REG - Inspirit Energy Hlds - Annual Financial Report <Origin Href="QuoteRef">INSP.L</Origin> - Part 3

Inspirit Energy HoldingsAnnouncement

28/12/2017 14:00

- Part 3: For the preceding part double click  ID:nRSb4917Ab 

                                                                                                                                                                
                                                                                                                                                                                                                                                                   0.0067                         10,783,364                           89,783,364                      
                                                                                                                                                                                                                                                                                                                                                                       
 
 
 21  OTHER RESERVES     
                        Share option reserve  Merger reserve  Reverse acquisition reserve  Total    
                        £'000                 £'000           £'000                        £'000    
     1 July 2015        125                   3,150           (7,361)                      (4,086)  
     Issue of warrants  81                    -               -                            81       
     30 June 2016       206                   3,150           (7,361)                      (4,005)  
     Issue of warrants  -                     -               -                            -        
     30 June 2017       206                   3,150           (7,361)                      (4,005)  
 
 
 22  TRADE AND OTHER PAYABLES                
                                      GROUP  COMPANY  
                                      2017   2016     2017   2016   
                                      £'000  £'000    £'000  £'000  
     Trade payables                   76     193      21     127    
     Other payables                   150    59       111    59     
     Amount due to related parties    -      -        -      -      
     Social security and other taxes  67     68       28     28     
     Accrued expenses                 73     61       73     60     
                                      366    381      233    274    
                                                                      
 
 
The Directors consider that the carrying amount of trade payables approximates
to their fair value. 
 
 23  BORROWINGS                                                
                                                        GROUP  COMPANY         
                                                        2017   2016     2017   2016     
                                                        £'000  £'000    £'000  £'000    
     Current                                                                            
     Drawdown facility (see Note 1 below)               199    121      199    121    
     Related party short term loans (see Note 2 below)  46     46       46     46     
                                                        245    167      245    167    
                                                                                          
 
 
Note 1  The Drawdown facility relates to the facility entered into during the
prior year with YA Global Master SPV Limited, showing the remaining balance
outstanding at the year end. The facility is unsecured and carries an implied
interest rate of 10 per cent per annum, repayable in 12 equal monthly
instalments. 
 
On 30 April 2015 the Company issued warrants to subscribe for 9,283,364 new
ordinary shares as part of the unsecured $3,000,000 Debt facility arrangement
with YA Global Master SPV Limited ("YA Global"). The issue of the warrants was
triggered following the drawdown of the initial Tranche 1, being $400,000,
under the terms of the agreement. The terms of the issue of warrants are
governed by the Debt Facility agreement, which specify that for every tranche
drawn down, the Company is required to issue 25% of the value of the drawdown
based on the interbank rate at the nearest possible date and using the average
Volume Weighted Average Price ("VWAP") of the Company for the five trading
days immediately prior the date of the agreement. Based on those terms, were
the Company to drawdown the remaining $2,600,000 they would be required to
issue further warrants to subscribe for an estimated total of 99,622,448 new
ordinary shares. This is based on the Exchange rate as at 30 June 2016 of $1 /
£0.751 and a VWAP of 0.49p. The Directors do not expect to use the remaining
facility in the foreseeable future 
 
 24  FINANCIAL INSTRUMENTS BY CATEGORY                                                                                                                                                                                                                                                                                                                                                                       
     The Group's financial instruments comprise borrowings, cash and cash equivalent, and various items such as trade receivables and trade payables. The main purpose of these financial instruments is to raise finance for the Group's operations.IAS 39 categories of financial instruments included in the Statement of Financial Position and the headings in which they are included are as follows:  
                                                                                                                                                                                                                                                                                                                                                                                                             2017   2016   
                                                                                                                                                                                                                                                                                                                                                                                                             £'000  £'000  
     FINANCIAL ASSETS - LOANS AND RECEIVABLES:                                                                                                                                                                                                                                                                                                                                                                             
     Trade and other receivables (excluding prepayments)                                                                                                                                                                                                                                                                                                                                                     175    347    
     Cash and bank balances                                                                                                                                                                                                                                                                                                                                                                                  30     258    
                                                                                                                                                                                                                                                                                                                                                                                                                           
     FINANCIAL LIABILITIES AT AMORTISED COST:                                                                                                                                                                                                                                                                                                                                                                              
     Trade and other payables (excluding accruals)                                                                                                                                                                                                                                                                                                                                                           160    320    
     Borrowings                                                                                                                                                                                                                                                                                                                                                                                              199    167    
     The table providing an analysis of the maturity of the non-derivative financial liabilities has been included in Note 3.                                                                                                                                                                                                                                                                                
 
 
 25  OPERATING LEASE COMMITMENTS                                                                                                                                                                                                                                                                        
     The Group leases an office under a non-cancellable operating lease agreement. The lease term is for one year and the lease agreement is renewable at the end of the lease period at market rate.The future aggregate minimum lease payments under non-cancellable operating lease are as follows:  
                                                                                                                                                                                                                                                                                                        2017   2016   
                                                                                                                                                                                                                                                                                                        £'000  £'000  
     GROUP:                                                                                                                                                                                                                                                                                                           
     No later than 1 year                                                                                                                                                                                                                                                                               26     26     
 
 
 26  ULTIMATE CONTROLLING PARTY                                                                                           
     At the date of signing this report the Directors do not consider there to be one single ultimate controlling party.  
 
 
 27  RELATED PARTY TRANSACTIONS                                                                                                                                                                                          
     During the year, NKJ Associates Ltd, a company in which N Jagatia is a Director, charged consultancy fees of £24,000 (2016: £27,000). The amount owed to NKJ Associates Ltd at year end is £2,000 (2016: £10,000).    
 
 
 28  EVENTS AFTER THE REPORTING DATE                                                                                                                                                                                                       
     On 15th August 2017, the Company announced that it raised £300,000  by issuing  208,333,334 new Ordinary Shares of 0.1p each  at a price of 0.12p per Ordinary Share together with a proposed Director's subscription of 41,666,666.  
 
 
This information is provided by RNS
The company news service from the London Stock Exchange