Audited Financial Results for the Year Ended 31 December 2023

Medcaw Investments Plc

(“Medcaw” or the “Company”)

Audited Financial Results for the Year Ended 31 December 2023

Medcaw is please to announce the publication of the audited results for the year ended 31 December 2023. A copy of the Company’s annual report will be made available on the Company’s website.

Chairman’s Statement

It is my pleasure to submit the Chairman’s Statement for the Company covering the twelve-month period to 31 December 2023.

During the period, the company commenced its search for a suitable acquisition target with the potential to return real value to shareholders. The directors reviewed several opportunities before agreeing to acquire 100% of Abyssinian Metals Limited ("AML"), a company developing the Kenticha Lithium Project located in Oromia State, Southern Ethiopia (“the Transaction”).

AML is a public limited company incorporated in Australia. It is a clean energy metals company with a focus on the development of the Kenticha Lithium Project in which it has a 51% legal and beneficial interest. Kenticha is a highly evolved, rare element, Lithium Caesium Tantalum (LCT) pegmatite project comparable to other major rare-element pegmatites such as Greenbushes, Tanco, Wodgina, Volta Grande and Altai No.3. Kenticha is a development asset which AML intends to develop with the production of spodumene concentrate planned in stages, with near-term production through a Dense Media Separation (DMS) modular plant.

Under AML’s stewardship the geological inventory at Kenticha has grown from circa 47mt of lithium oxide (Li2O) at a grade of around 0.8%; to 85.6mt at 0.98% Li2O plus a further 50Mt Exploration Target (at similar grade). By world standards, Kenticha is considered to be in the top 3-4 largest undeveloped hard rock lithium projects in the world, with an estimated economic life of in excess of 40 years (based on prevailing lithium-spodumene prices).

The Transaction has taken longer than was initially intended and this is due to the emergence of a dispute between AML and its 49% joint venture partner in the project - Oromia Mining Share Company (the parastatal mining company for Oromia State). In the last quarter of 2023, negotiations occurred between the joint venture partners, the Federal Government of Ethiopia and the Ethiopian Federal Ministry of Mines and there is now a clear process in motion to achieve a resolution of the dispute. AML, through its legal advisors (Clifford Chance), constructed and tabled a proposal which not only serves as a dispute resolution, moreover, establishes a platform for a revised joint venture agreement, and the issuance of the Mining Licence for the Kenticha Lithium Project (currently an Exploration License exists over the primary rock resource).

Over the last seven months, notwithstanding that there has been no “on ground” activity at Kenticha Mine, AML has used the time to enhance its technical studies for the development of the Kenticha Lithium Project. The team at AML are ready to re-commence operations at the Kenticha Mine shortly and the Transaction with Medcaw can then proceed.

The Transaction constitutes a reverse takeover under the Listing Rules. The Company requested its securities be suspended from trading with effect from 7 July 2023.

The Company and AML have engaged professional advisors and continue to work through diligence and documentation to complete the Transaction.

Additionally during the period, the Company raised gross proceeds of £400,000 via the issue of a total of 5,000,000 new Ordinary Shares in the Company. These shares rank pari passu with the existing Ordinary Shares in the Company. Alongside the equity raise, 300,000 broker warrants at the placing price of 8p per share and 1,600,000 warrants at 4p were also issued to a third-party consultant for transactional services.

I would like to thank our shareholders, my fellow directors and our colleagues at Orana Corporate for their continuing patience and ongoing support.

Marcus Yeoman

Non-Executive Chairman

CONTACT:

Medcaw Investments Plc

Charlie Wood via Orana Corporate LLP +44 (0) 203 475 6834

For more information please visit: https://medcaw-invest.com/

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2023


		Year ended 31 December 2023	Year ended 31 December 2022
	Note	£	£
Revenue		-	-
Administrative expenses	4	(562,260)	(194,006)
Impairment	11	(157,759)	-
Operating result		(720.019)	(194,006)
Finance income/(expense)	11	7,849	-
Loss before taxation		(712,170)	(194,006)
Income tax		-	-
Loss for the year and total comprehensive loss for the year		(712,170)	(194,006)

Basic and diluted loss per Ordinary Share (pence)	8	(3.64)	(1.90)

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

The accompanying notes to the annual report form part of these financial statements.

