GRID AI LTD

Executive Summary

GRID AI LTD, a micro-entity incorporated in late 2022, currently exhibits solvency concerns due to negative net assets driven by long-term liabilities exceeding total assets. The company has minimal operational activity with no employees and limited assets, indicating early-stage development with associated financial risks. While compliance and governance appear satisfactory, further investigation into liabilities and operational plans is necessary to assess financial stability and business sustainability.

GRID AI LTD - Analysis Report

Company Number: 14518312

Analysis Date: 2025-07-20 17:19 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net assets (£-1,363) when accounting for liabilities due after more than one year (£2,748). This indicates solvency concerns as liabilities exceed assets. The absence of current liabilities on the balance sheet conflicts with the presence of long-term creditors, suggesting potential classification or reporting issues. Additionally, the company is newly incorporated (Dec 2022) with no employees and minimal fixed and current assets, indicating early-stage operational status with limited financial resources.

2. Key Concerns:

• Solvency Risk: Negative net assets due to long-term creditors exceeding total assets raise concerns about the company’s ability to meet obligations.
• Liquidity Constraints: Current assets (£403) are low and insufficient to cover long-term liabilities, and no current liabilities are reported, which may mask short-term cash flow issues.
• Operational Stability: No employees and minimal assets suggest the company is not yet operational or generating revenue, increasing risk of business sustainability without additional funding.

3. Positive Indicators:

• Timely Filings: Accounts and confirmation statements are up to date with no overdue filings, indicating compliance with statutory requirements.
• Clear Governance: Directors and secretary appointments are properly recorded with no disqualifications or governance red flags.
• Ownership Transparency: PSC information is complete, showing clear control by two individuals with significant shareholdings and voting rights.

4. Due Diligence Notes:

• Investigate the nature and terms of the £2,748 long-term liabilities to assess repayment schedules, security, and risk of default.
• Review cash flow forecasts and funding plans to determine how the company intends to address negative net assets and finance operations.
• Confirm the business model and operational status since no employees are recorded and assets are minimal, to assess viability.
• Clarify the classification of creditors and reconcile apparent inconsistencies in the balance sheet presentation.