Registerednumber:10197256(England&Wales)

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

ICONICLABSPLC

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AUDITEDANNUALREPORT

&

ACCOUNTS

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YEARENDED30JUNE2022

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ICONICLABSPLC

CONTENTS

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Pages

CompanyInformation 1

 

ChiefExecutiveandChairman’sReport 2

 

StrategicReport 7

 

CorporateGovernanceReport 12

 

RemunerationCommitteeReport 18

 

AuditCommitteeReport 20

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Directors’Report 21

 

IndependentAuditor’sReport 23

 

ConsolidatedStatementofComprehensiveIncome 29

 

ConsolidatedStatementofFinancial

Position 30

 

ConsolidatedStatementofChangesinEquity 31

 

ConsolidatedStatementofCashFlows 32

 

CompanyStatementofFinancialPosition 33

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CompanyStatementofChangesinEquity 34

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NotestotheConsolidatedFinancialStatements 35

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ICONICLABSPLC

COMPANYINFORMATION

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Page1

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Directors



DavidStybr

BradleyTaylor

WilhelmusVanDerMeer

MarijaHrebac

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Companysecretary



AMBASecretariesLimited

400ThamesValleyParkDrive

Reading,Berkshire

RG61PT

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Companynumber 10197256

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Registeredoffice

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3FieldCourt

London

WC1R5EF

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Auditor

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NordensAuditLimited

TheRetreat

406RodingLaneSouth

WoodfordGreen,Essex

IG88EY

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Solicitor

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RWKGoodman

69CarterLane

London

EC4V5EQ

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Brokers



NovumSecuritiesLimited

Floor,LansdowneHouse

57BerkeleySquare

London

W1J6ER

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Registrar



SLCRegistrarsLimited

ElderHouse

StGeorgesBusinessPark

BrooklandsRoad

Weybridge

Surrey

KT130TS

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ICONICLABSPLC

CHIEFEXECUTIVEANDCHAIRMAN’SREPORT

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Page2

DearShareholders,

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Iampleasedtopresenttheauditedaccountsforthetwelvemonthsended30June2022forIconicLabsPLCand

itssubsidiaries(together,“Iconic“orthe“Company”).



Whiletheseaccountscoverthetwelve‐monthperiodended30June2022,giventheadministrationthatbegan

on

4 June 2021 and suspension of trading, our focus has, of necessity, been on restructuring the Company,

settling various legal disputes, and exiting administration rather than on the accounting, operational, and

strategictasksthatwewouldhaveundertakeninnormalcircumstances.Assuch,itisonlynow,inthefourth

quarter

of2022thatwehavebeenabletopreparetheseaccounts.

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TheCompanyVoluntaryArrangement(“CVA”)hasbeenapprovedbythecreditors,andanyotherlegaldisputes

relatingtothisperiodhavebeensettled,thechallengeperiodfortheCVAhasexpiredwithoutanyobjections,

andtheadministrationhas

endedsuchthatcontrolofIconicisonceagaininthehandsoftheDirectors.

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Withthissuccessfulrestructuring behindus, ourgoalnowistoget thesuspensionofIconic’ssharesliftedso

that trading can resume, financing can continue, and we can implement our strategic objectives for the

Company.



Therefore,in thisreport, wewillnot onlybe providingtheAuditedAnnualReport&Accountsfor thetwelve

monthsended30June2022,butwewillalsobeprovidinganupdateonwhereIconicstandsasofthefourth

quarter of 2022 in the interest of full transparency

and providing the market with the most up to date

informationontheCompany.

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DMINISTRATION

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Detailssurrounding theappointmentofjoint administratorson4 June2021andsuspensionofthetradingof

Iconic’sshareson7June2021canbefoundintheAuditedAnnualReportandAccountsfortheyearended30

June2021thathasbeenpublishedatapproximatelythesametimeasthis

reportfortheyearended30June

2022.

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VENTSFROM1JULY2021THROUGH30JUNE2022:

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On26July2021,IconicsubmittedaStatementofAffairstotheHighCourtofJustice,Business&PropertyCourts

settingforthasummaryoftheCompany’sassets,liabilities,creditors,andshareholdersasof4June2021when

the administration began. On the same date, the Joint Administrators submitted to

the creditors Proposals

RelatingtoIconic,wherein,amongotheritems,theyproposedthatifadequatefundingcouldbefound,aCVA

proposalcouldbesubmittedtothecreditorsfortheirconsideration.



Followingseveraladjournments,aShareholders’GeneralMeetingwasultimatelyheldon8December2021for

shareholderstovoteon

themeetingagendathatwasconvenedon20May2021.Allresolutionswerepassed

andinvolvedtheabilityofIconictoallotsharesandfinancetheCompanyassetforthbelow:

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 Resolution1: Authoritytoallotrelevantsecuritiesinrespectofthe2019IssuanceAgreementand

theAmended2020IssuanceAgreement.ThisResolutionauthorisedtheDirectorstoconvertthenotes

and/or warrants issued under the 2019 Issuance Agreement and the Amended 2020 Issuance

Agreement and issue further notes and/or warrants under such agreements, including in respect of

subsequentdrawdownsundertheAmended2020 IssuanceAgreement.Thisauthority

isforrelevant

securities up to an aggregate nominal amount of £692,246, is in addition to any existing other

authoritiestoallotrelevantsecuritiesandexpireson14June2026.

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 Resolution2: AuthoritytoallotrelevantsecuritiesinrespectofanyFlexibleFacility.ThisResolution

authorised the Directors to issue convertible securities (which grant rights to subscribe for ordinary

shares) and ordinary shares on conversion of such convertible securities in connection with any

“Flexible Facility” (as described in the Resolution). This authority is for relevant securities up to an

ICONICLABSPLC

CHIEFEXECUTIVEANDCHAIRMAN’SREPORT(Continued)

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Page3

aggregatenominalamountof£807,754,isinadditiontoanyexistingotherauthoritiestoallotrelevant

securitiesandexpireson14June2026.



 Resolution3: Disapplicationofpre‐emptionrightsinrespectofthe2019IssuanceAgreementand

theAmended2020 Issuance Agreement.This Resolution was subjectto the passing ofResolution1,

whichpassed.Inturn,thisthirdResolutionauthorisedtheCompanytodisapplythepre‐emptionrights

conferred by the Companies Act 2006 in connection with the allotment authority conferred by

Resolution1 inrespectofthe

2019IssuanceAgreementandtheAmended2020IssuanceAgreement.

This authority applies to the relevant securities which were the subject of the allotment authority

conferredbyResolution1,isinadditiontoanyexistingpowersconferredontheCompanyandexpires

on14June2026.



 Resolution4: Disapplicationof

pre‐emptionrightsinrespectofanyFlexibleFacility.ThisResolution

wassubjecttothepassingofResolution2,whichpassed.Inturn,thisfourthResolutionauthorisedthe

Companytodisapplythepre‐emptionrightsconferredbytheCompaniesAct2006inconnectionwith

the allotment authority conferred by Resolution 2 in respect of any Flexible Facility. This authority

applies to the

 relevant securities which are the subject of the allotment authority conferred by

Resolution2,isinadditiontoanyexistingpowersconferredontheCompanyandexpireson14June

2026.

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 Resolution5: Disapplicationofpre‐emptionrightsinrespectoftheallotmentauthoritiesfromthe

Company’s Annual General Meeting (“AGM”). At the Company’s AGM on 31 December 2020, the

shareholderspassedaresolutionthatauthorisedtheDirectorstoallotsharesintheCompany(andto

grantrightstosubscribefor,ortoconvertanysecurityinto,sharesintheCompany)uptoanaggregate

nominal

amountof£124,684.16aswellasuptoafurtheraggregatenominalamountof£124,684.16

in connection with a rights issue. This fifth Resolution authorised the Company to disapply the pre‐

emption rights conferred by the Companies Act 2006 in connection with the allotment authorities

conferredontheCompanyat

thelastAGMdescribedabove.Thisauthorityisinadditiontoanyexisting

powersconferredontheCompanyandexpiresattheconclusionoftheCompany’snextAGM.



VENTSPOSTCLOSINGOFTHE2022ACCOUNTS:



Whiletheadministrationwasstillineffectasof30June2022,withtheforegoingresolutionspassed,weturned

our attention to (i) negotiating settlements to all outstanding disputes; (ii) finalizing a CVA with the Joint

Administrators and the critical, preferential, secured, and unsecured creditors; and (iii) agreeing to financing

terms with EHGOSF to support the Company upon exiting from administration. Given the numerous parties

involved and their competing interests, complexity of the various legal and financial issues confronting the

parties,andvolumeofrelatedlegaldocumentationtobeagreedupon,thisprocesstookuntilAugust2022.

At that time, settlement

 agreements resolving all disputes were finalized, and notices were issued for a

Creditors’Meetingtobeheldon22September2022toapprovetheCVAandaShareholders’GeneralMeeting

to also be held on 22 September 2022 after the Creditors’ Meeting. As part of the settlement agreements,

EHGOSFagreed

tocancelitsoutstandingconvertibleloannotesandwarrantsinexchangefornewconvertible

loannotesof £750,000,and in addition,£750,000 in newconvertible loannotes were to beissuedto Linton

Capital,whichhad  beenassignedArch’sCapital’spositions.Thesenew convertibleloannotes wereissued to

EHGOSFand

LintonCapital,respectively,on19December2022,buttodatehavenotbeenconvertedintonew

sharesinIconic.



At the Creditors’ Meeting on 22 September 2022, the CVA was approved. In summary, a payment plan was

approvedoveraperiodofninemonthsforthecriticalandpreferentialcreditors

aswellasallcostsandexpenses

associatedwiththeadministration.Inaddition, unsecured creditorsagreedto be repaid inIconic shares at a

rateof£0.25per£1.00ofunsecuredclaimsagainsttheCompany,resultinginareductionofmorethan£800,000

ofliabilitiesagainstIconic.ThesenewIconic

shareswillbeissuedtotheunsecuredcreditorsonceallpayments

have been made to the critical and preferential creditors, and all costs and  expense associated  with the

ICONICLABSPLC

CHIEFEXECUTIVEANDCHAIRMAN’SREPORT(Continued)

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Page4

administrationhavebeenpaidinfull.SubjecttoIconic’stradingsuspensionbeinglifted,andfinancingcontinuing

underthenew£3mfinancingfacilitywithEHGOSF, setforthindetailbelow,Iconicanticipatesthesenewshares

tobeissuedtotheunsecuredcreditorsinMayof2023.Atotalof1,674,130,609newshares willbeissuedtothe

unsecuredcreditorsatthattime.



AttheShareholders’GeneralMeetingalsoheldon22September2022,allresolutionswerepassedassetforth

below:



 Resolution1: The

 CVA that had been approved earlier in the day by the creditors was then

approvedattheGeneralMeetingbytheshareholders.



 Resolution2: AuthoritytoallotrelevantsecuritiestothecreditorsoftheCompanyinrespectofthe

CVA. The shareholders granted authority to the Company under the Companies Act 2006 for the

Companytoissue1,674,130,609ordinarysharestotherelevantcreditorsinaccordancewiththeCVA.

Thisauthorityisforrelevantsecuritiesuptoanaggreg atenominalamountof£16,741.31,isinaddition

toany existingother

authoritiesto allotrelevantsecurities andexpires5yearsfromthedateofthis

Resolution.



 Resolution3: AuthoritytoallotsecuritiesgenerallyforpurposetheDirectorsmaydeemnecessary

or expedient in promoting the success of the Company. The shareholders granted authority to the

Company to issue ordinary shares for such purposes as deemed fit to promote the success of  the

Company,andforthosegeneralcommercialpurposesthatareinthebestinterestoftheCompanyand

itsshareholders.

TheCompanyisauthorisedtoissueordinarysharesupto14,962,099,216of£0.00001

per share in the capital of the Company. An aggregate nominal amount of £149,620.99 represents

approximatelyfortypercent(40%)oftheissuedordinarysharecapitaloftheCompanyasof30August

2022.Thisauthorityis

forrelevantsecuritiesuptoanaggregatenominalamountof£149,620.99,isin

additiontoanyexistingotherauthoritiestoallotrelevantsecuritiesandexpires5yearsfromthedate

ofthisResolution.



 Resolution4: Disapplicationofpre‐emptionrightsinrespectoftheordinarysharestobeissued

in

accordancewiththeCVA.ThisResolutionwassubjecttothepassingofResolution2,whichpassed.In

turn,thisfourthResolutionauthorisedtheCompanytodisapplythepre‐emptionrightsconferredby

theCompaniesAct2006inconnectionwiththeissueof1,674,130,609ordinarysharestothecreditors

oftheCompany

pursuanttotheCVAandappliestotheallotmentauthorityconferredbyResolution2

above. This authority is in addition to any existing powers conferred on the Company and expires 5

yearsfromthedateofthisResolution.



 Resolution5: Disapplicationofpre‐emptionrightsinrespectofthe

generalauthoritytoissueupto

14,962,099,216ofordinaryshares.ThisResolution wassubjecttothepassingofResolution3,which

passed. In turn, this fifth Resolution authorised the Company to disapply the pre‐emption rights

conferredbytheCompaniesAct2006inconnectionwiththeissueofupto14,962,099,216ofordinary

shares representing approximately forty

 per cent (40%) of the issued ordinary share capital of the

Companyasof30August2022andappliestotheallotmentauthorityconferredbyResolution3above.

