We have audited the financial statements of On The Edge Conservation (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2022 which comprise the consolidated statement of financial activities, charity statement of financial activities, balances sheets, consolidated cash flow statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the affairs of the group and the parent charitable company as at 31 December 2022 and of the parent charitable company and group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are 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 financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact.

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On The Edge Conservation

Independent auditor’s report to the members

For the year ended 31 December 2022

We have nothing to report in this regard.

Other matters prescribed by the Companies Act 2006

• In our opinion, based on the work undertaken in the course of the audit:

• the information given in the Trustees’ Annual Report which includes the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Trustees’ Annual Report which includes the Directors’ Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 require us to report to you if, in our opinion:

• adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charitable company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the trustees were not entitled to 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 Report and the Strategic Report.

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 5 and 6, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

Our objectives are to obtain reasonable assurance about whether the group and parent financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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On The Edge Conservation

Independent auditor’s report to the members

For the year ended 31 December 2022

Irregularities, including fraud, are instances 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 fraud.

The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent charitable company’s financial statements to 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 group and parent charitable company operate.

Laws and regulations of direct significance in the context of the group 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 considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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On The Edge Conservation

Independent auditor’s report to the members

For the year ended 31 December 2022

Use of our report

This report is made solely to the parent charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent charitable company and the parent charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Jamie Cassell (Senior Statutory Auditor) for and on behalf of Saffery Champness LLP

Date 3 July 2023

71 Queen Victoria Street London Chartered Accountants EC4V 4BE

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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On The Edge Conservation

Consolidated Statement of Financial Activities

For the year ended 31 December 2022

Note Income: Donations Other income Total income Charitable expenditure: 2 Conservation and Science Marketing and Storytelling Impact Measurement Total expenditure Net income/(expenditure) before tax Tax credit 6 Net income/(expenditure) Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward	31 December 31 December 31 December 2022 2022 2021 Unrestricted funds Total Total 2,822,172 2,822,172 2,175,825 1,282 1,282 -
	2,823,454 2,823,454 2,175,825 392,004 392,004 554,060 2,259,259 2,259,259 1,363,215 159,076 159,076 194,212
	2,810,339 2,810,339 2,111,486
	13,115 13,115 64,339 - - 72,260
	13,115 13,115 136,599
	13,115 13,115 136,599
	192,442 192,442 55,843
	205,557 205,557 192,442

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On The Edge Conservation

Statement of Financial Activities (Including Income and Expenditure Account)

For the year ended 31 December 2022

Note Income: Donations Other income Total income Charitable expenditure: 2 Conservation and Science Marketing and Storytelling Impact Measurement Total expenditure Loss on Investment 7 Net income/(expenditure) Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward	31 December 31 December 31 December 2022 2022 2021 Unrestricted funds Total Total 2,822,172 2,822,172 2,175,825 1,229 1,229 -
	2,823,401 2,823,401 2,175,825 427,004 427,004 551,958 2,125,087 2,125,087 1,129,181 159,076 159,076 213,404
	2,711,167 2,711,167 1,894,543 - - (160,000)
	112,235 112,235 121,282
	112,235 112,235 121,282 1,066,033 1,066,033 944,751
	1,178,268 1,178,268 1,066,033

All income and expenditure derive from continuing activities.

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On The Edge Conservation

Balance Sheets

As at 31 December 2022

Note Fixed assets Fixed Assets 5 Investments 7 Current assets Trade and other receivables 8 Cash at bank and in hand Current Liabilities Trade and other payables 9 Net current assets Net assets Charity Funds Unrestricted funds Total funds surplus	31 December 31 December 2022 2021 Group Charity Group Charity £ £ £ £ 122,629 122,629 28,365 28,365 - 1 - 1
	122,629 122,630 28,365 28,366 125,178 186,007 184,205 185,162 1,184,863 1,172,924 919,867 918,492
	1,310,042 1,358,931 1,104,072 1,103,654 (1,227,113) (303,293) (939,995) (65,987)
	82,928 1,055,638 164,077 1,037,667
	205,557 1,178,268 192,442 1,066,033
	205,557 1,178,268 192,442 1,066,033
	205,557 1,178,268 192,442 1,066,033

The financial statements have been prepared in accordance with the special provisions applicable to small companies within Part 15 of the Companies Act 2006.

The financial statements were approved and authorised for issue by the Trustees on 2023. 20 June

Signed on behalf of the board of trustees

…………. Beth Blood Trustee

The notes on pages 15 to 23 form part of these financial statements.