STATEMENT OF FINANCIAL POSITION

AS AT 31 December 2023


		As at 31 December 2023	As at 31 December 2022
	Note	£	£
ASSETS
Current assets
Cash and cash equivalents	9	371,484	643,872
Other current assets	10	140,323	187,160
Loan notes	11	-	-
Total assets		511,807	831,032


Liabilities
Current liabilities
Trade & other payables	12	242,751	240,709
Total liabilities		242,751	240,709

Net assets		269,056	590,323

EQUITY AND LIABILITIES
Equity attributable to owners
Ordinary share capital	13	221,320	171,320
Share premium	13	1,005,110	679,110
Share based payment reserve	14	14,903	-
Accumulated losses		(972,277)	(260,107)
Total equity and liabilities		269,056	590,323

The accompanying notes to the annual report form part of these financial statements.

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2023

	Ordinary share capital	Share premium	Share based payment reserve	Retained earnings	Total equity
	£	£	£	£	£
As at 31 December 2021	97,500	137,100	-	(66,101)	168,499

Comprehensive loss for the year
Loss for the year	-	-	-	(194,006)	(194,006)
Total comprehensive loss for the year	-	-	-	(194,006)	(194,006)

Transactions with owners
Ordinary shares issued during year	73,820	603,712	-	-	677,532
Share issue costs	-	(61,702)	-	-	(61,702)
Total transactions with owners	73,820	542,010	-	-	615,830
As at 31 December 2022	171,320	679,110	-	(260,107)	590,323

Comprehensive loss for the year
Loss for the year	-	-	-	(712,170)	(712,170)
Total comprehensive loss for the year	-	-	-	(712,170)	(712,170)

Transactions with owners
Warrants issued during year	-	-	14,903	-	14,903
Ordinary shares issued during year	50,000	350,000	-	-	400,000
Share issue costs	-	(24,000)	-	-	(24,000)
Total transactions with owners	50,000	326,000	14,903	-	390,903
As at 31 December 2023	221,320	1,005,110	14,903	(972,277)	(269,056)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023


	Notes	Year ended 31 December 2023	Year ended 31 December 2022
		£	£
Cash flows from operating activities
Loss before income tax		(712,170)	(194,006)
Adjustments for:
Impairment	11	157,759
Share based payments	14	14,903	9,422
Adjustments for changes in working capital:
Decrease in trade and other receivables		(140,323)	-
Decrease in trade and other payables		1,241	152,675
Interest income		(7,849)	-
Net cash used in operating activities		(686,439)	(31,909)

Cash flows from financing activities
Cash received from issue of Ordinary Shares 1		563,160	475,282
Net cash inflow from financing activities		563,160	475,282

Cash flows from investing activities
Loan notes	11	(149,109)	-
Net cash inflow from investing activities		(149,109)	-


Net (decrease) increase in cash and cash equivalents		(272,388)	443,373
Cash and cash equivalents at beginning of year		643,872	200,499
Cash and cash equivalents at end of year		371,484	643,872

1 In 2023 £187,160 of IPO funds were received by the Company

The accompanying notes on pages 23 to 35 form part of these financial statements

General Information

The Company was incorporated on 11 December 2020 as a public company in England and Wales with company number 13078596 under the Companies Act, 2006.

The address of its registered office is Eccleston Yards, 25 Eccleston Place London SW1W 9NF United Kingdom.

The principal activity of the Company is to pursue one or more acquisitions.

The Company listed on the London Stock Exchange (“LSE”) on 21ST December 2022.

Accounting policies

The principal accounting policies applied in preparation of these financial statements are set out below. These policies have been consistently applied unless otherwise stated.