ThisauthorityisinadditiontoanyexistingpowersconferredontheCompanyandexpires5yearsfrom

thedateofthis

Resolution.



EWFINANCINGFACILITYWITHEHGOSF



FollowingtheapprovaloftheCVAbycreditorsandshareholders,on28September2022Iconicenteredintoa

£3millionDeedofIssuanceandSubscriptioninrespectofloannotes(“Notes”)convertibleintonewordinary

shareswithsharesubscriptionwarrants(“Warrants”)attached(together“theFinancingFacility”)with

EHGOSF.

TheFinancingFacilitycanbedrawndowninupto14sequentialtranchesoveramaximumperiodof18months

andeachNotehasadurationof24monthsasfromitsdateofissue.

ICONICLABSPLC

CHIEFEXECUTIVEANDCHAIRMAN’SREPORT(Continued)



Page5



On the same day, Iconic submitted a drawdown notice for the first tranche of £250,000 and 781,250,000

warrantswith an exercise priceof GBP 0.00016.The subsequenttranches will be asfollows: (i) £150,000 for

tranches2through6;and(ii)£250,000fortranches7through14.



UndertheFinancing Facility, EHGOSF will provide Iconic with up to £3 million by subscribing for up to 3,000

Notes,eachwithaparvalueof£1,000,convertibleintonewordinarysharesintheCompany,withtheWarrants

attached.EachNoteisconvertibleintosharesofIconicataconversionpriceequaltothehighestofa)90%of

thelowestvolume‐weightedaveragepriceofthe15tradingdays

priortodeliveryofaconversionnoticeandb)

thenominalvalueoftheshares.Iconicistopayacommitmentfeeof£150,000inNotesunderthetermsofthe

Financing Facility. On termination of the Financing Facility Iconic has an obligation to pay EHGOSF an

administrationfee

inthetotalaggregateamountoftwentypercent(20%)oftheprincipalamountofallNotes

outstandingatthetimeofthetermination.



TheFinancingFacilityissubjecttoIconiccomplyingwithcertainobligationsandconditionsprecedent,including:



 Withrespecttothefourthtrancheonwards,thatthesuspensionon

Iconic ’ssharesfromtradingonthe

London Stock Exchange be lifted with 3 months of the agreement being entered into, and that the

shares of Iconic recommence trading on Main Market of the London Stock Exchange (the

“CommencementofTrading”);



 FromthefirsttranchefollowingtheCommencementof

Tradingonwards:



o the closing market price of the shares for each of the ten consecutive trading days falling

immediately prior to the relevant closing date must be at least higher than 150% of the

nominalvalueofIconic’sshares;and

o theaveragedailyvaluetradedofIconic’sshares

(excluding5%ofthedatapointsfromthetop

andexcluding5%ofthedatapointsfromthebottomofthedataset)forthe20tradingdays

immediatelypriortotheapplicableclosingdatemustbeatleast£10,000;



 FromthefifthTrancheonwards,Iconichavingpublished

aprospectus;



 NobindingcommitmenthavingbeenenteredintobyIconicpursuanttowhichachangeofcontrolin

Iconicwouldoccur;and



 Nooccurrencethatconstitutesaneventofdefaulthavingoccurredandiscontinuing.



TheWarrantswillamountto50%of thefinancingprovidedby

EHGOSFsuchthatthenumberofWarrantswill

beequalto50%oftheprincipalamountoftheNotesdividedbythewarrantexerciseprice.



BeforethetradingsuspensiononIconic’ssharesisliftedandtradingresumes,thewarrantexercisepricewillbe

equaltothesharepriceimmediatelyprior

tosuspension,or£0.00016pershare.



IfthetradingsuspensioninIconic’ssharesisliftedandtradingresumes,thewarrantexercisepricewillbeequal

to 120% of the share volume weighted average price of the shares over the 15 trading days immediately

precedingtherelevantsubscriptionorissuancerequest.





Iconicwillonlybeable todrawdown onthefirstthreetranches,foratotalof£550,000,priortothetrading

suspensioninIconic’ssharesbeingliftedbytheFinancialConductAuthorityandIconicisonceagaintradingon

theMainMarketoftheLondonStockExchange.TheIconic

executiveteam,advisorsandauditorsarediligently

workingtohavethetradingsuspensionliftedassoonaspossible.Iconicwillprovideupdatesonitsprogressin

duecourse.



On 28 October 2022, Iconic received a Subscription Form from EHGOSF for the second tranche of notes

amountingto£150,000 and468,750,000warrantswithanexercisepriceofGBP0.00016.

ICONICLABSPLC

CHIEFEXECUTIVEANDCHAIRMAN’SREPORT(Continued)



Page6



On 29 November 2022, Iconic received a Subscription Form from EHGOSF for the third tranche of notes

amountingto£150,000and468,750,000warrantswithanexercisepriceofGBP0.00016.



CVA

PAYMENTS



On21October2022, the first payments dueto critical and preferentialcreditors underthe CVA were timely

paid.Inaddition,onthesameday,thechallengeperiodtotheCVAexpiredwithoutanychallengeshavingbeen

made.Assuch,theCVAwasfinal, andtheJointAdministratorssubmittedtherequisite

filingswithCompanies

Housetothiseffect.



On29October2022,thesecondpaymentsduetocriticalandpreferentialcreditorsundertheCVAweretimely

made.



On8November2022,theJointAdministratorssubmittedtheirFinalReporttoCompaniesHouseandtheHigh

Court of Justice, Business & Property

Courts seeking to exit the administration and return control of the

CompanytotheDirectors.



On28November,thethirdpaymentsduetocriticalandpreferentialcreditorsundertheCVAweretimelymade.



On29November,CompaniesHouseandtheHighCourtofJustice,Business&PropertyCourtsconfirmedand



acknowledged the Joint Administrators’ Final Report such that the administration ended, and control of the

CompanywasreturnedtotheDirectors.



On28December 2022, the fourthpaymentsdue tocritical andpreferential creditorsunder the CVA shallbe

timelymade.



The Company and its advisors are currently in

discussions with the FCA to lift the trading suspension on the

Company’ssharesassoonaspossible.



INANCIALSUMMARY



Iconicincurredalossforthe2022financialyearof£762,107(2021‐£7,697,306).Duringthe2022financialyear,

Iconic Labs UK Limited and Wideacademy Limited were dissolved and all assets and liabilities in those

subsidiarieswerewrittendowntonilvalueintheconsolidatedfinancialstatements.



Currently,Iconic isat

anearlystageofdevelopmentitsfuturestrategyandisnotcurrentlyprofitable.Future

revenuesandprofitabilityaredependentonthetradingsuspensionbeinglifted.



Further details regarding the financial performance of Iconic can be found in the Strategic Report on the

followingpages.



BradTaylor

Director



Date:27December2022



ICONICLABSPLC

STRATEGICREPORT



Page7

INTRODUCTION



ThisisthesixthsetoffinancialstatementspreparedbyIconic.ForthereasonssetforthintheChiefExecutive

andChairman’sReportabove,thisStrategicReporthasbeenpreparedinthefourthquarterof2022andassuch,

details the strategy and risks of the Company from that time.

This Strategic Report should also be read in

conjunctionwiththeChiefExecutiveandChairman’sstatementwhichisincludedwithinthe2022AnnualReport.



PrincipalActivitiesandBusinessReview



Iconicisamediaandtechnologybusinessfocusedontheidentification,acquisitionandgrowthoftechnology

driven companies in the online

 media, artificial intelligence, and big data gathering, processing and analysis

sectors.

Iconic’ssoleassetisGayStarNews(“GSN”),anonlinemediaplatformdedicatedtotheLGBTQ+communityand

thatIconicintendstocontinuedevelopingwithstrategicpartners.

Iconic’sprincipalactivitiesintheshorttermareensuringcompliancewith

thetermsoftheCVAandsettlement

agreementsandworkingwiththeFCAtoliftthetradingsuspensiononIconic’ssharesassoonaspossiblesothat

theDirectorscanbeginworkingontheoperationalandstrategicobjectivesfortheCompany.

RINCIPALRISKSANDUNCERTAINTIES



ThefollowingrisksareconsideredbytheBoardtobethemostsignificanttothebusiness:



RevenueandProfitabilityRisk



Iconicremainsatanearlystageofdevelopmentwithonlyoneasset,GSN.Sincethebalancesheetdate,ithas

hadtorebalanceallpreviousactivitiesandisfocusing

oncompliancewiththetermsoftheCVAandsettlement

agreementsandworkingwiththeFCAtoliftthetradingsuspensiononIconic’ssharesassoonaspossiblesothat

theDirectorscanbeginworkingontheoperationalandstrategicobjectivesfortheCompany.

Iconic’sFinancingFacilitywithEHGOSFisconditional

upontheCompanytradingagain.IntheeventtheCompany

isnotrelistedandIconiccannotobta infinancingtoacquirecompaniesforitsportfolio,thereisariskthatIconic

willnotgeneratetherevenueandprofitabilitytoremainagoingconcern.

AdministrationRisk



Asoftheclosingofthe

2022accounts,theJointAdministratorscontrolledIconic,howeverpost‐closingofthe

2022accounts,IconicenteredintoaCVAwithallcreditors,hasexitedadministration,andisworkingwiththe

FCA on getting the trading suspension on its shares lifted. There is, however, a risk that Iconic’s trading

suspensionwill

notbelifted,inwhichcasetheEHGOSFfinancingwillcease,andtheCompanywouldhaveto

examinealternativefinancingstrategiesorundergoliquidationproceedingsshoulditnotbeabletocomplywith

itsfinancialobligationsundertheCVA.



KeyExecutiveRisk



Given the wholesale change in the Board of

Directors and executive team in February and March of 2021,

coupledwiththecomplexityoftherestructuring,administration,CVA,andrelistingprocesses,thereisariskof

Iconic not being able to retain key  executives, which could adversely affect Iconic’s operating and financial

performance.

Retainingandmotivatingkeyexecutives,particularlythose

whoworkeddiligentlywiththeJointAdministrators,

EHGOSF,andthevariouspartiesinvolvedindisputeswiththeCompany,tosuccessfullyrestructureIconicisa

criticalcomponentofthefuturesuccessofthebusiness.Withouttheparticipationofthesekeyexecutives,itis

highly unlikely that the execution of the CVA,

relisting of the Company, financing with EHGOSF, and

implementationofitsstrategicvisionwillbeimplemented.ThedepartureofanyofIconic’sexecutiveofficers

wouldhaveasignificantnegativeimpactonitsoperationsandlikelyresultintheliquidationofIconic.

ICONICLABSPLC

STRATEGICREPORT(continued)



Page8

FundingRisk



Iconicisatanearlystageofdevelopment,withonlyasingleasset,andisnotcurrentlyprofitable.WhileIconic

hasenteredintoa£3millionfinancingfacilitywithEHGOSFtherearenumerousconditionstothefinancingthat

ifnotmetwillresultinEHGOSFsuspendingorterminatingits

financingoftheCompany.Intheshortterm,the

highestriskaffectingthisfinancingfromEHGOSFisgettingthetradingsuspensiononIconic’sshareslifted.In

the event the trading suspension is not lifted, the likelihood of future financing from EHGSOF or any other

financingpartnerwillbedifficultifnot

impossible.



MarketRisk



Theonlinemediaandpublishing,technology,artificialintelligence,anddatagathering,processing,andanalytics

sectors are continually changing and have a significant amount of competition. Iconic has identified various

acquisition targets, butuntil such time as the trading suspension is lifted and Iconic’s financing situation can

correspondingly be solidified, it is difficult to predict the likelihood of these acquisition targets remaining

interested.Untilsuchtime,Iconicwillalsobe materiallyaffectedbythe actionsof competitors,partnersand

suppliers.AsaCompanyatanearlystageofdevelopment,Iconic’scompetitorscouldoffersuperiorscaleand

putpressure

onpriceswhichcouldaffectIconic’srevenuesandprofitmargins.



GlobalEconomicRisk



Theonlinemediaandpublishing,technology,artificialintelligence,anddatagathering,processing,andanalytics

sectorsaresusceptibletoadversedevelopmentsintheglobaleconomyandparticularlytheUKeconomywhere

Iconicislocated.Thecontinualuncertaintyover

BrexitorCOVID,forexample,maycontinuetodelayspending

bypotential clientswhich may have anegativeeffect onthedemand for services which couldaffectIconic’s

revenues.



PotentialUnrecordedLegacyLiabilities



As evidenced by the administration and disputes involving various key parties, there were significant legacy

issues

thatpredatedthenewmanagement’sarrivalwhentheytookcontrolofthebusiness.Followingtheexit

fromadministrationandtheenteringintoofconfidentialsettlementagreementswithvariousparties,itishighly

unlikelythatthereareanymaterialunknownliabilitiesofIconic.

ThecurrentstatusoftheoldWidecellssubsidiariesis

asfollows:

 WidecellsLimited–wasdissolvedon23August2022

 WideAcademy–wasdissolvedon26April2022

 WidecellsEspana–Hasenteredliquidationprocess.DIRECTORSHIPCIBELES,SL,asubsidiaryofGestiona‐t,

appointedliquidator.

