FARSET LABS STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 28 FEBRUAR Y2024 Unrestricted Restricted fund5 fvnds 2024 2024 Total Unrestricted Restricted funds funds 2023 2023 Total 2024 2023 Notes Income and endowment5 from: Donations and legacie5 Charitable activities Other trading activities Other income 11,885 525 52,826 665 11,885 525 52,826 665 7,753 3,500 35,886 7,753 3,500 35,886 Total income 65,907 65,901 47,139 47,139 Expenditure on: Raising funds Charitable activities Other material expenditure 2,083 66,782 2,083 66,782 1,147 57,406 1,147 57,406 7,500 7,500 Total expenditure 68,865 7,500 76,365 58,553 58,553 Net expenditure 12,964) 17,5001 110,464) 111,414) 111,4141 Transfers between funds 7,500 7,500 Net movement in funds 10 4,536 (7,500) 12,9641 {11,4141 111,414) Reconciliation of funds". Fund balances at 1 March 2023 (18,0391 7,500 {10,5391 (6,6251 7,500 875 Fund balance5 at 28 February 2024 {13,5031 (13,503) (18,0391 7,500 110,5391 The statement of financial activities includes all gains and losse5 recognised in the year. All incorne and expenditure derive from continuing activities. 11 FARSET LABS BALANCE SHEET ASA T28 FEBRUARY2024 2024 2023 Notes Fixed assets Tangible assets 14 3,337 5,319 Current assets Stocks Debtors Cash at bank and in hand 15 16 1,265 4,141 13,835 2,441 15,323 19,241 17,764 Creditors: amounts falling due wlthin one year 18 (36,0811 133,6221 Net current Ilabilities 116,8401 115.8581 Totsl assets less current liabilities 1? 3,5031 {10,5391 The funds of the charity Restricted income funds Unrestricted funds 19 20 7,500 118,0391 113,5031 113,5031 110,5391 The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 28 February 2024. The directors acknowledge their responsibilities for complying with the requirement5 of the Comparies Act 2006 with respect to accounting records and the preparation of financial statements. The members have not required the company to obtain an audit of its financial statements for the sear in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved by the trustees on ..1.11￿￿J2o2&..... Mr Artemiy Knipe Trustee Company registration number N1611278 (Northern Ireland) 12- FARSET LABS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUAR Y 2024 Accounting policies Charity inforniation Farset Labs is a private company limited by guarantee incorporated in Northem Ireland. The registered office is Unit 1 Weavers Court, Linfield Road, Belfas¢ Co. Antrim, 8T12 5GH, Northern Ireland. 1.1 Accounting convention The accounts have been prepared in accordance with the charity's governing document, 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 IFRS 1021" las amended for accounting period5 commencing from 1 January 20191. The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial 5taternents are rounded to the nearest £. The accounts have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below. 1.2 Going concern As noted within our rese￿e5 policy, the charity has a deficit general reseTve5 Posltion of £13,503 at 28 February 2024. The Trustees are managing cash flow of the charity to ensure that it is able to pay liabilities as they fall due. During 2024/25, the charity saw an increase in the level of membership from 87 member5 to 105 by January 2025, this increase sees a return to pre-covid levels. It is the Trustees expectation that the charity will reach 130 members, an optimum level to support the reserves policy, by 28 Febnjary 2026. The Trustees are also seeking sponsorship and paid events to help boost incoming resources. At this date, the Trustees are satisfied that they have plans in place to manage cash flow for the foreseeable future, and a period of at lease 12 months from the date of approval of these financial statements. 1.3 Charitsble funds Unrestricted funds are available for use at the discretion of the tnjstees in furtherance of their charitable objectives. Restricted fund5 are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted fvnds are set out in the notes to the financial statements. Endowment funds are subjett to specific conditions by donors that the capital must be maintained by the charity. 1.4 Income Income is recogni5ed when the charity 15 legally entitled to it after any performance conditions have been met, the arnounts can be measured reliably, and it is probable that income will be received. 13 FARSET LABS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUAR Y2024 Accounting policies (Continued) Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donation5 received under Gift Aid or deeds of covenant is recognised at the time of the donation. Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the norrnal course of business, net of discounts. 1.5 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit tc a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support Costs which are not attributable to a single activity are apportioned between 1hose activities on a basis con515tent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the osset's use. Expenditure is recognised once there is a legal or construttive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings.. Expendlture on charitable activities includes the advancement of education and activities undertaken to further the purposes of the charity and their associated support costs,. Other expenditure represents those items not falling into any other heading. 1.6 Tangible fixed a55ets Tangible fixed assets are initially measured at cost and subsequently measured at C05t or valuation, net of depreciation and any impairment losse5. Depreciation is recognised so as to write off the cost or valuation of asset5 less their residual values over their useful lives on the following base5- Plant and equipment Fixtures and Fittings Computer Equipment 20% Straight Line 20% Straight Line 20% Strdight Line The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the staternent of financial activities. 14- FARSET LABS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUAR Y 2024 Accounting policles (Continued) 1.7 Impairment of fixed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication thot those assets have suffered an impairment loss. 11 any such indication exists. the recoverable amount of the asset 15 estimated in order to determine the extent of the impairment loss lif any). 1.8 Stocks Stocks are stated at thè lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overhead5 that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost. Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. 