Company registration number: 09646831

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On The Edge Conservation

Consolidated Cash Flow Statement

As at 31 December 2022

		31 December	31 December
		2022	2021
Cash flows from operating activities:
Net income/(expenditure) for the reporting period		13,115	136,599
Depreciation and amortisation		26,768	36,509
Impairment of intangible asset		-	263,631
Loss on disposal of PPE		9,926	-
(Increase)/decrease in debtors		59,027	12,146
Increase/(decrease) in creditors		287,115	(4,516)
Net cash provided by/(used in) operating activities		395,953	444,369
Cash flow from investing activities:
Purchase of office equipment/computers		(130,958)	(6,088)
Purchase of intangible asset		-	(84,150)
		(130,958)	(90,238)
Change in cash and cash equivalents in the reporting period		264,995	354,131
Cash at bank and in hand at the beginning of the reporting period		919,867	565,736
Cash at bank and in hand at the end of the reporting	period	1,184,863	919,867
Analysis of changes in net debt:
	At Start of the period	Cash inflows	At end of the period
Cash	919,867	264,995	1,184,863
Total	919,867	264,995	1,184,863

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On The Edge Conservation

Notes to the Financial Statements

For the year ended 31 December 2022

1 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 2022 was £3 (2021: £3). The address of the registered office is given in the charity information on page 2 of these financial statements. The nature of the charity’s operations and principal activities are as set out on page 3.

In the prior period, the trustees elected to change the financial year-end to a calendar year (1 January to 31 December) to align with production planning. These financial statements are the first to be prepared as a 12month period. The comparative is a 9-month period to 31 December 2021.

The charity constitutes a public benefit entity as defined by FRS 102. The Trustees 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 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), the Charities Act 2011, the Companies 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 currency of the charity.

At the time of approving the financial statements, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. David and Beth Blood have made a philanthropic commitment to providing funding for On the Edge Conservation. This commitment has not changed in light of Covid-19 and the global economic uncertainty. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

The consolidated financial statements include the financial statements of all subsidiaries. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control over the operating and financial decisions is obtained and cease to be consolidated from the date on which control is transferred out of the Group. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity to obtain economic benefits from its activities. All intercompany balances and transactions have been eliminated in full.

The significant accounting policies applied in the preparation of these financial statements are set out below.

(b) Funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Currently the charity only has unrestricted funds.

(c) Income recognition

All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received.

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On The Edge Conservation

Notes to the Financial Statements

For the year ended 31 December 2022

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfilment 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 to the relevant expense as incurred.

(e) Critical Estimates and Judgements

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, 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 historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where these are affected.

The Trustees consider the most significant judgement in the accounts to be the estimated useful life of the fixed and intangible assets.

Following the launch of the two mobile games, the trustees were advised that revenue streams from the games would take more time and investment in the game play. Therefore, the trustees resolved to impair the intangible game assets at 31 December 2021.

(f) Employee benefits

• (i) Short term benefits

Short term benefits, including private medical insurance are recognised as an expense in the period in which the service is received.

(ii) Pension schemes

The contributions to defined contribution plans are recognised as an expense when they are due.

• (iii) Termination benefits

Termination benefits are payable when employment is terminated by charity, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when it is demonstrably committed to either (i) terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or (ii) providing termination benefits 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

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On The Edge Conservation

Notes to the Financial Statements

For the year ended 31 December 2022

effective interest method. The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

(h) Property, plant and equipment

Property, plant and equipment is stated at cost less accumulated depreciation and impairment losses. Depreciation is provided to write off the cost or valuation less the estimated residual value of tangible fixed assets by equal instalments over their estimated useful economic lives, over the following periods.

Plant and machinery 5 years Fixtures, fittings and equipment 5 years Computer equipment 3 years Leasehold improvements Over life of lease

The assets’ residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

(i) Investments

The investment 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 meaning assets that both further the charity's objects and generate a financial return. Following the impairment of the mobile games in 2022, the trustees also decided to impair the loan as likelihood of repayment was remote.

(j) Tax

The tax credit represents the sum of the tax currently receivable.

The tax currently recoverable is based on relievable losses arising in the year as a result of film tax relief legislation. Relievable losses differ from net losses as reported in the profit and loss account because they include an additional deduction relating to qualifying film development expenditure and exclude items of income or expense that are taxable or deductible in other years, as well as items that are never taxable or deductible. The company's tax position is calculated using tax rates that have been enacted or substantively enacted at the reporting date.

As a registered charity income derived from wholly charitable activities is exempt from corporation tax.