 WidecellsPortugal–FollowingthedecisiontoceaseoperationsandintheabsenceoflocalDirectorstheUK

Boardhavebeentakinglegaladviceandareintheprocessofinstructingalocalliquidatortoformalisethe

cessationofthiscompanyanddischargeanyidentifiedobligations.

 CellplanInternationalLDA

–FollowingthedecisiontoceaseoperationsandintheabsenceoflocalDirectors

the UK Board have been taking legal advice and are in the process of instructing a local liquidator to

formalisethecessationofthiscompanyanddischargeanyidentifiedobligations.Aspartofthisreviewthe

Directorsaremakingenquiriesintotheregulatoryarrangementssurroundingthecompany’spromotingof

theStemCellinsuranceproduct.

 CellplanLimited–shareholderofCellplanInternationalLDA.Dormant

 WidecellsInternationalLimited–dormant



ICONICLABSPLC

STRATEGICREPORT(continued)



Page9

FinancialRiskManagement



TheBoardmonitorstheinternalriskmanagementfunctionacrossIconicandadvisesonallrelevantriskissues.

Thereisregularcommunicationwithinternaldepartments,externaladvisorsandregulators.Iconic’spolicieson

financialinstrumentsandtheriskspertainingtothoseinstrumentsaresetoutintheaccountingpolicies

innote

1ofthefinancialstatements.



FinancialReview



Iconicmadealossinthe2022financialyearof£762,107(2021‐£7,697,306).



Therevenue of the Group in theyearwas £26,823(2021‐£509,171).Administrativeexpensesdecreased by

£3,373,665intheyear,mainlyduetotheparentcompanybeinginadministrationfortheentirefinancialyear.



At30

June2022,Iconicheldtotal assets of£6(2021‐£154,056),followingthe writing down of assetsand a

provision for bad debts in the year as a result of the dissolution of Iconic LabsUK Limitedin June2022. The

Group had liabilities of £8,938,526 at the balance sheet date (2021

‐£8,330,469), an increase of £608,057.

Details of the CVA which has been approved post year end are also detailed in the Chief Executive and

Chairman’sReport.



KeyPerformanceIndicators:



Thebusinessisfocusedontheareasofcashmanagementandoperatingresults.



Iconichasidentifiedthefollowingkeyperformance

indicatorswhichtheDirectorswillusetomeasuresuccess

againstthebusinessplan:



 Grossrevenuegrowth

 EBITDAgrowth

 Marketvalue



UTUREDEVELOPMENTANDSTRATEGY



MarketTrends



The Directors closely follow the trends and developments in the online media and publishing, technology,

artificial intelligence, and big data gathering, processing, and analytics sectors. We see the shift continuing

towardsleaneronlinecompaniesthatcanscalerapidly,operateinternationallywithaninexpensivefootprint,

andprovideabroad

arrayofservicesacrossvarioussectorsthroughtheeffectiveuseofinformationandvideo

gathering,datamining,justintimeprocessing,andonlinecollaborationtechnology.



While the administration paused Iconic’s ability to conduct transactions in these sectors, the Directors

nevertheless continued to follow these market trends and are well positioned

 now that Iconic has exited

administrationtotakeadvantageofopportunitiesintheseareas.



CompanyStrategy



TheDirectorshaveidentifiednumerousplayersinthesectorsofinterest,manyofwhichhavetechnologicalor

operationaladvantages,butareunabletogrowandscalerapidlyorinternationallyforvariousreasonsincluding

the fragmented, localized, and isolated nature of their business models. We believe there is a significant

opportunityto support, acquire, and integrate these companiesinto Iconic given the Directors’ international

capabilitiesandstrategicgrowthexpertise.



ICONICLABSPLC

STRATEGICREPORT(continued)



Page10

Goingconcern



The Board’s assessment of going concern and the key considerations thereto, are set out in our Corporate

GovernanceReport.



CapitalStructure



DetailsoftheordinarysharesoftheCompanyareshowninnote13.TheCompanyhasaclassofordinaryshares

withanominalvalueof

£0.00001pershareandaclassofdeferredsharesof£0.00249pershare,bothofwhich

carrynofixedincome.EachholderofordinarysharesisentitledtoreceiveIconic’sAnnualReportandaudited

financial statements,to attend and speak or appoint proxies and to exercise voting rights at Iconic’s general



meetings.



TheCompany’s Articlesof Association(the“Articles”)donothaveanyspecific restrictionson thetransfer of

shares or restrictions on voting rights, and there are no limitations on holding such shares. Other than the

obligationscontained in the Financing Facilitywith EHGOSF and the CVA, theDirectors

 arenot aware of any

agreementbetweenIconicshareholdersthatmayresultinrestrictionsonthetransferofsecuritiesoronvoting

rights.



NopersonhasanyspecialrightsofcontroloverIconic’ssharecapitalandallissuedsharesarefullypaid.



TheappointmentandreplacementofDirectorsandthe

powersoftheDirectorsaregovernedbytheArticles,

theQuotedCompaniesAllianceCorporateGovernanceCode,theCompaniesAct2006andrelatedlegislation.

ThepowersoftheDirectorsaredescribedintheCorporateGovernanceReportonpages12‐17.



EnvironmentalIssues



AsfarastheDirectorsareaware,Iconic’s

businessactivitiesdonotcauseadirectanddisproportionateadverse

effectontheenvironment.



EmployeeMatters



Asof30June2022,andcontinuingthroughthefourthquarterof2022,Iconicdoesnothaveanyemployeesand

itsmanagementisbeingconductedprimarilybyBradTaylorandDavidŠtýbrwhohave

workedwiththeJoint

Administrators and creditors to restructure the company and exit administration, resolve all outstanding

disputes,andgetthetradingsuspensiononIconic’shareslifted.



Social,communityandhumanrightsissues



Iconicseekstoachievethehighestethicalstandardsandbehavioursinconductingitsbusiness, withintegrity,

openness,

diversityandinclusivenessbeingapriority.



Wehaveadoptedaformalequalopportunitiespolicywhichiscontainedinouremployeehandbook.Theaimof

thepolicyistoensurenojobapplicant,employeeorworkerisdiscriminatedagainsteitherdirectlyorindirectly

onthe groundsofrace,sex,disability,sexual

orientation,genderreassignment;marriageorcivilpartnership;

pregnancyormaternity;religionorbelieforage.



SECTION172STATEMENT



Section172oftheCompaniesAct2006requiresdirectorstotakeintoconsiderationtheinterestsofstakeholders

andothermattersintheirdecisionmaking.The Directorscontinuetohaveregardto

theinterestsof Iconic’s

personnel and other stakeholders, the impact of its activities on the community, the environment and its

reputationforgoodbusinessconduct,whenmakingdecisions.Inthiscontext,actingingoodfaithandfairly,the

Directorsconsiderwhat ismost likely topromotethe success ofIconicfor

its membersin thelong term.We

explaininthisannualreport,andbelow,howtheBoardengageswithstakeholders.

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

Page11



Relationswithkeystakeholderssuchasemployees,shareholdersandsuppliersareconsideredinmoredetailon

pages12to17.



TheDirectorsareawareoftheirresponsibilitiestopromotethesuccessofIconicinaccordancewithsection172

oftheCompaniesAct2006.To ensureIconicwasoperatinginline

withgoodcorporatepractice,allDirectors

receivedrefreshertrainingonthescopeandapplicationofsection172inwriting.ThisencouragedtheBoardto

reflectonhowIconicengageswithitsstakeholdersandopportunitiesforenhancementinthefuture.Asection

172noticehasbeenincludedwiththeBoardpapers

sincethisdate.Asrequired,Iconic’sCompanySecretarywill

providesupporttotheBoardtohelpensurethatsufficientconsiderationisgiventoissuesrelatingtothematters

setoutins172(1)(a)‐(f).



The Board regularly reviews Iconic’s principal stakeholders and how It engages with them. This is achieved

through

information provided by management and by direct engagement with stakeholders themselves. We

aimto work responsibly with our stakeholders,including suppliers.TheBoard has recentlyreviewedits anti‐

corruptionandanti‐bribery,equalopportunitiesandwhistleblowingpolicies.



GiventhatIconicwasstillinadministrationfrom1July2021through30

June2022,Iconicdidnothave,andwas

notpermittedtohave,anyBoardmeetingsduringthisperiod.



BradTaylor

Director

Date:27December2022

ICONICLABSPLC

CORPORATEGOVERNANCEREPORT



Page12

AsChairmanoftheCompany,itismyresponsibilitytoworkwithmyfellowBoardmemberstoensurethatthe

CompanyembracesthehigheststandardsofcorporategovernanceandtomanagetheBoardinthebestinterests

ofourmanystakeholders.TheBoardsharesmybeliefthatpracticingsolidcorporategovernance

isessentialfor

buildingasuccessfulandsustainablebusiness,andourcommitmenttogoodcorporategovernancehasallowed

ustobuildahealthycorporateculturethroughouttheorganization.



The Company has adopted the Quoted Companies Alliance Corporate Governance Code (2018) (the “QCA

Code”),whichitbelievestobethemost

appropriategovernancecodeforIconic.Wereportourcompliancewith

theQCACodeinthisAnnualReport.



The Directors closely follow the trends and developments in the online media and publishing, technology,

artificialintelligence,andbigdatagathering,processing,andanalyticssectors.Iconichasacorporatestrategyto

identifyand

developleaneronlinecompaniesthatcanscalerapidly,operateinternationallywithaninexpensive

footprint,andprovideabroadarrayofservicesacrossvarioussectorsthroughtheeffectiveuseofinformation

andvideogathering,datamining,justintimeprocessing,andonlinecollaborationtechnology.Iconicdelivers

itsbusinessstrategywithtightly

controlledoverheads,supplementingitsfinancialresourcesthroughcorporate

transactions,JVsandpartnershipsaswellastradinganddisposalsorexchangesofnon‐coreassets.



TheBoardupholdsitsresponsibilitytogoverntheCompanyinthebestinterestsofallitsstakeholders.TheBoard

takeschargeofformulating,reviewingandapproving

theCompany’sstrategy,financialactivitiesandoperational

performance.There are Audit and Remuneration Committees established to provide additional review and

scrutinyintheirrespectiveareas.TheCommitteesreportbacktotheBoard,followingeachcommitteemeeting

andmakeappropriaterecommendationswithregardtothemattersundertheirpurview.



The Board,

as a whole, is committed to instill a culture across the Company, delivering strong values and

behaviours.



Iconicrecognizesallsectorsofstakeholdersindeliveringourstrategyandwearemindfulofourresponsibilities

and duties to our stakeholders. The importance of engaging with our shareholders continues, and the Board

strivestoensurethatthereareopportunitiesforinvestorstoengagewiththeBoard.



QCACODE–APPLICATION,PRINCIPLESANDDISCLOSUREREQUIREMENTS



Until October 2019, Iconic gave due regard to the principles set out in the UK Corporate Governance Code

published in April 2016 by the Financial Reporting Council and

 the Quoted Companies Alliance published

CorporateGovernanceGuidelines.InOctober2019,IconicformallyadoptedtheQCACodewhichisanenabling,

principles‐based, corporate governance code for companies focused on growth. Iconic is committed to

maintaining and promoting robust corporate governance structures and processes to support its long‐term

success.



TheQCACodesetsouttenprinciplesthatarelistedbelowtogetherwithashortexplanationofhowtheCompany

applieseachoftheprinciplesandreasonsforanynon‐compliance.



Principle1:Establishastrategyandbusinessmodelwhichpromotelong‐termvalueforshareholders



Detailsonthe

strategyandbusinessmodelareincludedinthestrategicreport.



Principle2:Seektounderstandandmeetshareholderneedsandexpectations



Relationshipwithshareholders



PrimaryresponsibilityforeffectivecommunicationwithshareholderslieswiththeChairmanandChiefExecutive

Officer,BradTaylor,butallDirectorsareavailabletomeetwithshareholdersthroughouttheyear.Mr.Taylor

has been active in meeting with and preparing presentations for investors. Iconic endeavours to answer all

queriesraisedby

shareholderspromptly.

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

Page13

Principle3:Takeintoaccountwiderstakeholderandsocialresponsibilitiesandtheirimplicationforlong‐term

success



EnvironmentalIssues



AsfarastheDirectorsareaware,Iconic’sbusinessactivitiesdonotcauseadirectanddisproportionateadverse

effectontheenvironment.



EmployeeMatters



Asof30June2022,Iconicdoesnothaveanyemployeesanditsmanagementissolelybeingconductedbythe

executiveofficersandnon ‐executiveDirectorswhoareworkingwiththeJointAdministratorsandcreditorsto

restructure the company and exit administration, resolve all outstanding disputes, and get the trading

suspensiononIconic’shareslifted.



Social,communityandhumanrightsissues



Iconicseekstoachievethehighestethicalstandardsandbehavioursinconductingitsbusiness,withintegrity,

openness,diversityandinclusivenessbeingapriority.



Wehaveadoptedaformalequalopportunitiespolicywhichiscontainedinouremployeehandbook.Theaimof

thepolicyistoensurenojobapplicant,employee

orworkerisdiscriminatedagainsteitherdirectlyorindirectly

onthe groundsof race,sex, disability, sexualorientation, gender reassignment;marriage orcivil partnership;

pregnancyormaternity;religionorbelieforage.



Principle4: Embed effective risk management,considering both opportunities and threats,throughoutthe

organisation



Detailsonthestrategy

andbusinessmodelareincludedinthestrategicreport.



