ZESTIC AI LTD

Executive Summary

Zestic AI Ltd is a newly formed micro-entity with minimal net assets and a financial position that reflects limited operational scale and liquidity. While compliant with filing obligations and transparent in ownership, the company’s early stage and thin financial base present a high risk profile requiring close monitoring and further due diligence on business viability and funding sources.

ZESTIC AI LTD - Analysis Report

Company Number: 15152919

Analysis Date: 2025-07-29 20:33 UTC

1. Risk Rating: HIGH
   The company is very new (incorporated late 2023) and shows minimal net assets (£169), with current assets nearly equal to current liabilities, indicating extremely tight working capital. Limited financial history and micro-entity status offer minimal disclosure, increasing uncertainty around solvency and operational sustainability.

2. Key Concerns:

• Minimal Net Assets and Working Capital: Net assets of £169 suggest limited financial buffer to absorb shocks or meet obligations beyond immediate liabilities.
• Lack of Financial Depth and History: Only one financial period available, with no audit and prepared under micro-entity exemptions, limiting insight into financial health or cash flow.
• Dependence on a Small Number of Directors and Shareholders: Three directors and two entities controlling majority shares may concentrate operational and financial risk, especially without evidence of external funding or revenue.

3. Positive Indicators:

• Compliance with Filing Requirements: No overdue accounts or confirmation statements, demonstrating regulatory compliance to date.
• Clearly Defined Ownership and Control: PSC information is transparent, with two corporate shareholders each holding 25-50%, and rights to appoint/remove directors, indicating structured governance.
• Appropriate Company Category and Size: Micro-entity status reduces administrative burden and suits early-stage companies, allowing focus on initial growth phases.

4. Due Diligence Notes:

• Verify nature and source of current assets to assess real liquidity (e.g., cash vs. receivables).
• Investigate business model viability, customer pipeline, and revenue projections to understand operational sustainability.
• Review directors’ backgrounds and any related-party transactions given the close control by two entities.
• Confirm any external financing arrangements or shareholder commitments not reflected in accounts.
• Monitor future accounts for changes in financial position and cash flow trends.