Company Number: SC666092

Analysis Date: 2025-07-29 12:25 UTC

1. Risk Rating: HIGH
   The company shows a deteriorating financial position with net liabilities increasing to £3,989 as of 31 January 2024, negative net current assets, and sustained losses. This indicates significant solvency and liquidity risks.

2. Key Concerns:

• Negative net assets and net current liabilities (£3,989) increasing from previous years, signaling worsening financial health.
• Operating losses over the latest 18-month period (£2,032 loss), with no reported revenue apart from grant income, suggesting limited operational profitability.
• Recent director resignations and multiple directors appointed at inception may reflect governance instability; also the company is very young (incorporated 2020) with limited trading history (commenced trading June 2023).

3. Positive Indicators:

• No overdue filings for accounts or confirmation statements, indicating compliance with statutory obligations.
• Government grant funding supporting development activities reduces immediate cash flow pressure.
• Active website and clear principal activities in computer hardware/software manufacturing and sales, indicating a defined business model.

4. Due Diligence Notes:

• Investigate the nature and duration of the government grant and whether this funding is ongoing or one-off.
• Review cash flow forecasts and funding plans to address the negative working capital and net liabilities.
• Assess management plans to achieve operational profitability and stabilize finances given current losses and limited operating history.
• Confirm if there are any contingent liabilities or off-balance sheet commitments not disclosed.
• Evaluate the impact of director resignations on strategic direction and governance.