Principle5:Maintaintheboardasawell‐functioning,balancedteamledbythechair



Asof30June2022,theBoardcomprisedthefollowing:

‐ 

‐ BradTaylor:ChiefOperatingOfficer&Chairman

‐ DavidŠtýbr:Non‐ExecutiveDirector



‐ WilhelmusvanderMeer:Non‐ExecutiveDirector

‐ MarijaHrebac,Non‐ExecutiveDirector



HowtheBoardfunctions



The Board is collectively responsible for Iconic’s long‐term success. The Board provides entrepreneurial

leadershipforIconicwithinaframeworkofprudentandeffectivecontrolswhichenablesrisktobeassessedand

managed.TheBoardconsidersthemanagementteam’sproposalsforstrategyand,followingaconsiderationof

those proposals, determines

Iconic’s strategy and ensures that the necessary resources are in place for

managementtoexecutethatstrategy.FurtherdetailsonIconic’sbusinessmodelandstrategycanbefoundin

theStrategicReport.



AnimportantpartoftheBoard’sroleisthereviewofmanagementperformance.Iconic’sprocessforevaluating

theeffectiveness

oftheBoardandDirectors’performancewillcompriseanannualinternalreviewofexecutive

andnon ‐executiveDirectors’performanceandatriennialreviewofBoardperformancebyexternalproviders.

The results of such reviews will be used to determine whether any alterations are needed or whether any

additionaltrainingwould

bebeneficial.

ICONICLABSPLC

CORPORATEGOVERNANCEREPORT(Continued)



Page14

Responsibilityanddelegation



TheBoardhasspecificallyreservedanumberofmattersforitsconsiderationandapproval.Theseinclude:

 OverallleadershipofIconicandsettingIconic’svaluesandstandards

 ApprovalofIconic’slong‐termobjectivesandcommercialstrategy

 Approvaloftheannualoperatingandcapitalexpenditurebudgetsandanychanges

tothem

 Majorinvestmentsorcapitalprojects

 TheextensionofIconic’sactivitiesintoanynewbusinessorgeographicareas

 Anydecisiontoceaseanymaterialoperations

 ChangesinIconic’scapitalstructureormanagementandcontrolstructure

 Approvaloftheannualreportandaccountsandpreliminaryand

half‐yearlyfinancialstatements

 Approvaloftreasurypolicies,includingforeigncurrencyexposuresanduseoffinancialderivatives

 Ensuringthemaintenanceofasoundsystemofinternalcontrolandriskmanagement

 Theenteringintoofagreementsthatarenotintheordinarycourseofbusinessormaterialstrategically

or

byreasonoftheirsize

 Changestothesize,compositionorstructureoftheBoardanditscommittees



Boardbalance



The Board comprises individuals with wide business experience gained in various industry sectors related to

Iconic’s business and it is the intention of the Board to ensure that the balance of the Directors reflects the

changingneedsofthatbusiness.TheBoardconsidersthatitisofasizeand

hasthebalanceofskills,knowledge,

experience and independence that is appropriate for Iconic’s business. While not having a specific policy

regardingtheconstitutionandbalanceoftheBoard,potentialnewDirectorsareconsideredontheirownmerits

withregardstotheirskills,knowledge,experienceandcredentials,regardlessofgender,race,

ethnic,ornational

background.



TheQCACoderequiresthattheboardsofcompanieshaveanappropriatebalancebetweenExecutiveandNon‐

ExecutiveDirectors.GiventheBoardcomprisesoneExecutiveDirectorandthreeNon‐ExecutiveDirectorsitis

feltthatgiventhecurrentsizeoftheBoardandtheCompanythere

isastrongenoughpresenceofindependent

judgement.

Principle 6: Ensure that between them the Directors have the necessary up‐to‐date experience, skills and

capabilities



BoardMemberBiographies



BradTaylor



Mr. Taylor began his career as an attorney with law firms Akin Gump Strauss Hauer & Feld in Houston, and

Greenberg Traurig in Dallas before switching to private equity as a director with Holland Park Capital in

Austin.Fromthere,heworkedinParisastheGeneralCounselandmember

oftheExecutiveCommitteeofOrco

PropertyGroup.While atOrco,heserved ontheboardofOrcoGermanyinBerlin,andtheboardof Suncani

HvarHotels,apublicprivatepartnershipwiththeRepublicofCroatia.NowbasedinWashingtonDC,heisthe

CEOofOtt VenturesUSAand

of Iconic Labs, anLSElisted company.ACanadian citizen,hehas aBachelorof

CommercedegreefromMcGillUniversity,aJurisDoctoratefromBaylorUniversitySchoolofLaw,anMBAfrom

INSEAD,andstudiedInternationalLawatCambridgeUniversity.



DavidŠtýbr



Mr.Štýbr’scareerhasbeenorientedonbusinessactivities,projectleadershipandassetmanagement.Hismain

focuses have been in finance, investments, private equity, venture capital and real estate, with significant

experience working for investment companies operating on US futures markets, management positions in a

leading CEE real estate company,

and leading a family office. He also has expertise in strategic planning and

preparingmeasurabletargetstobeachievedbycorporations,aswellasfinancialoversight.

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Page15



WilhelmusvanderMeer



Mr.VanDerMeerhasextensiveexperienceintheequity,capitalraising,andrestructuringsectorsthroughout

Europe.ADutchnative,hebeganhiscareerininstitutionalequitysaleswithDWBrandNVbeforebecomingthe

founderofoneofthelargestmid/smallcapinvestmentbanksintheNetherlands,AmsterdamEffecten

Kantoor.

HehasalsoservedastheCEO ofGreenstoneGold,theFounderandGeneralManagerofPetiteFleur,andSenior

AdvisortoGlobalEcoPower,S.A.



MarijaHrebec



Marijahasover20yearsofexecutiveexperiencemanagingavarietyofcomplexorganizations.Shehasworked

with international corporations including Schering‐Plough, MSD, L’Oréal, and Alas International at both the

national and international levels, and has also worked across various industries including pharmaceutical,

construction, cosmetics, hospitality, and banking. Marija’s expertise revolves around the implementation of

business processes, establishing organisational structures, turnarounds, crisis management, operational

consolidations,andbusinessintegrations.Since2012,MarijahasbeenleadingtheCroatianDepositInsurance

Agency with a focus on implementing international standards and improving the national deposit guarantee

system.Inaddition,sheisamemberoftheCroatianFinancialStabilityCommittee,amemberoftheExecutive

CounciloftheInternationalAssociationofDepositInsurers,andthevice‐chairoftheEuropeanForumofDeposit

Insurers.Marijaholdsamaster’sdegreeinOrganizationsandManagementfromtheFacultyofEconomicsand

BusinessattheUniversityofZagreb.



Principle 7: Evaluate Board performance based on clear and relevant objectives, seeking continuous

improvement



TheBoardholdregularmeetingsandonaquarterlybasisconductareviewofCompanyperformancebasedboth

on the quantitative metrics discussed in the strategic report and also longer‐

term strategic targets such as

acquisitionsorcapitalsourcing.



Where there is an opportunity, the Board will add members who possess key experience and expertise in

particularareasthatalignwiththeCompany’slong‐termambitions.



Principle8:Promoteacorporatestructurethatisbasedonethicalvaluesandbehaviours



Social,communityandhumanrightsissues



openness,diversityandinclusivenessbeingprioritiesfromtheBoardtoseniormanagementandthroughoutthe

workforce.



Wehaveadoptedaformalequalopportunitiespolicywhichiscontainedinouremployeehandbook.Theaimof

thepolicyistoensurenojobapplicant,employeeorworkerisdiscriminatedagainsteitherdirectly

orindirectly

onthe grounds of race, sex,disability, sexualorientation,gender reassignment; marriageor civil partnership;

pregnancyormaternity;religionorbelieforage.



Inpresentingthisreport,andhavingmonitored,reviewedorapprovedrecentshareholdercommunications,the

Boardisconfidentthatithaspresentedabalancedandunderstandable

assessmentoftheIconic’spositionand

prospects.



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Page16



Principle9:Maintaingovernancestructuresandprocessesthatarefitforpurposeandsupportgooddecision‐

makingbytheBoard



RemunerationCommittee



At 30 June 2022, the Remuneration Committee is comprised of Brad Taylor and David Štýbr. There are no

employeesasofthatdateandcontinuingthroughthefourthquarterof2022.Sincethechangeofmanagement

in March2021untilthe fourth quarter of2022, therehave been no Remuneration

Committeemeetings as a

resultoftheadministrationandrestructuringoftheCompany.



The Remuneration Committee’s role is to set Iconic’s remuneration policy, determine the remuneration

packagesoftheexecutiveDirectorsandsetthetargetsforperformance‐relatedpay.



TheRemunerationCommitteeshall:



 Discussandapprovethesalaries

andbenefitsforthekeyemployeesandexecutives.

 Discussandagreedeferralofcertainpartsofthesalariesandbenefits.

 Discussaproposedemployeeoptionschemewhichitintendstoimplementinthenearfuture.



AuditCommittee



At 30 June 2022, the Audit Committee is comprised of Brad Taylor and David Stybr. Iconic’s accounting is

providedbyAzetsanditsauditsareconductedbyNordensAuditLimited.From1July2021throughthefourth

quarterof2022,therehasonlybeenoneAuditCommitteemeetingthatwas

heldtoapprovethis2022Audited

AnnualReport&Accounts. 



TheAuditCommitteeshall:



 Monitor the integrity of the financial statements and any formal announcements relating to financial

performance.

 Reviewinternalfinancialcontrolsandriskmanagementsystems.

 Make recommendations to the Board in relation to the appointment,

 re‐appointment and removal of

auditors,includingapprovingtheremunerationandtermsofengagementoftheauditor.

 Reviewtheauditor’sindependenceandobjectivity

 Developandimplementthenon‐auditservicespolicy.



BoardandCommitteeResponsibilityandActivity



TheTermsofReferenceforeachofthecommitteesshallbeavailabletoviewontheCompany’swebsite.



Board meetings are usually held at the Company’s principal working office, however due to the COVID‐19

pandemic the Directors moved towards holding meetings online. Directors are provided with comprehensive

backgroundinformation

foreachmeetingandallDirectorshavebeenabletoparticipatefullyandonaninformed

basisintheBoarddecisions.Inaddition,certainmembersoftheseniormanagementteamhavebeeninvitedto

attendthewholeorpartsofthemeetingstodeliverreportsonthebusiness.Anyspecific

actionsarisingduring

meetingsareagreedbytheBoardandfollowedupandreviewedatsubsequentBoardmeetingstoensuretheir

completion.



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Page17

Principle10:Communicatehowthecompanyisgovernedandisperformingbymaintainingadialoguewith

shareholdersandotherrelevantstakeholders.



Relationshipwithshareholders



UpuntilthetimethatIconicenteredadministration,theChiefExecutiveOfficerwasactiveinmeetingwithand

preparing presentations for investors. Since the administration began, Iconic, through the office of the Joint

Administrators,hasendeavouredtoanswerallqueriesraisedbyshareholderspromptly.



Investorrelations(IR)andcommunications



Whenever required, the Executive Directors communicates with Iconic’s brokers to confirm shareholder

sentimentandtoconsultonparticulargovernanceissues.



IntheperiodsinceIconic’sadmission,regulatoryannouncementshavebeenreleasedinformingthemarketof

certain matters. Copies of these announcements, together with other IR information and documents, are

available

onIconic’swebsite.



Insuranceandindemnity



In accordance with Article 54 of the Articles of Association, Iconic’s Directors and officers are entitled to an

indemnityfromIconicagainstliabilitiesincurredbythemintheactualorpurportedexerciseoftheirduties,or

exerciseoftheirpowersincludingliabilityincurred

indefendinganyproceedings(whethercivilorcriminal)which

relatetoanythingdoneor omittedtobe doneand inwhich judgmentisgiven inhis favour,orinwhich heis

acquitted,orwhichareotherwisedisposedof.



GoingConcernAssessment



Priortoenteringadministration,theBoardwastaking

stepstoensurethatIconicwouldbeinapositiontomeet

itsoperatingcostsgoingforwardandwasconfidentthatallliabilitiesthatexistedwouldbecapableofbeingmet

viafinancingwithEHGOSF.



Atpresent,giventhatIconicisinadministration,restructuringworkwillbeundertakenwithall

creditorswitha

goaloffindingaresolutiontoallclaimsandoutstandingdisputessuchthatIconiccanexitadministration,resume

trading,andbeginimplementingitsstrategicobjectives.



BradTaylor

Director

Date:27December2022



ICONICLABSPLC

REMUNERATIONCOMMITTEEREPORT



Page18

RemunerationCommittee



OnceIconicresumestradingandoperationsarestabilised,aRemunerationCommitteewillbeheldtoassistthe

Boardindeterminingitsresponsibilitiesinrelationtoremuneration,includingmakingrecommendationstothe

Board on employment contracts for key personnel, bonus compensation to those who restructured the

Company,exitedadministration,

resolvedalloutstandinglegaldisputes,andrelistedtheCompany,andapolicy

onexecutiveremuneration,settingtheover‐archingprinciples,parametersandgovernanceframeworkofthe

Iconic'sremunerationpolicyanddeterminingtheindividualremunerationandbenefitspackageofeachofthe

ExecutiveDirectors.