17

On The Edge Conservation

Notes to the Financial Statements

For the year ended 31 December 2022

2. Expenditure on Charitable activities

Group: Conservation and Science Marketing and Storytelling Impact Measurement Charity: Conservation and Science Marketing and Storytelling Impact Measurement	Total 31 Dec 22 Activities undertaken Directly Grant funding of activities Governance Support costs Total 31 Dec 21 392,004 - 392,004 - - 554,060 2,259,259 1,995,648 - 54,269 209,342 1,363,215 159,076 140,515 - 3,821 14,740 194,212
	2,810,339 2,136,163 392,004 58,091 224,082 2,111,486 Total 31 Dec 22 Activities undertaken Directly Grant funding of activities Governance Support costs Total 31 Dec 21 427,004 30,916 392,004 841 3,243 551,958 2,125,087 1,877,131 - 51,046 196,910 1,129,181 159,076 140,515 - 3,821 14,740 213,404
	2,711,167 2,048,562 392,004 55,708 214,893 1,894,543

3 Auditors remuneration

Audit of financial statements Tax advisory services Other non-audit services Total	31 December 31 December 2022 2021 Group Charity Group Charity 22,250 22,250 19,200 19,200 2,080 - 10,250 - 1,900 1,900 700 -
	26,230 24,150 30,150 19,200

18

On The Edge Conservation

Notes to the Financial Statements

For the year ended 31 December 2022

4 Employees

Wages and salaries Redundancy Social security costs Pension contributions Medical Insurance Other HR costs Staff costs	31 December 31 December 2022 2021 Group Charity Group Charity 727,688 727,688 484,282 427,544 24,394 24,394 18,750 - 89,704 89,704 59,291 49,856 109,284 109,284 72,630 64,192 13,016 13,016 7,810 7,324 37,384 36,884 62,617 62,240
	1,001,471 1,000,971 705,380 611,156

The number of persons employed by the group during the period is 12 (2021: 11). One employee earned between £60,000 and £ 69,999 (2021: 0). Two employees, earned between £70,000 and £79,999 in the period (2021: 2). One employee earned between £80,000 and £89,999 (2021: 0) and one employee earned between £100,000 and £109,999 (2021: 0). The key management personnel is the Chief Scientist, together with the Trustees. Key management personnel received benefits totalling £119,792 including employer pension contributions (2021: £83,853).

The Trustees were not paid nor received any other benefits from the charity or its subsidiary companies in the year (2021: £nil). They were not reimbursed for any expenses during the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).

5 Property, Plant & Equipment

Cost At 1 January 2022 Additions Disposals At 31 December 2022 Depreciation At 1 January 2022 Charges for the period Charges eliminated on disposal At 31 December 2022 Net book value At 31 December 2021 At 31 December 2022	Group Fixtures, fittings and equipment Leasehold improvements Total 49,267 - 49,267 28,344 102,613 130,958 (22,889) - (22,889) 54,722 102,613 157,336 20,902 - 20,902 16,407 10,866 27,273 (13,469) - (13,469)
	23,840 10,866 34,707 28,365 - 28,365
	30,882 91,747 122,629

19

On The Edge Conservation

Notes to the Financial Statements

For the year ended 31 December 2022

Cost At 1 January 2022 Additions Disposals At 31 December 2022 Depreciation At 1 January 2022 Charges for the period Charges eliminated on disposal At 31 December 2022 Net book value At 31 December 2021 At 31 December 2022	Charity Fixtures, fittings and equipment Leasehold improvements Total 48,267 - 48,267 28,344 102,613 130,958 (22,889) - (22,889) 53,722 102,613 156,336 19,902 - 19,902 16,407 10,866 27,273 (13,469) - (13,469)
	22,840 10,866 33,707 28,365 - 28,365
	30,882 91,747 122,629

Financial Commitments

On the 26 March 2021, On the Edge Conservation signed a services agreement with Conservation Science Partners to develop an AI-based sentiment tracker capable of monitoring sentiment toward species, ecosystems, and the people that secure them. This is a two-year contract with a value of USD 247,250 is due to complete on 30 June 2023. Technical manuals and manuscripts have been provided to On the Edge and the data and code now housed by On the Edge.

6 Taxation

The tax credit received in the prior period relates to a creative industries film tax credit due to OTEP 2 Ltd. No such tax relief was claimed during the current period.

7 Investments

Investments at fair value compromise:

Cost or valuation At 31 December 2021 Additions Provisions and impairments Impairment brought forward Impairment charge Impairment carried forward At 31 December 2022	Shares Mixed motive investment Total 1 160,000 160,001 - - -
	1 160,000 160,001 - 160,000 160,000 - - -
	- 160,000 160,000
	1 - 1

The mixed motive investment funded the development of the initial mobile gaming app Kakapo Run. As detailed at Note 6, Kakapo Run has been fully impaired whilst further work is conducted to commercialise the game. When impairing the game, the trustees also resolved to impair the mixed motive investment.

