LESSON LAB AI LIMITED

Executive Summary

Lesson Lab AI Limited is a recently incorporated micro-entity with a healthy net asset base and no regulatory compliance issues to date. The company’s financial stability is supported by strong working capital, though reliance on director loans and the absence of operational history warrant cautious monitoring. Overall, the risk profile is low but further diligence on business sustainability and governance is recommended.

LESSON LAB AI LIMITED - Analysis Report

Company Number: 15349219

Analysis Date: 2025-07-29 18:15 UTC

1. Risk Rating: LOW
   Lesson Lab AI Limited demonstrates a solid initial financial position with positive net assets and no overdue filings, indicating low immediate solvency or compliance risks. The company is newly incorporated with a micro-entity status, showing minimal complexity and limited liabilities.

2. Key Concerns:

• Reliance on director loans: The company has significant director advances (£23,193 outstanding, repaid within 9 months post year-end), which may indicate dependence on internal financing rather than external funding or operational cash flow.
• Limited operational history: Incorporated in December 2023, the company has less than two years of activity, thus limited financial and operational track record to assess sustainability.
• Single director and shareholder: The control concentration with one individual owning 75-100% shares and voting rights poses governance risk, particularly if no independent oversight exists.

3. Positive Indicators:

• Strong current asset position relative to liabilities: Current assets of £28,047 versus current liabilities of £5,342 provide comfortable working capital (£22,705 net current assets).
• No overdue filings: Both accounts and confirmation statements are filed timely, reflecting good regulatory compliance.
• Micro-entity status: Simplified reporting requirements reduce administrative burden and costs, appropriate for the company size and stage.

4. Due Diligence Notes:

• Confirm the nature and sustainability of cash inflows supporting current assets and repayment of director loans.
• Review business model and revenue generation plans to assess operational viability beyond initial setup.
• Assess director’s background and any potential conflicts of interest given sole control and financial support.
• Monitor future filings for consistency in financial performance and compliance.