TheRemunerationCommitteeshallensurecompliancewith

theQCACodeinrelationtoremunerationwherever

possible.



RemunerationPolicy



The main aim of Iconic's remuneration policy shall be to align the interests of Executive and Non‐Executive

DirectorswithIconic'sbusinessstrategyandthelong‐termcreationofshareholdervalue.Thepolicyshallaimto

paytheDirectors

competitively,whilstconsideringtheremunerationpracticesofotherinternationalcompanies

of similar size and scope, the current economic climate, the regulatory and governance framework,

remuneration around these companies and the need to ensure that the Directors are remunerated

appropriately,whilstensuringthatIconicpaysnomorethanisnecessary.



The

RemunerationCommitteeshallhavenoformalmethodofinvolvingemployeesinthesettingofDirectors'

remuneration,howeverthemembersoftheRemunerationCommitteeshallhaveaccesstoemployeesbothin

formalandinformalsettingsandtakeintoaccountthelevelofemployeeremunerationwhensettingDirectors'

remuneration.



Shareholders’ views on

 Directors' remuneration shall be taken into account when setting the Remuneration

Policy.



Compensation



AllmanagementservicesfortheCompany,including,butnotlimitedto,financialandcorporaterestructuring,

negotiations with the joint administrators and creditors, implementation of the CVA, settlement of all

outstanding disputes, negotiation with EHGOSF for financing,

corporate governance, administration and

accounting,shareholdermeetings,identificationofpotentialacquisitions,strategicdevelopment,relationswith

the FCA and LSE, and communications to the marketplace are being rendered to Iconic pursuant to a

Management Services Agreement (the “MSA”) effective 1 February 2021 with Ott Ventures, s.r.o. and Ott

VenturesUSAInc.

(the“OttCompanies”)foratotalof£50,000/month.



Asof30June2022,theOttCompanieshadreceivedatotalof£365,000undertheMSAandhadsubmitteda

claimfor£270,000inunpaidfeesundertheCVA.Aswithallunsecuredcreditors,theOttCompanieswillreceive

Iconic

sharesat£0.25per£1.00ofclaimsundertheCVAinfullsatisfactionofthis£270,000claim.



On1October2022,onlyaftertheCVAhadbeenapprovedbyboththecreditorsandshareholders,settlements

ofalldisputeshadbeenexecuted,andanew£3millionfinancingfacilitywithEHGOSF

hadbeensigned,didthe

OttCompaniesinvoiceIconic£365,000asasuccessfeefortheextensiverestructuringandsettlementworkthey

hadperformedthrough30September2022.Giventhatthecashprioritiesatthistimeinvolvemakingpayments

tothepreferentialandcriticalcreditorsundertheCVAandpaying

thecostsandexpensesrelatedtotheCVA,

theOttCompanieshavenotyetbeenpaidfromIconicrelatedtothis£365,000successfee.InOctoberof2022,

theOttCompaniesalsoresumedinvoicingIconic£50,000permonthundertheMSA.However,inaneffortto

again manage Iconic’s cash  flow,

 the Ott Companies have only been paid £25,000 per month for October,

NovemberandDecember2022fromthefirstthreetranchesofthenew£3millionfinancingfacilitywithEHGOSF.



ICONICLABSPLC

REMUNERATIONCOMMITTEEREPORT(Continued)



Page19

TheOttCompaniesarebeingcompensatedinlinewiththetimecommitmentandresponsibilitiestheirpersonnel

areprovidingIconic.Thiscompensationissimilartothatprovidedtofirmswhoseseniorexecutivesareengaged

inthecomplexrestructuring,CVA,stabilization,settlement,andstrategicbusinessplanningrequiredtomanage

publiclylistedcompaniesinvolved

insimilarlydistressedsituationsasIconic.



RecruitmentPolicy



At present, recruiting is not a priority, but once trading has resumed, and strategic objectives begin to be

implemented,theRemunerationCommittee'sapproachtoremunerationwithregardtorecruitingstaffshallbe

topaynomorethanisnecessarytoattract

candidatesoftheappropriatecalibreandexperienceneededforthe

role. The Remuneration Committee would consider payment of compensation for the forfeiture of variable

awardsfrompreviousemployersonanindividualbasis.IconicwouldonlyconsidercandidatesforaDirectorship

iftheyholdthenecessary experience and qualities to helpIconic

prosper, and in turngenerate value for the

shareholders.ThetablebelowsetsouttheprinciplesuponwhichtheRemunerationCommitteeshallapproach

recruitmentofnewExecutiveDirectorsinregardtoeachelementofremuneration.



RemunerationType Purpose

BasicSalary Toprovidethebasisofamarketcompetitiveoverallremuneration.



Takesaccountoftherole,skills,experienceandcontributionoftheindividual.

AnnualBonus Toincentiviseexecutivestoachievekeystrategicoutcomesanddelivervalue

fortheshareholders.



ExitPayments



When determining any loss of office payment for a departing individual the Remuneration Committee shall

ensurethataconsistentapproachisadoptedsothatthereisnorewardforpoorperformanceandtheliabilities

ofIconicareminimisedwhereappropriate.



No amount shall be payable if an

Executive Director is dismissed for serious breach of contract, serious

misconductorunder‐performanceoractsthatbringtheExecutiveDirectors,orIconic,intoseriousdisrepute.



ThetablebelowsetsoutthepolicyonexitpaymentsinrelationtoeachelementofremunerationforExecutive

Directors:



RemunerationType Effectof

termination

BasicSalary Basicsalarywillbepaiduptoandincludingtheterminationdate.Paymentin‐

lieuofnoticemaybeconsidered.



AnnualBonus The executive may still be entitled to an annual bonus should their

performance merit, although this is at the discretion of the Remuneration

Committee. In the event of misconduct, the executive will lose any

entitlementtoabonus.



BradTaylor

Director

Date:27December2022

ICONICLABSPLC

AUDITCOMMITTEEREPORT



Page20

The Audit Committee considers Iconic’s financial reporting, including accounting policies, and internal

financialcontrols.ItisresponsibleforensuringthatIconic’sfinancialperformanceisproperlymonitoredand

reportedon.TheAuditCommitteeaimstomeetatleasttwiceayear,oncewiththeauditors,andiscomprised

ofBradleyTaylorand

DavidŠtýbr.However,from1July2021throughthefourthquarterof2022,therehas

only been one Audit Committee meeting that was held to approve this 2022 Audited Annual Report &

Accounts.



Iconic’saccountingisprovidedbyAzetsanditsauditsareconductedbyNordensAuditLimited.



RoleoftheCommittee



The Audit Committee determines and examines any matters relating to the financial affairs of the Group

including:



‐ Monitoringtheintegrityof thefinancialstatements and any formal announcementsrelating

to financial

performanceto ensurethat they adequately comply with appropriateaccounting policies,practices and

legalrequirements;

‐ Reviewinginternalfinancialcontrolsandriskmanagementsystems;

‐ Making recommendations to the Board in relation to the appointment, re‐appointment and removal of

auditors,includingapprovingtheremunerationandtermsof

engagementoftheauditor;

‐ Reviewingtheauditor’sindependenceandobjectivity;and

‐ Developingandimplementthenon‐auditservicespolicy.



BradTaylor

Director

Date:27December2022



ICONICLABSPLC

DIRECTORS’REPORT



Page21



DIRECTORS’REPORT



ThedirectorspresenttheirreporttogetherwiththeauditedfinancialstatementsofIconicLabsPLCandits

subsidiariesfortheyearended30June2022.



Directors



TheDirectorsasof30June2022were:



BradTaylor

DavidStybr

WilhelmusVanDerMeer

MarijaHrebac



MattersCovered

intheStrategicReport



Areviewofthebusiness,futuredevelopments,subsequenteventsandrisksanduncertaintiesisincludedin

thestrategicreport.



Dividends



Thedirectorsdonotrecommendthepaymentofadividendfortheyearended30June2022(30June2021:

£nil).



CorporateGovernancestatement



TheCorporateGovernancereportformspartoftheDirectors’Report.



PostBalanceSheetEvents



ThecompanyenteredadministrationinJune2021andasof30June2022remainedinadministration.Given

thatthisreporthasbeenpreparedinthefourthquarterof2022,numerouspostbalancesheeteventshave

been

presented.



Furtherdetailscanbefoundinnote2ofthefinancialstatements.



GreenhouseGasEmissions



Asfarasthedirectorsareawarethecompany’scurrentbusinessactivates(thecreationofonlinemediaand

advertising)donotcausemorethananegligibleamountofemissions.



Directors’Responsibilities



The

directorsareresponsibleforpreparingthedirectors’reportandthefinancialstatementsinaccordance

withapplicablelawandregulations.



Company lawrequires thedirectors to prepare financialstatements foreach financial period.Underthat

law,thedirectorshaveelectedtopreparethefinancialstatementsinaccordancewithInternationalFinancial

Reporting

Standards(“IFRS”)asadoptedbytheUnitedKingdom.Thefinancialstatementsarerequiredby

lawtogiveatrueandfairviewofthestateofaffairsoftheCompanyandtheGroupandoftheGroup’sresults

forthatperiod.



Inpreparingthesefinancialstatements,thedirectorsare

requiredto:



ICONICLABSPLC

DIRECTORS’REPORT(continued)





Page22

 selectsuitableaccountingpoliciesandthenapplythemconsistently;

 makejudgmentsandestimatesthatarereasonableandprudent;

 statewhetherthefinancialstatementscomplywithIFRSasadoptedbytheUnitedKingdom;and

 preparethefinancialstatementsonthegoing‐concernbasisunlessitisinappropriateto

presumethat

theGroupandCompanywillcontinueinbusiness.



Thedirectorsareresponsibleforkeepingadequateaccountingrecordsthataresufficienttoshowandexplain

the Group’s and Company’s transactions and disclose with reasonable accuracy at any  time the financial

positionoftheGroupandenablethemtoensure

thatthefinancialstatementscomplywiththeCompanies

Act2006.TheyarealsoresponsibleforsafeguardingtheassetsoftheGroupandhencefortakingreasonable

stepsforthepreventionanddetectionoffraudandotherirregularities.



WebsitePublication



ThedirectorsareresponsibleforensuringtheAnnualReportand

financialstatementsaremadeavailableon

thewebsite.FinancialstatementsarepublishedontheGroup’swebsiteinaccordancewithlegislationinthe

UnitedKingdomgoverningthepreparationanddisseminationoffinancialstatements,whichmayvaryfrom

legislation in other jurisdictions. The directors are responsible for the maintenance and integrity of the



corporateandfinancial informationincluded on theCompany’swebsite.Thedirectors’ responsibilityalso

extendstotheongoingintegrityofthefinancialstatementscontainedtherein.



Directors’ResponsibilitiesPursuanttoDTR4



Thedirectorsconfirmthattothebestoftheirknowledge:



 theGroup financialstatementshavebeenpreparedin

accordancewithinternationalFinancialReporting

Standards(IFRS)asadoptedbytheUnitedKingdomandArticle4oftheIASregulationandgiveatrue

andfairviewoftheassets,liabilities,financialpositionandprofitandlossoftheGroup;and

 theannualreportincludesafairreviewof

thedevelopmentand performanceofthebusinessandthe

position ofthe Group,and theparent company,togetherwith adescription of theprincipal risks and

uncertaintiesthattheyface.



Statementofdisclosuretoauditor



Eachdirectoratthedateofapprovalofthisannualreportconfirmsthat:



 so far as the directors are aware, there is no relevant audit information of which the Group’s and

Company’sauditorisunaware;and

 all the directors have taken all the

 steps that they ought tohave taken as directors in order to make

themselvesaware ofanyrelevantauditinformation and to establishthattheauditorisaware ofthat

information



Auditor



Theauditor,NordensAuditLimited,willbeproposedforre‐appointmentattheforthcomingAnnualGeneral

Meeting.



BradTaylor

OnbehalfoftheBoard

Date:December2022

ICONICLABSPLC

INDEPENDENTAUDITOR’SREPORT

FORTHEYEARENDED30JUNE2022





Page23

 Whatwehaveaudited



WehaveauditedthefinancialstatementsofIconicLabsPLC(the“ParentCompany”)anditssubsidiaries(the

“Group”)fortheyearended30June2022,whichcomprisethe:ConsolidatedStatementofComprehensive

Income, Consolidated Statement of Financial Position, Consolidated Statement of Changes in Equity,

Consolidated Statement

 of Cash Flows, Company Statement of Financial Position, Company Statement of

ChangesinEquityandthenotestotheconsolidatedfinancialstatements,includingasummaryofsignificant

accountingpolicies.



Thefinancialreportingframeworkthathasbeenappliedinthepreparation oftheGroupfinancialstatements

isapplicablelawandInternational

FinancialReportingStandards(IFRSs)asadoptedbytheUnitedKingdom.

ThefinancialreportingframeworkthathasbeenappliedinthepreparationoftheParentCompanyfinancial

statements is applicable law and United Kingdom Accounting Standards, including Financial Reporting

Standard102TheFinancialReportingStandardapplicableintheUKandRepublic

ofIreland(UnitedKingdom

GenerallyAcceptedAccountingPractice).