2.1 Basis of preparation

The principal accounting policies applied in the preparation of the Financial Statements are set out below. These policies have been consistently applied to the year presented, unless otherwise stated.

The Company Financial Statements have been prepared in accordance with UK-adopted International Accounting Standards (‘IFRS’).

The Company Financial Statements are presented in £ unless otherwise stated.

2.2 Going concern

The Company’s business activities, together with facts likely to affect its future operations and financial and liquidity positions are set out in the Chairman’s Statement and the Strategic Report.

The Company’s financial statements have been prepared on the going concern basis, which contemplates that the Company will be able to realize its assets and discharge liabilities in the normal course of business. Despite this, there can be no assurance that the Company will either achieve or maintain profitability in the future and financial returns arising therefrom, may be adversely affected by factors outside the control of the Company.

The Company has had recurring losses in the current year and prior period, and its continuation as a going concern is dependent on the Company’s ability to successfully fund its operations by obtaining additional financing from equity injections or other funding.

This indicates that a material uncertainty exists that may cast significant doubt over the Company’s ability to continue as a going concern.

Whilst acknowledging this material uncertainty, the directors consider it appropriate to prepare the consolidated financial statements on a going concern basis for the following reasons:

The Company may reasonably expect to maintain continued support from shareholders and other financiers that have supported the Company’s previous capital raising to assist with meeting future funding needs; and
All outgoing and expenditure can be suspended until the sufficient completion of a capital raise.

The financial statements do not include the adjustments that would result if the Company were unable to continue as a going concern. The auditors have made reference to going concern by way of a material uncertainty within their report.

2.3 Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, and demand deposits with banks and other financial institutions.

2.4 Equity

Share capital is determined using the nominal value of shares that have been issued.

The Share premium account includes any premiums received on the initial issuing of the share capital. Any transaction costs associated with the issuing of shares are deducted from the Share premium account, net of any related income tax benefits.

Equity-settled share-based payments are credited to a share-based payment reserve as a component of equity until related options or warrants are exercised or lapse.

Retained losses includes all current and prior year results as disclosed in the income statement.

2.5 Foreign currency translation

The financial statements are presented in Sterling which is the Company’s functional and presentational currency.

Transactions in currencies other than the functional currency are recognised at the rates of exchange on the dates of the transactions. At each reporting date, monetary assets and liabilities are retranslated at the rates prevailing at the balance sheet date with differences recognised in the Statement of comprehensive income in the year in which they arise.

2.6 Financial instruments

IFRS 9 requires an entity to address the classification, measurement and recognition of financial assets and liabilities.

a) Classification

The Company classifies its financial assets in the following measurement categories:

those to be measured subsequently at fair value (either through OCI or through profit or loss);
those to be measured at amortised cost; and
those to be measured subsequently at fair value through profit or loss.

The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will be recorded either in profit or loss or in OCI. For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI).

b) Recognition

Purchases and sales of financial assets are recognised on trade date (that is, the date on which the Company commits to purchase or sell the asset). Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership.

c) Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset.

Transaction costs of financial assets carried at FVPL are expensed in profit or loss.

Debt instruments

Amortised cost: Assets that are held for collection of contractual cash flows, where those cash flows represent solely payments of principal and interest, are measured at amortised cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains/(losses) together with foreign exchange gains and losses. Impairment losses are presented as a separate line item in the statement of profit or loss.

d) Impairment

The Company assesses, on a forward-looking basis, the expected credit losses associated with any debt instruments carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

2.7 Equity instruments

Equity instruments issued by the Company are recorded at the proceeds received net of any direct issue costs.

2.8 Share based payments

The Group issues equity-settled share based payments to certain advisors.

Equity-settled Share based payments are measured at fair value at the date of grant.

Fair value is measured using an appropriate options pricing model. The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.

The fair value determined at the grant date of the equity-settled Share based payments is expensed on a straight-line basis over the vesting period, together with a corresponding increase in equity, based upon the Group’s estimate of the shares that will eventually vest.