1.9 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.70 Financial instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Other Financial Instrumentslssues, of FRS 102 to all of its financial instrument5. Financial instruments are recagnised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Bas/c flnaneml assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amorr15ed c05t Using the effective interest method unle55 the arrangement constitutes a financing transaction. where the transaction 15 measured at the present value of the future receipts discounted at a market rate of nterest. Financial assets classified as receivable within one year are not amortlsed. 15- FARSET LABS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR EJVDED 28 FEBRUAR Y 2024 Accounting policies (Continued) Basic financial liabilities Basic financial liabilities, including creditors and bank loans are initially recogni5ed at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilitie5 classified as payable within one year are not amortlsed. Debt instwments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amort15ed cost using the effective interest method. Derecognition of financlal liabilities Financial liabilities are derecagnised when the charity's contractual obligations expire or are discharged or cancelled. Critical accounting estirnates and judgements In the application of the charity's accounting policies, the tnjstees are required to make JudgeM￿ts, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptians are based on historical experience and other factors that are considered to be relevant. Actual re5uIt5 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 the revision affects both current and future periods. Income from donations and legacies Unrestricted funds 2024 Unrestricted fund5 2023 Donations and gifts 11,885 7,753 16- FARSET LABS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUAR Y 2024 Charitsble activities Unrestricted Unrestricted Funds Funds 2024 2023 Perforrnance related grants 525 3,500 Performance related grants PTOgramme support Income 525 3,5C4) 525 3,500 Ineorne from other tradlng 0Ctlvltles Unrestrirted Unrestricted funds funds 2024 2023 Non-charitable trading activities Membership subscriptions and sponsorships Fundraising events 13,615 32,284 6,927 14,400 17,389 4,097 Other trading activities 52,826 35,886 Other income Unrestricted Unrestricted funds funds 2024 2023 Other income 665 17- FARSET LABS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUAR Y 2024 Ralslng fund5 Unrestricted Unrestricted funds fund5 2024 2023 Tradin costs Purchases 2,083 1,147 2,083 1,147 Expendlture on charitable actlvltles Unre5trcited Unrestrcited Funds Funds 2024 2023 Direct costs Progromme Expenses 2,598 1,457 Share of support and govemance costs (see note 9) Support Governance 62,365 1,819 54,347 1,602 66,782 57,406 Analysis by fund Unrestricted fvnds 66,782 57,406 18- FARSET LABS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR EIVDED 28 FEBRUAR Y 2024 Support costs allocated to activltjes 2024 2023 Depreciation Premises Expenses IT Software and Consumables Advertising & Marketing Bank Fee5 General Expenses Governance costs 1,996 56.103 3,298 143 668 157 1,819 1,996 50,591 775 81 424 1,602 64,184 55,949 Analysed between.. Unrestrcited Funds 64,184 55,949 2024 2023 Governance costs comprise: Accountancy 1,819 1,602 1,819 1,602 10 Net movement in funds 2024 2023 The net movement in fvnds is stated after charging/{creditingl'. DeP￿CIatIOn of owned tangible fixed assets 1,996 1,996 11 Trustees None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. 19- FARSET LABS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUAR Y 2024 12 Employees The average monthly number of employees during the year was-. 2024 Number 2023 Number Total 13 Taxation The charity is exempt from taxation on its activities because all its income is applied for charitable purposes. 14 Tanglble flxed assets Plant •nd Flxtures and equlpment Flttlng5 Computer Equlprneni Tot•1 Cost At 1 March 2023 9,746 1,351 2,356 13,453 At 28 February 2024 9,746 1,351 2,356 13,453 Depreciation and Impalrment At l March 2023 Depreciation charged in the year 5,281 1,606 1,242 53 1,597 337 8,120 1,996 At 28 February 2024 6,887 1,295 1,934 10,116 Carrying amount At 28 February 2024 2,859 56 422 3,337 At 28 February 2023 4,465 109 745 5,319 15 Stocks 2024 2023 Finished goods and goods for resale 1,265 -20- FARSET LABS NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY2024 16 Debtor5 2024 2023 Amounts falling due wlthin one year. Trade debtors 4,141 2,441 17 Loans and overdrafts 2024 2023 Directors, loans 3,015 Payable within one year 3,015 18 Credftors: amounts hlllng due wlthln ofte year 2024 2023 Notes Borrowings Deferred income Trade creditors Other creditors AccNals 3,015 4,320 27,479 6,000 21,895 4,460 1,267 1,267 36,081 33,622 21 FARSET LABS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUAR Y2024 19 Restrfcted fund5 The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used. At 1 March 2023 Resources At 28 February expended 2024 7,500 17,5001 During the year the trustees transferred funds of £7,500 that were spent in previous financial years in relation to University of Ulster- Future Screens Nl. Previous year: At 1 March 2022 Resources At 28 February expended 2023 University of Ulster - Future Screens Nl 7,500 7,500 20 Unrestrlrted funds The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been Set aside out of unrestricted funds by the tnjstees for specific purposes. At 1 March 2023 Incoming resources Resources expended Tran5fer5 At28 February 2024 General funds (18.0391 6S,901 168,8651 7,500 113,503) Prevlous year. At 1 March 2022 Incoming resources Resources expended Transfers At28 February 2023 General funds 16,625) 47,139 (58,5531 118,039) -22- FARSET LABS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR EJVDED 28 FEBRUAR Y 2024 21 Analys15 Of net a55ets between funds Unre5trlcted funds 2024 Restricted funds 2024 Total 2024 At 28 February 2024: Tangible assets Current assetsllliabilities) 3,337 116,8401 3,337 {16,8401 {13,503) (13,5031 Unr•strict•d funds 2023 Restrlctgd funds 2023 Total 2023 At 28 February 2023: Tangible assets Current assetsllliabilities) 5,319 (23,3581 5,319 115,8581 7,500 (18,0391 7.500 110,5391 22 Related party transactions There was one disclosable related party transaction during the year. A trustee provided a bridge loan of £3,000. This afflount is repayable on demand and will incur no interest.12023- None), -23-