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12. RESERVES

The carrying amounts of short-term borrowings approximate their fair values

The Company issued one Convertible loan note at par value of £500,000 on 21 October 2019 and one convertible loan note at par value of £500,000 on 20 January 2020. The bonds mature on 19 March 2022 at their nominal value of £500,000 plus an uplift on maturity of £350,000 or can be converted into shares at a discount of 41.17% on IPO price. The values of the liability and equity conversion components were determined at issuance of the loan notes.

The convertible loan note recognised in the Statement of Financial Position is calculated as follows:

16. RELATED PARTY DISCLOSURES

During the period under review, £40,000 (2019: £25,000) was paid in respect of consultancy fees to Dr E Albani, the director and majority shareholder of the company.

During the period under review, £25,000 (2019: £nil) was paid in respect of consultancy fees to Mr C Gilbert, a significant shareholder of the company.

As at 31 December 2020, £nil (2019: £51,349) was owed by Rockmasters Limited, a company that Mr C Gilbert exercised significant control over. During the year, Rockmasters Limited paid £159,185 (2019: £66,526) on behalf of the company.

17. EVENTS AFTER THE REPORTING PERIOD

The COVID-19 outbreak subsequent to the year end continues to have a significant effect on the global and UK economies and will have an impact on the company’s results for 2021. As a result of government restrictions implemented to mitigate the spread of COVID-19, the ability to engage with overseas investments will continue to prove difficult.

The company has taken all necessary actions to reduce costs and manage liquidity during this period but the full impact of the pandemic remains uncertain as the situation is still unfolding.

18. ULTIMATE CONTROLLING PARTY

The company is controlled by Dr E Albani who has the majority shareholding.  

The fair value of the liability component at 31 December 2020 was £1,241,159 and at 31 December 2019 was £485,987. The fair value is calculated using cash flows discounted at a rate based on the interest rate of a similar non- convertible loan note and are within level two of the fair value hierarchy.

15. RECONCILIATION OF LOSS BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS

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13. TRADE AND OTHER PAYABLES

14. BORROWINGS