Where the terms of an equity-settled transaction are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in value of the transaction as a result of the modification, as measured at the date of the modification.

Where an equity-settled transaction is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the transaction is recognised immediately. However, if a new transaction is substituted for the cancelled transaction and designated as a replacement transaction on the date that it is granted, the cancelled and new transactions are treated as if they were a modification of the original transaction, as described in the previous paragraph.

2.9 Taxation

Tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it excludes items of income and expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

2.10 Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimates are revised and in any future years affected.

Estimation of fair value of warrants issued in the year

The fair value of the warrants issued during the period have been calculated using a Black Scholes model which requires a number of assumptions and inputs, see Note 14 below.

2.11 New standards and interpretations not yet adopted

At the date of approval of these financial statements, the following standards and interpretations which have not been applied in these financial statements were in issue but not yet effective (and in some cases have not yet been adopted by the UK):

Standard

Effective date

Overview

Amendments to IAS 1

Classification of Liabilities as Current or Non-current

1 January 2024 (early adoption permitted)

The standard has been amended to clarify that the classification of liabilities as current or non-current should be based on rights that exist at the end of the reporting period.

In order to conclude a liability is non-current, the right to defer settlement of a liability for at least 12 months after the reporting date must exist as at the end of the reporting period.

The amendments also clarify that (for the purposes of classification as current or non-current), settlement is the transfer of cash, the entity’s own equity instruments (except as described below), other assets or services.

Amendments to IAS 21 – Lack of Exchangeability

1 January 2025 (early adoption permitted)

The amendments have been made to clarify:

- when a currency is exchangeable into another currency; and

- how a company estimates a spot rate when a currency lacks exchangeability.

Segmental analysis

The Company manages its operations in one segment, being seeking a suitable investment. The results of this segment are regularly reviewed by the board as a basis for the allocation of resources, in conjunction with individual investment appraisals, and to assess its performance.

Operating Loss

Operating loss for the company is stated after charging:

	Year ended 31 December 2023 £	Year ended 31 December 2022 £
Directors’ fees	108,000	2,454
Professional Fees (Legal & accounting)	364,949	86,845
Listing expenses	65,983	104,707
Other administrative expenses	28,184	-
Insurance	27,418	-
VAT provision written back	(32,274)	-
	562,260	194,006

Directors’ and Employees

The average number of persons employed by the Company (including executive directors) during the year year ended 31 December 2023 was:

No of employees	Year ended 31 December 2023	Year ended 31 December 2022

Management	3	3
	3	3

The aggregate payroll costs of these persons were as follows:

	£	£
Wages and salaries	108,000	2,454
	108,000	2,454

Year ended

31 December 2023

Year ended

31 December 2022

Fees to directors

108,000

2,454

108,000

2,454

Auditor’s Remuneration

	Year ending 31 December 2023 £	Year ending 31 December 2022 £
Fees payable to the Company’s auditor for the audit of the Company	35,000	35,000
Corporate Finance Fees	-	15,000
	35,000	50,000

Taxation

	As at 31 December 2023 £	As at 31 December 2022 £
A reconciliation of the tax charge / credit appearing in the income statement to the tax that would result from applying the standard rate of tax to the results for the year is:
Loss per accounts	(712,170)	(194,006)
Tax credit at the standard rate of corporation tax in the UK of 19%	(135,312)	(36,861)
Adjustment for items disallowable for tax	-	-
Tax losses for which no deferred tax is recognised	135,312	36,861
Tax expense recognised in accounts	-	-

The Company has total carried forward losses of £815,418 (2022: £ 260,107). The taxed value of the unrecognised deferred tax asset is £156,249 (2022: £49,420) and these losses do not expire. No deferred tax assets in respect of tax losses have been recognised in the accounts because there is currently insufficient evidence of the timing of suitable future taxable profits against which they can be recovered.

Earnings per share

The calculation of the basic and diluted earnings per share is calculated by dividing the profit or loss for the year by the weighted average number of ordinary shares in issue during the year.