Opinion



Inouropinion:



 the financial statements give a true and fair view of the state of the Group’s and of the Parent

Company'saffairsasat30June2022andoftheGroup’slossfortheperiodthenended;

 the Group financial statements have been properly prepared

 in accordance with International

FinancialReportingStandardsasadoptedbytheUnitedKingdom;

 theParentCompanyfinancialstatementshavebeenproperlypreparedinaccordancewithUnited

KingdomGenerallyAcceptedAccountingPractice;and

 thefinancialstatementshavebeenpreparedinaccordancewiththerequirementsoftheCompanies

Act2006.

Basisforopinion



We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and

applicable law. Our responsibilities under those standards are further described in the ‘Auditor’s

responsibilitiesfortheauditof  the financialstatements’section ofourreport.Weareindependentofthe

Groupin

accordancewiththeethicalrequirementsthatarerelevanttoourauditofthefinancialstatements

in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in

accordancewiththeserequirements.Webelievethattheauditevidencewehaveobtainedissufficientand

appropriatetoprovide

abasisforouropinion.



Materialuncertaintyrelatingtogoingconcern



Wedrawattentiontonote1inthefinancialstatements,concerningtheDirectors’assessmentoftheGroup

andtheParentCompany’sabilitytocontinueasagoingconcern.



Thedirectorshavepreparedcashflowforecastsforaperiodof

atleast12monthsfromthedateofapproving

these financial statements which indicate that the Group is at an early stage of development and it not

currentlyprofitable.Asstatedinnote1,theseeventsorconditions,alongwiththeothermattersassetforth

innote1and

theGrouphavingnetliabilitiesatthe30June2022of£8,938,520(2021:£8,176,413),indicate

thatamaterialuncertaintyexiststhatmaycastsignificantdoubtontheabilityoftheParentCompanyand

the Group to continue as a going concern. As mentioned in the Strategic Report earlier in these financial



statements,thefinancingfromEHGOSFisconditionedupontheCompanytradingagain.Intheeventthatthe

CompanyisnotrelistedandIconiccannotobtainfinancingtoacquirecompaniesforitsportfolio,thereisa

ICONICLABSPLC

INDEPENDENTAUDITOR’SREPORT

FORTHEYEARENDED30JUNE2022





Page24

risk that it will not generate the revenue and profitability to remain a going concern. Our opinion is not

modifiedinrespectofthismatter.



Giventheuncertaintiesnotedabove,weconsideredgoingconcerntobea‘KeyAuditMatter’andouraudit

responsewasasfollows:



 Reviewof

documentationregardingtheCVAthatwasapprovedandputinplaceon22September2022.

 ReviewoftheFinancingFacilityinplacewithEHGOSF

 ReviewoftheconfirmationoftheCompanyexitingadministrationon29November2022



The Company has not currently prepared forecasts for a period of

 at least 12 months from the date of

approvalofthefinancialstatementsduetotherebeingnoconfirmationoftherelistingatthedateofapproval

andtherefore,weareunabletoreviewtheseatthiscurrenttime.Wehaveconfirmedwithmanagementthat

theyarenotawareof

anyotherfactorsthatmightadverselyimpactontheirassessmentoftheGroup’sand

Company’sabilitytocontinueasagoingconcernotherthanthosealreadynotedinthefinancialstatements.



Overviewofourauditapproach



Materiality



Inplanningandperformingourauditweappliedtheconceptofmateriality.An

itemisconsideredmaterialif

itcouldreasonablybeexpectedtochangetheeconomicdecisionsofauserofthefinancialstatements.We

used the concept of materiality to both focus our testing and to evaluate the impact of misstatements

identified.



Based on our professional judgment, we determined overall materiality

 for the financial statements as a

wholeto be£38,000(2021:£150,000),based on 5%of adjustedgroup loss beforetax. Materiality for the

parentCompanyfinancial statementsas awholewas setat £35,000(2021:£130,000)based on5%ofthe

adjustedlossbeforetax.



Weuseadifferent

levelofmateriality(‘performancemateriality’)todeterminetheextentofourtestingfor

theauditofthefinancialstatements.Performancematerialityissetbasedon theauditmaterialityasadjusted

forthejudgementsmadeastotheentityriskandourevaluationofthespecificriskofeachauditarea

having

regardtotheinternalcontrolenvironment.



Whereconsideredappropriate,performancematerialitymaybereducedtoalowerlevel,suchas,forrelated

partytransactionsanddirectorsrenumeration.



WeagreedwiththeAuditCommitteetoreporttoitallidentifiederrorsinexcessof£3,500(2021:£13,000).

Errorsbelowthat

thresholdwouldalsobereportedtoitif,inouropinionasauditor,disclosurewasrequired

onqualitativegrounds.



Overviewofthescopeofouraudit



TherearetwosignificantcomponentsoftheGroup,locatedandoperatingintheUnitedKingdom.Theaudits

ofIconicLabsPLCandits

UKsubsidiaryundertakingswereconductedfromtheUKbytheengagementteam.

Financialinformationfromothercomponentsnotconsideredtobe individuallysignificantindividuallywas

subjecttolimitedreviewprocedurescarriedoutbytheauditteam.



Extenttowhichtheauditiscapableofdetectingirregularities,includingfraud



Wedesign

ourproceduressoastoobtainsufficientappropriateauditevidencethatthefinancialstatements

arenotmateriallymisstatedduetonon‐compliancewithlawsandregulationsorduetofraudanderror.

ICONICLABSPLC

INDEPENDENTAUDITOR’SREPORT

FORTHEYEARENDED30JUNE2022





Page25

Weare notresponsible forpreventing non‐complianceandcannot beexpected todetect non‐compliance

withalllawsandregulations–thisresponsibilitylieswithmanagementwiththeoversightoftheDirectors

andAuditCommittee.



Based on our understanding of the Group and industry, discussions with management and the

Audit

Committee,weidentifiedfinancialreportingstandards,andCompaniesAct2006ashavingadirecteffecton

theamountsanddisclosuresinthefinancialstatements.



WegainedanunderstandingofthelegalandregulatoryframeworkapplicabletotheGroupandtheindustry

inwhichitoperates,andconsideredtherisksof

actsbytheGroupwhichwerecontrarytoapplicablelaws

and regulations, including fraud. These included but were not limited to compliance with Companies Act

2006,theFCAlistingruleandIFRSadoptedbytheUnitedKingdom.



As part of our discussion with internal engagement team about how and where

 the Group’s financial

statements may be materially misstated due to fraud, we identified an increase risk of fraud in revenue

completeness.



Ourauditproceduresincluded:



 Enquiry of management about the Group’s policies, procedures and related controls regarding

compliancewithlawsandregulationsandifthereareanyknowninstances

ofnon‐compliance;

 Examiningsupportingdocumentsforallmaterialbalances,transactionsanddisclosures;

 ReviewoftheBoardofDirectorsminutes;

 Enquiryofmanagementaboutlitigationsandclaimsandinspectionofrelevantcorrespondence;

 Evaluation of the selection and application of accounting policies related to subjective

measurementsand

complextransactions;

 Analyticalprocedurestoidentifyanyunusualorunexpectedrelationships;

 Testingtheappropriatenessofjournalentriesrecordedinthegeneralledgerandotheradjustments

madeinthepreparationofthefinancialstatements;

 Reviewofaccountingestimatesforbias.



 Owingtotheinherentlimitationsofanaudit,

thereisanunavoidableriskthatsomematerialmisstatements

ofthefinancialstatementsmaynotbedetected,eventhoughtheauditisproperlyplannedandperformed

inaccordancewiththeISAs(UK).



 Thepotentialeffectsofinherentlimitationsareparticularlysignificantinthecaseofmisstatementresulting

fromfraud

becausefraudmayinvolvesophisticatedandcarefullyorganisedschemesdesignedtoconcealit,

includingdeliberatefailuretorecordtransactions,collusionorintentionalmisrepresentationsbeingmadeto

us.



KeyAuditMatters



Keyaudit matters are thosematters that, in our professionaljudgement, were ofmost significance in our

audit of the

 financial statements of the current period and include the most significant assessed risks of

materialmisstatement(whetherornotduetofraud)thatweidentified.Thesemattersincludedthosewhich

hadthegreatesteffecton:theoverallauditstrategy,theallocationofresourcesintheaudit;anddirecting

theefforts

oftheengagementteam.Thesematterswereaddressedinthecontextofourauditofthefinancial

statementsasawhole,and informing ouropinionthereon,andwedo notprovideaseparateopinionon

thesematters.



We have identified above the going concern key audit matter and, given

that the administration of the

CompanypreviouslydetectedallknownliabilitiesandtherehasbeenlimitedtradingwithintheGroupduring

theperiod,nofurtherkeyauditmatterswereidentified.

ICONICLABSPLC

INDEPENDENTAUDITOR’SREPORT

FORTHEYEARENDED30JUNE2022





Page26

Our audit procedures in relation to these matters were designed in the context of our audit opinion as a

whole. They were not designed to enable us to express an opinion on these matters individually and we

expressnosuchopinion.



Otherinformation



The directorsare responsible for the other

 information.The otherinformationcomprises the information

included in the annual report, other than the financial statements and our auditor’s report thereon. Our

opiniononthefinancialstatementsdoesnotcovertheotherinformationand,excepttotheextentotherwise

explicitlystatedinourreport,wedonotexpressany

formofassuranceconclusionthereon.



Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformation

and, in doing so, consider whether the other information is materially inconsistent with the financial

statements,orourknowledgeobtainedintheauditorotherwiseappearstobe

materiallymisstated.Ifwe

identify such material inconsistencies or apparent material misstatements, we are required to determine

whetherthereisamaterialmisstatementinthefinancialstatementsoramaterialmisstatementoftheother

information.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatement

of

thisotherinformation,wearerequiredtoreportthatfact.



Wehavenothingtoreportinthisregard.



OpiniononothermatterprescribedbytheCompaniesAct2006



Inouropinionbasedontheworkundertakeninthecourseofouraudit

 theinformationgiveninthe

strategicreportandthedirectors'reportforthefinancialyearforwhich

thefinancialstatementsarepreparedisconsistentwiththefinancialstatements;and

 thestrategic report and directors’report havebeenpreparedinaccordancewith applicable legal

requirements.



Mattersonwhichwearerequiredtoreportbyexception



InlightoftheknowledgeandunderstandingoftheGroupandtheParentCompanyandtheirenvironment

obtainedinthecourseoftheaudit,wehavenotidentifiedmaterialmisstatementsinthestrategicreportor

thedirectors’report.



Wehavenothingtoreportinrespectofthefollowingmatters

wheretheCompaniesAct2006requiresusto

reporttoyouif,inouropinion:



 adequateaccountingrecordshavenotbeenkeptbytheparentCompany,orreturnsadequatefor

ouraudithavenotbeenreceivedfrombranchesnotvisitedbyus;or

 the parent Company financial statements

are not in agreement with the accounting records and

returns;or

 certaindisclosuresofdirectors'remunerationspecifiedbylawarenotmade;or

 wehavenotreceivedalltheinformationandexplanationswerequireforouraudit.



Responsibilitiesofthedirectorsforthefinancialstatements



Asexplainedmore

fullyinthedirectors’responsibilitiesstatementsetoutonpages21and22thedirectors

areresponsibleforthepreparationofthefinancialstatementsandforbeingsatisfiedthattheygiveatrue

andfairview,andforsuchinternalcontrolasthedirectorsdetermineisnecessarytoenablethe

preparation

offinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.



In preparing the financial statements, the directors are responsible for assessing the Group’s and Parent

Company’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcern

ICONICLABSPLC

INDEPENDENTAUDITOR’SREPORT

FORTHEYEARENDED30JUNE2022





Page27

andusingthegoingconcernbasisofaccountingunlessthedirectorseitherintendtoliquidatethegroupor

theParentCompanyortoceaseoperations,orhavenorealisticalternativebuttodoso.



Auditor’sresponsibilitiesfortheauditofthefinancialstatements



Ourobjectives areto obtainreasonable assurance

about whetherthe financialstatementsasa wholeare

freefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludes

ouropinion.Reasonableassuranceisahighlevelofassurancebutisnotaguaranteethatanauditconducted

inaccordancewithISAs

(UK)willalwaysdetectamaterialmisstatementwhenitexists.



Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individually orintheaggregate,

theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthese

financialstatements.



Afurtherdescription

ofourresponsibilitiesfortheauditofthefinancialstatementsislocatedontheFinancial

Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our

auditor’sreport.



Independence



WewereappointedbytheAuditCommitteeon19October2022andtherefore,ourperiodofuninterrupted

engagement is less

than one year covering the financial year ending 30 June 2021. We have fulfilled our

ethical responsibilities under, and we remain independent of the Group in accordance with, UK ethical

requirementsincludingtheFRSEthicalStandardasappliedtolistedpublicinterestentities.



The non‐audit services prohibited by the

FRC’s Ethical Standard were not provided to the Group  or the

CompanyandweremainindependentoftheGroupandtheCompanyinconductionouraudit.



Useofourreport



ThisreportismadesolelytotheCompany'smembers,asabody,inaccordancewithChapter3ofPart16

of

the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's

membersthosematterswearerequiredtostatetotheminanauditor'sreportandfornootherpurpose.To

the fullest extent permitted by law, we do not accept or assume

 responsibility to anyone other than the

CompanyandtheCompany'smembersasabody,forourauditwork,forthisreport,orfortheopinionswe

haveformed.



