SECOND SIGHT OPTICAL LIMITED

Executive Summary

Second Sight Optical Limited is a micro start-up with limited financial history and a weak balance sheet characterized by negative working capital and minimal net assets. The company’s current financial position does not support approval for credit facilities due to insufficient demonstrated capacity to meet liabilities. Close monitoring of liquidity improvement and operational cash flow generation is essential before reconsidering credit exposure.

SECOND SIGHT OPTICAL LIMITED - Analysis Report

Company Number: 14527763

Analysis Date: 2025-07-29 12:50 UTC

1. Credit Opinion: DECLINE
   Second Sight Optical Limited is a very recently incorporated micro entity, with its first financial year ending 31 December 2023. The company shows a weak financial position with net current liabilities of £1,960 and minimal net assets of £523. The negative working capital and very limited equity base indicate insufficient buffer to meet short-term obligations. Given the absence of historical trading data, profitability track record, and the very modest asset base, the company currently lacks demonstrated capacity to service any debt or credit facility. The directors are also the sole significant controllers, with no evidence of external financial backing or established management depth.

2. Financial Strength
   The balance sheet reveals fixed tangible assets of £2,483 (computer equipment) net of depreciation, offset by current liabilities of £1,960 resulting in net current liabilities. Shareholders' funds stand at only £523, comprised of £100 share capital and £423 retained earnings, indicating minimal capitalization. The company’s total assets barely exceed liabilities, which suggests fragile financial strength and limited ability to absorb losses or fund growth.

3. Cash Flow Assessment
   There is no explicit cash or cash equivalents line item reported, implying very limited liquidity. Negative net current assets indicate a working capital deficiency that may constrain operational flexibility and delay supplier payments. The company's small scale (2 employees) and recent start-up status likely mean cash flows are still developing, and without external financing or a strong cash reserve, liquidity risk is elevated.

4. Monitoring Points

• Improvement in net current assets and working capital position
• Generation of positive operating cash flow and establishment of consistent revenues
• Changes in capital structure, particularly any capital injections or external financing
• Timely payment of creditors and avoidance of overdue liabilities
• Continued compliance with filing deadlines and absence of director or company conduct issues
• Development of management controls and financial reporting transparency