	31 December 2023	31 December 2022
	£	£
Loss attributable to shareholders of Medcaw Investments Plc	(712,170	(194,006)
Weighted number of ordinary shares in issue	19,563,414	10,236,324
Basic & dilutive earnings per share from continuing operations - pence	(3.64	(1.90)

There is no difference between the diluted loss per share and the basic loss per share presented. Share options and warrants could potentially dilute basic earnings per share in the future but were not included in the calculation of diluted earnings per share as they are anti-dilutive for the year presented. See note 13 for further details.

Cash and cash equivalents

As at

31 December 2023

As at

31 December 2022

Cash at bank

371,484

643,872

371,484

643,872

Other current assets

	As at 31 December 2023 £	As at 31 December 2022 £
IPO Funds	-	187,160
Prepayments	36,100	-
VAT	104,223	-
	140,323	187,160

Loan note

	As at 31 December 2023 £	As at 31 December 2022 £
Loan note	149,109	-
Interest receivable	7,849	-
Provision for doubtful debts	(157,759)
	-	-

On 23rd June 2023 £149,109 was loaned to Abyssinian Metals Pty Ltd (AML) to fund working capital requirements. The loan accrues interest at 10% per annum payable in monthly instalments. The loan is repayable upon demand by the lender and can be converted into shares in AML subject to certain milestones. As at reporting date the loan has not been converted to equity. Due to inherent uncertainties around the collectability of the loan a provision has been raised and an impairment charge for the full amount recorded in the current year.

Trade and other payables

	As at 31 December 2023 £	As at 31 December 2022 £
Trade payables	97,297	203,256
Accruals	145,454	37,453
	242,751	240,709

Share capital and share premium

	Ordinary Shares	Share Capital		Share Premium	Total
		£		£	£
Issue of ordinary shares 1	1,011,275		10,113	30,338	40,451
IPO shares 2	6,370,820		63,707	573,374	637,081
Share issue costs	-		-	(61,702)	(61,702)
At 31 December 2022	17,132,095		171,320	679,110	850,430

Issue of ordinary shares 3	5,000,000		50,000	350,000	400,000
Share issue costs	-		-	(24,000)	(24,000)
At 31 December 2023	22,132,095		221,320	1,005,110	1,226,430

1 On 9th May 2022 and 10th November 2022 the company issued 1,011,275 Ordinary Shares at a subscription price of £0.04 in connection with the seed round of fundraising.

2 On admission to the Standard List of the LSE on 21st December 2022, 6,370,820 shares were issued at a placing price of £0.10

3 On 6th July 2023 the company issued 5,000,000 Ordinary shares at a subscription price of £0.01.

The share premium represents the difference between the nominal value of the shares issued and the actual amount subscribed less; the cost of issue of the shares, the value of the bonus share issue, or any bonus warrant issue.

The Company has only one class of share. All ordinary shares have equal voting rights and rank pari passu for the distribution of dividends and repayment of capital.

Share based payments reserve

	2023 £	2022 £
Opening balance	-	-
Broker warrants	41	-
Advisor warrants	14,862	-
Adviser warrants	-	-
At 31 December	14,903	-

The fair value of the services received in return for the warrants granted are measured by reference to the fair value of the warrants granted. The estimate of the fair value of the warrants granted is measured based on the Black-Scholes valuations model. Measurement inputs and assumptions are as follows:

	Broker	Advisor	Adviser
Issue date	06/07/2023	06/07/2023	01/9/2023
Time to expiry	2	2	3

Share price at date of issue of warrants	5p	5p	5p
Exercise price	8p	4p	32p
Expected volatility	18.4%	18.4%	18.4%
Risk free interest rate	4.3%	4.3%	4.3%

Warrants

	As at 31 December 2023
	Weighted average exercise price	Number of warrants
Brought forward at 1 January 2023	4p	4,000,000
Granted in year	26p	9,712,500
Vested in year	26p	9,712,500
Outstanding at 31 December 2023	20p	13,712,500
Exercisable at 31 December 2023	20p	13,712,500