LorraineCurtisBFPACAFCCA(SeniorStatutoryAuditor)

forandonbehalfof

NordensAuditLimited

StatutoryAuditor

Essex



Date:27December2022



ICONICLABSPLC

CONSOLIDATEDSTATEMENTOFCOMPREHENSIVEINCOME

FORTHEYEARENDED30JUNE2022





Page28



  Notes Yearended

30June

2022

£

 Yearended30

June

2021

£

Continuingoperations    

Revenue 26,823  509,171

 

Grossprofit  26,823  509,171

 

Administrativeexpenses 3 (203,930)  (3,577,5 95)

DirectcostsinconnectionwithEHGOFfinancingfacility 3 (585,000)  (70,000)

Otheroperatingincome‐  37,945

 

Operatingloss(762,107)  (3,100,4 79)

 

Financecosts  6 ‐  (4 ,593,154)

Lossbeforetaxation  (762,107)  (7,693 ,633)

 

Taxation 7 ‐ ‐

Lossfortheperiodfromcontinuingoperations(762,107)  (7,693,6 33)

 

Lossfortheperiodfromdiscontinuedoperations 5 ‐  (3,673)

 

Lossfortheperiod  (762,107)  (7,697,3 06)

  

Totalcomprehensivelossfortheperiod(762,107)  (7,697 ,306)



Lossperordinaryshare 8  

Basicanddiluted

‐ fromcontinuingoperations

‐ fromdiscontinuedoperations(pleasecalculate)

 

(0.00)





(0.00)

 

Theloss for the yearand total comprehensiveloss for theyear are whollyattributableto the equityholders of the

parent.

ICONIC LABS PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2022

30 June

2022

2021

Notes

Assets

Non

‐

current assets

Intangible assets

Total non‐current assets

Current Assets

Trade and other receivables

‐ 103,126

Cash and cash equivalents

50,929

154,055

Total assets

154,056

Equity

Share capital

4,450,50 6

4,450,506

Share premium

7,900,77 8

7,900,778

Retained deficit

(21,289,8 04)

(20,527,6 97)

(8,938 ,520)

(8,176,413)

Liabilities

Current liabilities

Trade and other payables

6,523,52 6

5,881,469

Loans and borrowings

2,415,00 0

2,415,000

Provisions

‐

34,000

8,938,52 6

8,330,469

Total liabilities

8,938,52 6

8,330,469

Total equity and liabilities

154,056

The financial statements of Iconic Labs plc were approved by the Board and authorised for issue on 27 December 2022. They

were signed on its behalf by:

………………………………………

Brad Taylor

Director

Page 29

ICONICLABSPLC

CONSOLIDATEDSTATEMENTOFCHANGESINEQUITY

FORTHEYEARENDED30JUNE2022





Page30

 



Share

capital

£



Share

premium

£



Retained

deficit

£



Total

Equity

£

 

Balanceat30June2020 4,138,936 5,578,789 (12,830,391) (3,112,666)

 

Lossfortheyear ‐

‐ (7,697,306) (7,697,306)

Totalcomprehensivelossfortheyear

‐



‐



(7,697,306)



(7,697,306)

Transactionswithowners:



 



Issueofshares

Costofplacings

311,570

‐

2,406,223

(84,234)

‐

‐

2,717,793

(84,234)

Totalcontributionbyanddistributiontoowners



311,570



2,321,989



‐



2,633,559





Balanceat30June2021 4,450,506

7,900,778 (20,527,697) (8,176,413)

 



 



Lossfortheyear‐

‐ (762,107) (762,107)

Totalcomprehensivelossfortheyear

‐



‐



(762,107)



(762,107)

Transactionswithowners:







Balanceat30June2022

4,450,506

7,900,778 (21,289,804) (8,938,520)



ICONICLABSPLC

CONSOLIDATEDSTATEMENTOFCASHFLOWS

FORTHEYEARENDED30JUNE2022





Page31

 

Notes

Yearended

30June

2022

£

Yearended

30June

2021

£

Cashflowsfromoperatingactivities 

   

Totalcomprehensivelossfortheperiod

 (762,107)  (7,697,3 06)

Lossfromdiscontinuedoperations

5 ‐ 3, 673

Lossfromsaleoftangibleassets

Impairmentofintangibleassets



 ‐ 20,086

21,599

Depreciation  

3 ‐ 2, 504

Finance

costs

6 ‐ 4,593,154



(762,107) (3,0 56,290)



  

Decrease/(increase)intradeandotherreceivables

 103,126 33,009

(Decrease)/increaseintradeandotherpayables

(Decrease)/increaseinprovisions



 642,057

(34,000)

 4,181,675

‐

Operatingcashflowsusedbycontinuingactivities

 (50,924) 1,158,394

Operatingcashflowsgeneratedfrom/(usedby)discontinuedoperations

 ‐ (3,673)

Netcashusedinoperatingactivities

 (50,924) 1,154,721



   

 

   

Cashflowsfromfinancingactivities 

   

Interestpaid

 6 ‐(4,593,154)

Repaymentofleases

  ‐ (31,981)

Repaymentofloanfromdirector

  ‐ (12,613)

Issueofsharecapital

  ‐ 2,717,793

Costofissuingsharecapital

  ‐ (84,234)

Issueofconvertibleloannotes

  ‐ 720,000

Financingcashflowsfromcontinuingactivities 

  ‐(1,284,1 89)

Financingcashflowsusedbydiscontinuedoperations 

  ‐ ‐

Netcashflowsfromfinancingactivities 

  ‐(1,284,1 89)

 

   

Netincrease/(decrease)incashandcashequivalents 

  (50,924) (12 9,468)

 

   



Cashandcashequivalentsatbeginningofperiod



  

50,929



180,397

Cashandcashequivalentsatperiodend

 12 5 50,929

ICONICLABSPLC

COMPANYSTATEMENTOFFINANCIALPOSITION

FORTHEYEARENDED30JUNE2022





Page32





The Company’s loss and total comprehensive loss for the year ended 30 June 2022 was £1,403,138 (30 June 2021:

£7,361,611)



The financial statements of Iconic Labs plc,company number 10197256, were approvedby the Board and authorised for

issueon27December2022.Theyweresignedonitsbehalfby:



…………………………………………

BradTaylor

Director

 

Notes

30June

2022

£

30June

2021

£

   

Non‐currentassets   

Investments

 10 2  2

Non‐currentassets  2  2



Currentassets

  

Tradeandotherreceivables 11 ‐  400,795

Cashandcashequivalents 12 ‐  838

  ‐  401,633

   

Totalassets  2 401,635

 

Equity   

Sharecapital 13 4,450,506  4,450,506

Sharepremium 14 7,900,778  7,900,778

Retaineddeficit 14(21,289,344)  (19,886,206)

 (8,938,060)  (7,534,922)

   

Currentliabilities   

Tradeandotherpayables 15 6,523,062  5,521,557

Loansandborrowings 16 2,415,000  2,415,000

  8,938,062  7,936,557

Totalliabilities  8,938,062  7,936,557

 

Totalequityandliabilities  2 401,635

ICONICLABSPLC

COMPANYSTATEMENTOFCHANGESINEQUITY

FORTHEYEARENDED30JUNE2022





Page33

 

Share

capital

£



Share

premium

£



Retained

deficit

£



Total

equity

£



Balanceat30June2020 4,138,936 5,578,789 (12,524,595) (2,806,870)



Lossfortheperiod‐‐(7,361,611) (7,361,611)

Totalcomprehensivelossforperiod‐‐(7,361,611) (7,361,611)

Transactionswithowners

Issueofshares 311,570 2,406,223‐2,717,793

Costofplacings‐(84,234)‐(84,234)

Totalcontributionsbyanddistributionsto

owners 311,570 2,321,989‐2,633,559

  

Balanceat30June2021 4,450,506 7,900,778 (19,886,206) (7,534,922)

  

Lossfortheyear‐‐(1,403,138) (1,403,138)

Totalcomprehensivelossforyear‐‐(1,403,138) (1,403,138)

  

Balanceat30June2022 4,450,506 7,900,778 (21,289,344) (8,938,060)

 



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2022





Page34

1. AccountingPolicies

Basisofpreparation

ThesefinancialstatementshavebeenpreparedinaccordancewithInternationalFinancialReportingStandards

asadoptedbytheUnitedKingdom(“adoptedIFRS”)andwiththosepartsoftheCompaniesAct2006applicable

tocompaniespreparingtheiraccountsunderadoptedIFRS.

These consolidated financialstatements are presented

 in Pounds Sterling (‘GBP’), which is considered by the

directorstobethefunctionalandpresentationcurrency.

The Company’s individual statement of comprehensive income has been omitted from the Group’s annual

financial statements having taken advantage of the exemption not to disclose under Section 408(3) of the

CompaniesAct

2006.

Goingconcern

TheDirectorsconsideritisappropriatetopreparetheIconicfinancialstatementsonthebasisthatthattheyare

able to continue to operate for a period of at least 12 months from the date of approving these financial

statements.

As noted in the Strategic Report on pages

 7‐11 when making this assessment the Directors have prepared

forecastswhichconsidertheexpectedlevelofexpenditureoverthecourseofthereviewperiodtogetherwith

theanticipatedrevenuesarisingfromthenewbusinessandacquisitionscompletedshortlyaftertheperiodend.

Keytothecompilationoftheforecasts

centraltotheDirectors’assessmentofgoingconcernarethefollowing

factors:

 The company is at an early stage of development and is not currently profitable. Despite strong

confidenceinitsbusinessplanandforecasts,theDirectorsrecognisethereisariskthatitmayrequire

morefundingbutnot

beabletofindagreementwithafundingpartner.

 The Company has only recently exited administration and the Board is working diligently to ensure

compliancewiththetermsoftheCVAandalsotogettheCompanyrelistedassoonaspossible.

TheCompanyhas,likemost,beenaffected

bytheCOVID‐19pandemicandhaslostsomerevenuehoweverthe

Companyisconfidentthatit’srisktothepandemichasbeenmitigated.TheCompanyhascompletedfundraising

whichwillreducetherelianceoftheCompanyonrevenue.TheDirectorsremainsatisfiedthattheassumptions

theyhaveusedinthe

forecaststoassessthatIconicisagoingconcern.

Basisofconsolidation

TheGroupfinancialstatementsconsolidatethoseoftheparentcompanyandallofitssubsidiaries.Subsidiaries

areentitiescontrolledbytheGroup.Theparentcompanycontrolsasubsidiaryifithaspowerovertheinvestee

to significantly direct

the activities, exposure, or rights, to variable returns from its involvement with the

investee,andtheabilitytouseitspowerovertheinvesteetoaffecttheamountoftheinvestors’returns.The

financial statements of subsidiaries are included in the consolidated financial statements from the date that

controlcommencesuntil

thedatethatcontrolceases.



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS(Continued)

FORTHEYEARENDED30JUNE2022





Page35

1. AccountingPolicies(continued)

Basisofconsolidation

Theresultsofsubsidiariesacquiredordisposedintheperiodareincludedintheconsolidatedincomestatement

from the effective date of acquisition or up to the effective date of disposal, as appropriate. All intra‐group

transactions,balances,incomeandexpensesareeliminatedon

consolidation.

Theresultsandnetassetsofsubsidiarieswhoseaccountsaredenominatedinforeigncurrenciesareretranslated

intoSterlingataverageratesandyear‐endratesrespectively.

WheretheGrouphasthepowertoparticipatein(butnotcontrol)thefinancialandoperatingpolicydecisionsof

anotherentity,itis

classifiedasanassociate.Associatesareinitiallyrecognisedintheconsolidatedstatementof

financialpositionatcost.Subsequentlyassociatesareaccountedforusingtheequitymethod,wheretheGroup's

shareofpost‐acquisitionprofitsandlossesandothercomprehensiveincomeisrecognisedintheconsolidated

statement of profit and loss and

 other comprehensive income (except for losses in excess of the Group's

investmentintheassociateunlessthereisanobligationtomakegoodthoselosses).

Businesscombinations

The Group applies the acquisition method of accounting for business combinations. The consideration

transferredbytheGrouptoobtaincontrolofasubsidiary

iscalculatedasthesumoftheacquisitiondatefair

valuesofassetstransferred,liabilitiesincurredandequityinterestsissuedbytheGroup.Acquisitioncostsare

expensedasincurred.

Revenuerecognition

RevenuerepresentstheamountofconsiderationtowhichtheGroupexpectstobeentitledinexchangeforthe

provisionof

it'sservicestotheclient,netofdiscountsandsalestaxes.



Fortheyearended30June2022,theGroupusedthefive‐stepmodelasprescribedunderIFRS15ontheGroup's

revenue transaction. This included the identification of the contract, identification of the performance

obligations, determination of the transaction

price, allocation of the transaction price to the performance

obligationsandrecognitionofrevenue.ThepointofrecognitionariseswhentheGroupsatisfiestheperformance

obligationbytransferringcontrolofapromisedservicetothecustomerwhichcouldoccurovertimeoratapoint

intime.Provisionismadefor

allforeseeablelosseswheretheCompanybelievesthatacontractwilldeemtobe

unprofitable,oraclientfailstoremuneratetheCompanyforservicesprovided.

Revenuethathasbeenbilledtotheclient,butwhichisyettobepaidisaccruedwithintradereceivables.



Discontinuedoperations

DiscontinuedoperationsrepresentmajoroperationsofthebusinessthattheGrouphavedecidedtoterminate.