20

On The Edge Conservation

Notes to the Financial Statements

For the year ended 31 December 2022

Subsidiary undertakings

The following were subsidiary undertakings of the charity:

Name	Company	Class of Shares	Class of Shares	Holding
	Registration No.
OTE Productions Ltd (formally	09660075	Ordinary		100%
On The Edge Productions Ltd)
OTEP Ltd	09714151	Wholly owned subsidiary of OTE Productions Ltd
OTEP 2 Ltd	12736225	Wholly owned subsidiary of OTE Productions Ltd
ntities in the group are located at	registered office 25 Ives Street, Chelsea SW3 2ND.
aggregate of the share capital and	reserves as at 31 December 2022		and of the profit or loss for the period th
d on that date for the subsidiary undertakings were as follows:
	OTE Productions Ltd		OTEP 2 Ltd	OTEP Ltd
Income	105,000		-	18
Cost of sales	(119,100)		(35,216)	-
Administrative expenses	(39,162)		(3,380)	(7,313)
Net profit/(loss)	(53,262)		(38,596)	7,295
Total assets as at 31 Dec 22	104,404		187,741	7,296
Total liabilities as at 31 Dec 22	(462,160)		(904,092)	1
Net assets held as at 31 Dec 22	(357,757)		(716,351)	7,297

All entities in the group are located at registered office 25 Ives Street, Chelsea SW3 2ND.

The aggregate of the share capital and reserves as at 31 December 2022 and of the profit or loss for the period then ended on that date for the subsidiary undertakings were as follows:

8 Trade and other receivables

Trade debtors Other debtors Amounts owed by associated undertakings Deposits Prepayments	31 December 31 December 2022 2021 Group Charity Group Charity 3,151 3,151 - - 97,242 11,344 149,041 610 - 148,777 - 150,000 14,431 14,431 20,000 20,000 10,354 8,304 15,164 14,552
	125,178 186,007 184,205 185,162

21

On The Edge Conservation

Notes to the Financial Statements

For the year ended 31 December 2022

9 Trade and other payables

Trade and other payables
Accruals Accounts payable Directors loan account Other creditors	31 December 31 December 2022 2021 Group Charity Group Charity 30,168 127,280 30,150 18,500 196,238 173,405 47,748 47,487 898,097 - 862,097 - 2,610 2,608 - -
	1,227,113 303,293 939,995 65,987

10 Operating lease commitments

Operating lease commitments
	Land and Buildings
	31 December	31	December
	2022		2021
	Group Charity	Group		Charity
Operating leases which expire:
Within one year	57,723 57,723 26,666			26,666
Within two to five years	134,495 134,495		-	-
	192,218 192,218 26,666			26,666
e expenditure of £62,820 (2021: £40,000) is included in support costs in note 2.
Analysis of net assets between funds
	31 December 31	December	31	December
	2022	2022		2021
Group:	Unrestricted funds	Total		Total
Fixed assets	122,629	122,629		28,365
Cash	1,184,863	1,184,863		919,867
Debtors	125,178	125,178		184,205
Other current liabilities	(1,227,110)	(1,227,113)		(939,995)
Total	205,560	205,557		192,442
Charity:
Fixed assets	122,629	122,629		28,365
Investments	1	1		1
Cash	1,172,924	1,172,924		918,492
Debtors	186,007	186,007		185,162
Other current liabilities	(303,293)	(303,293)		(65,987)
Total	1,178,267	1,178,267		1,066,033

Lease expenditure of £62,820 (2021: £40,000) is included in support costs in note 2.

11 Analysis of net assets between funds

22

On The Edge Conservation

Notes to the Financial Statements

For the year ended 31 December 2022

12 Related party transactions

Trustee David Blood made donations to On the Edge Conservation totalling £2,257,500 (2021: £1,740,681). As noted above (note 4) none of the Trustees in On the Edge Conservation had expenses reimbursed in the period.

At year-end, the charity does not have any amount owing to subsidiary companies (2021: £nil). The charity had intracompany transactions during the year with OTE Production Ltd (formally On The Edge Productions Ltd). At year end, OTE Productions Ltd owed the charity £148,776 (2021: £150,000). This will be repaid once the film tax credit is reimbursed by HMRC. During the prior year a bad debt provision was made against the intercompany of £108,700.

During the course of the year Beth and David Blood, who are also trustees of the charity, loaned £36,000 (2021: £7,680) to OTEP Ltd. OTEP Ltd owed £898,097 (2021: £862,097) to the directors at year end as reflected in note 9.

Towards the end of the year, the Charity paid £22,419 (2021: £nil) to Jonathan Baillie, who is also a director of OTE Productions Ltd, in respect of consultancy services provided to the Charity.

The Charity made payments of £5,000 (2021: £nil) in respect of conference costs to Bright Tide Limited which shares a director with OTE Productions Ltd.

On 28 March 2017, Friends of On the Edge Foundation was established as a not-for-profit entity incorporated 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 members of the Board of Friends of On the Edge Foundation: David Blood, Barry Zubrow and Richard Sabo.

23