The weighted average time to expiry of the warrants as at 31 December 2023 is 2.02 years (2022 : 1.98 years)

Financial Instruments and Risk Management

Principal financial instruments

The principal financial instruments used by the Company from which the financial risk arises are as follows:

	31 December 2023 £	31 December 2022 £
Financial Assets at amortised cost

Cash and cash equivalents	371,484	643,872
Loan note	-	-
	371,484	643,872

Financial Liabilities at amortised cost
Trade and other payables	97,297	240,709
Accruals	145,454	37,453
	242,751	278,162

The financial liabilities are payable within one year.

General objectives and policies

Per the Directors report the overall objective of the Board is to set policies that seek to reduce risk as far as practical without unduly affecting the Company’s competitiveness and flexibility. Further details regarding these policies are:

Policy on financial risk management

The Company’s principal financial instruments comprise cash and cash equivalents, loan receivables, trade and other payables. The Company’s accounting policies and methods adopted, including the criteria for recognition, the basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are set out in note 2 – “Accounting Policies”.

The Company does not use financial instruments for speculative purposes. The carrying value of all financial assets and liabilities approximates to their fair value.

Derivatives, financial instruments and risk management

The Company does not use derivative instruments or other financial instruments to manage its exposure to fluctuations in foreign currency exchange rates, interest rates and commodity prices.

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties. The Company’s exposure and the credit ratings of its counterparties are monitored by the Board of Directors to ensure that the aggregate value of transactions is spread amongst approved counterparties.

The Company applies IFRS 9 to measure expected credit losses for its loan receivables, these are regularly monitored and assessed. Loans aresubject to an expected credit loss provision when it is probable that amounts outstanding are not recoverable as set out in the accounting policy. Due to the inherent uncertainty in the recoverability of the loan to AML the Company has raised a provision against the full amount and an impairment charge has been recorded.

The Company’s principal financial assets are cash and cash equivalents and a loan note. Cash equivalents include amounts held on deposit with financial institutions. The loan note is an unsecured loan accruing interest at 10% per annum. The loan is repayable upon demand by the lender and can be converted into shares in AML subject to certain milestones not being met. As at reporting date the loan has not been converted to equity

The credit risk on liquid funds held in current accounts and available on demand is limited because the Company’s counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

No financial assets have indicators of impairment.

The Company’s maximum exposure to credit risk is limited to the carrying amount of financial assets recorded in the financial statements.

Liquidity risk

During the 31 December 2023, the Company was financed by cash raised through equity funding. Funds raised surplus to immediate requirements are held as cash deposits in Sterling.

In managing liquidity risk, the main objective of the Company is to ensure that it has the ability to pay all of its liabilities as they fall due. The Company monitors its levels of working capital to ensure that it can meet its liabilities as they fall due.

The table below shows the undiscounted cash flows on the Company’s financial liabilities as at 31 December 2023 on the basis of their earliest possible contractual maturity.

	Total £	Within 2 months £	Within 2-6 months £
At 31 December 2023
Trade payables	97,297	97,297	-
Accruals	145,454	145,454	-

	Total £	Within 2 months £	Within 2-6 months £
At 31 December 2022
Trade payables	203,256	203,256	-
Accruals	37,454	37,454	-

Capital management

The Company considers its capital to be equal to the sum of its total equity. The Company’s objective when managing its capital is to ensure it obtains sufficient funding for continuing as a going concern. The Company funds its capital requirements through the issue of new shares to investors.

Related Party Transactions

Provision of services

During the year £107,225 (2022: £12,670 was incurred for the provision of administrative and corporate accounting services from Orana Corporate LLP of which Charles Wood and Sarah Cope are both directors or past directors of the Company and Partners of Orana Corporate LLP. These transactions have been treated at arm’s length and processed at the fair market value of services provided. Other than these there were no other related party transactions.