The post‐tax profit or loss of the discontinued operations is presented as a single line on the face of the

consolidatedincomestatement.Thepresentationofdiscontinuedoperationswithinpriorperiodsisrestated

to

reflectconsistentclassificationofdiscontinuedoperationsacrossallperiodspresented.

ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS(Continued)

FORTHEYEARENDED30JUNE2022

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Page36

1. AccountingPolicies(continued)

Foreigncurrency

Transactions in foreign currencies are translated to the respective functional currencies of Group entities at

exchangeratesatthedatesofthetransactions.Monetaryassetsandliabilitiesdenominatedinforeigncurrencies

atthereportingdateareretranslatedtothefunctionalcurrencyattheexchangerate

atthatdate.

Non‐monetaryitemsinaforeigncurrencythataremeasuredbasedonhistoricalcostaretranslatedusingthe

exchangerateatthedateofthetransaction.

Foreigncurrencydifferencesarisingonretranslationarerecognisedinthestatementofcomprehensiveincome.

Retirementbenefitcosts

TheGroupoperatesdefined

contributionretirementbenefitschemes.Paymentstotheseschemesarecharged

asanexpenseintheperiodtowhichtheyrelate.Theassetsoftheschemeareheldseparatelyfromthoseofthe

Groupinindependentlyadministeredfunds.

 Taxation

Thetaxexpenserepresentsthesumofthetaxcurrentlypayableand

deferredtax.Thetaxcurrentlypayableis

basedontaxableprofitfortheyear.Taxableprofitdiffersfromnetprofitasreportedintheincomestatement

because it excludes items of income or expense that are taxable or deductible in other years and it further

excludesitemsthatarenevertaxable

ordeductible.

Deferredtaxisthetaxexpectedtobepayableorrecoverableontemporarydifferencesbetweenthecarrying

amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the

computation of taxable profit, and is accounted for using the balance sheet liability method.

Deferred tax

liabilitiesaregenerallyrecognisedforalltaxabletemporarydifferencesanddeferredtaxassetsarerecognised

to the extent that it is probable that taxable profits will be available against which deductible temporary

differencescanbeutilised.Suchassetsandliabilitiesarenotrecognisedifthetemporarydifferencearisesfrom



goodwillorfromtheinitialrecognition(otherthaninabusinesscombination)ofotherassetsandliabilitiesina

transactionthataffectsneitherthetaxprofitnortheaccountingprofit.

Deferredtax liabilitiesarerecognisedfortaxabletemporary differencesarisingon investments insubsidiaries

and associates, and interests in joint

ventures, except where the Group is able to control the reversal of the

temporarydifferenceanditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.

Thecarryingamountofdeferredtaxassetsisreviewedateachreportingdateandreducedtotheextentthatit

 no longer probable that sufficient taxable profits will be available to allow all or part of  the asset to be

recovered.

Deferredtaxismeasuredonanundiscountedbasisusingthetaxratesthatareexpectedtoapplyintheperiod

whentheliabilityissettledortheassetis

realised.Deferredtaxischargedorcreditedintheincomestatement,

exceptwhenitrelatestoitemschargedorcrediteddirectlytoequity,inwhichcasethedeferredtaxisalsodealt

withinequity.



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS(Continued)

FORTHEYEARENDED30JUNE2022

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1. AccountingPolicies(continued)

Intangiblefixedassets

Intangibleassetscomprisecapitalisedcomputersoftwarewhichareinitiallyrecognisedatcost.

Amortisationis providedsoastowriteofftheircarrying valueovertheirexpectedusefuleconomiclives. Itis

providedatthefollowingrates:

Computersoftware‐ 33%straightlinebasis

Intangibleassets

alsocompriseintellectualpropertywhichisinitiallymeasuredatcost.Theusefuleconomiclife

of the asset is considered to be such that any amortisation charge would be immaterial to the financial

statements.Thedirectorshavethereforedecidedthatanannualimpairmentreviewratherthanansystematic

amortisationismore

appropriateforthisasset.

Impairmentofnon‐currentassets

AteachreportingdatetheGroupreviewsthecarryingamountsofitsnon‐currentassetstodeterminewhether

there is any indication that those assets have suffered an impairment loss.If any such indication exists, the

recoverableamountoftheassetis

estimatedinordertodeterminetheextentoftheimpairmentloss(ifany).

Iftherecoverableamountofan assetisestimatedtobelessthanitscarryingamount,thecarryingamountof

theassetisreducedtoitsrecoverableamount.Animpairmentlossisrecognisedasanexpenseimmediately,

unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a

revaluationdecrease.

Financialassets

FinancialassetsarerecognisedwhentheGroupbecomesapartytothecontractualprovisionsofthefinancial

asset.

Financialassetsarederecognisedwhenthecontractualrightsto

thecashflowsfromthefinancialassetsexpire,

orwhenthefinancialassetandsubstantiallyalloftherisksandrewardsaretransferred.

The financial assets of the Group are initially measured at fair value adjusted for transaction costs (where

applicable).

Financialassetsareclassifiedintothefollowingcategories:

‐

Amortisedcost

‐ Fairvaluethroughprofitorloss(FVTPL)

‐ Fairvaluethroughothercomprehensiveincome(FVOCI)

Theclassificationisdeterminedbyboth:

‐ TheGroup’sbusinessmodelformanagingthefinancialasset

‐ Thecontractualcashflowcharacteristicsofthefinancialasset

Allincome andexpenses relating to financial

assets that are recognisedin profit orlossare presented within

financecostsandfinanceincome.



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS(Continued)

FORTHEYEARENDED30JUNE2022

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1. AccountingPolicies(continued)

Financialassets(continued)

Financial assets are measured at amortised cost if the assets meet the following conditions (and are not

designatedasFVTPL):

‐ They are held within a business model whose objective is to hold the financial assets and collect its

contractualcashflows

‐ Thecontractual

termsofthefinancialassetsgiverisetocashflowsthataresolelypaymentsofprincipal

andinterestontheprincipalamountoutstanding

Afterinitialrecognition,thesearemeasuredatamortisedcostusingtheeffectiveinterestmethod.Discounting

isomittedwhereitseffectisimmaterial.TheGroup’scashandcash

equivalents,tradeandotherreceivablesfall

intothiscategory.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference

betweenitscarryingamountandthepresentvalueoftheestimatedfuturecashflowsdiscountedattheasset’s

originaleffectiveinterestrate.Lossesare

recognisedinprofitorlossandreflectedinanallowanceagainsttrade

andother receivables.When an event occurring after the impairmentwas recognisedcauses the amount of

impairmentlosstodecrease,thedecreaseinimpairmentlossisreversedthroughprofitorloss.

Tradeandotherreceivables

Thegroupmakes

useofasimplifiedapproa chinaccountingfortradeandotherreceivablesandrecordstheloss

allowance as lifetime expected credit losses.These are the expected shortfalls in contractual cash flows,

consideringthepotentialfordefaultatanypointduringthelifeofthefinancialinstrument.Incalculating,the

Group uses

 its historical experience, external indicators and forward‐looking information to calculate the

expectedcreditlossesusingaprovisionmatrix.



TheGroupassessesimpairmentoftradeandotherreceivablesonacollectivebasis.

Cashandcashequivalents

Cash and cash equivalents comprise cash balances and call deposits. These are initially and subsequently

recordedatfairvalue.

Financialliabilities

TheGroup’sprincipalfinancialliabilitiesincludetradeandotherpayablesandconvertibledebt

noneofwhich

wouldbeclassifiedasfairvaluethroughprofitorloss.

Therefore,thesefinancialliabilitiesareclassifiedasfinancialliabilitiesatamortisedcost,asdefinedbelow:

Otherfinancialliabilitiesincludethefollowingitems:

 Borrowingsareinitiallyrecognisedatfairvaluenetofanytransactioncostsdirectlyattributable

tothe

issueoftheinstrument.Suchinterest‐bearingliabilitiesaresubsequentlymeasuredatamortisedcost

using the effective interest method, which ensures that any interest expense over the period to

repayment is at a constant rate on the balance of the liability carried in the statement of financial

position. Interest

 expense in this context includes initial transaction costs and premium payable on

redemption,aswellasanyinterestorcouponpayablewhiletheliabilityisoutstanding.

ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS(Continued)

FORTHEYEARENDED30JUNE2022

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Page39

1. AccountingPolicies(continued)

Financialliabilities(continued)

 Tradepayablesandothershort‐termmonetaryliabilities,whichareiniti allyrecognisedatfairvalueand

subsequentlycarriedatamortisedcostusingtheeffectiveinterestmethod.

Convertibleloannotes

ConvertibleloannotesissuedbytheGroupcompriseloannotesthatcanbeconverted

toordinaryshares at the

optionoftheholder.

Theliabilitycomponentoftheconvertibleloannotesisrecognisedonthedateofinceptionandisdetermined

usingamarketinterestrateforanequivalentnon‐convertibleinstrument.Theequityelementisrecognisedas

thedifferencebetweenthevalueof

thefinancialinstrumentasawholeandthevalueoftheliabilitycomponent.

Anydirectlyattributabletransactioncostsareallocatedtotheequityandliabilitycomponentsinproportionto

theirinitialcarryingamounts.

Subsequently,theliabilitycomponentofacompoundfinancialinstrumentismeasuredatamortisedcostusing

theeffectiveinterest

ratemethod.

Leasedassets

ThecompanyappliesIFRS16Leases.Accordinglyleasesareallaccountedforinthesamemanner:

 A right of use asset and lease liability is recognised on the statement of financial position, initially

measuredatthepresentvalueoffutureleasepayments;

 Depreciationof

right‐of‐useassetsandinterestonleaseliabilitiesare recognisedinthestatementof

comprehensiveincome;

 Thetotalamountofcashpaidisrecognisedinthestatementofcashflows,splitbetweenpaymentsof

principal(withinfinancingactivities)andinterest(alsowithinfinancingactivities)

Theinitialmeasurementofthe

rightofuseassetandleaseliabilitytakesintoaccountthevalueofleaseincentives

suchasrentfreeperiods.

Thecostsofleasesoflowvalueitemsandthosewithashorttermatinceptionarerecognisedasincurred.

Sharecapital

Thegroup’sordinarysharesareclassifiedasequity

instruments.

Newstandardsadopted

From1January2021thecompanyhasappliedUK‐adoptedIAS.Atthedateofapplication,theUK‐adoptedIAS

andEU‐adoptedIFRSwerethesame.

Thefollowingaccountingpronouncementsandstandardsbecameeffectivefrom1January2021andhavebeen

adoptedbutdidnothave

asignificantimpactontheGroup’sfinancialresultsorposition:

 Covid‐19relatedrentconcessionsbeyond30June2021(amendmentstoIFRS16)

 InterestRateBenchmarkReformPhase2(AmendmentstoIFRS9,IAS39,IFRS7,IFRS4andIFRS16)



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS(Continued)

FORTHEYEARENDED30JUNE2022





Page40

1. AccountingPolicies(continued)

Newstandards,interpretationsandamendmentsnotyeteffective

At the date of authorisation of these financial statements, the company has not early adopted the following

amendmentstoStandardsandInterpretationsthathavebeenissuedbutarenotyeteffectiveandhavenotbeen

adoptedearlybythe

Group.

StandardorInterpretation

 NarrowscopeamendmentstoIFRS3,IAS16andIAS37(effective1January2022)

 AnnualimprovementstoIFRSStandards2018–2020(effective1January2022)

 AmendmentstoIAS1:ClassificationofLiabilitiesasCurrentorNon‐current(effective1January2023)

 Amendments

toIAS 1andIFRSPracticeStatement2:DisclosureofAccountingPoliciesandclassification

ofliabilitiesasCurrentorNon‐current(effective1January2023)

 AmendmentstoIAS8:DefinitionofAccountingEstimates(effective1January2023)

 AmendmentstoIAS 12:DeferredTaxRelatedtoAssetsandLiabilitiesarising

fromaSingleTransaction

(effective1January2023)

As yet, none of these have been endorsed for use in the UK and will not be adopted until such time as

endorsementisconfirmed.Thedirectorsdonotexpectanymaterialimpactasaresultofadoptingthestandards

andamendments

listedaboveinthefinancialyeartheybecomeeffective.

2. CriticalAccountingEstimatesandJudgements

The group makes certain estimates and assumptions regarding the future. Estimates and judgements are

continuallyevaluatedbasedonhistoricalexperienceandotherfactors,includingexpectationsoffutureevents

thatare believed tobe reasonableunder the

circumstances. Inthe future, actualexperience maydiffer from

theseestimatesandassumptions.Significantmanagementjudgementsareasfollows:

LegacyIssues

 DuetothechangeintheBoard,keymanagementandoperationsoftheGroupthattookplaceinMarch

2021,itis possiblethat  there are unrecordedliabilities relatingto thenowdiscontinuedactivities about

whichtheBoardareunaware.TheBoardhaveundertaken,totheextentpossible,athorough

reviewofthe

creditorpositionoftheParentCompanyandtheGroup,withacorefocusonthelegacybusinessoperations.

NotwithstandingtheBoard’sassessment,thereisaresidualriskunforeseenliabilitiesmayarise.However,

duetothepublicityaroundthenewbusiness,shuttingdowntheoldoneanddrawing

downontheEHGOS

facility,anumberofclaimsweremadeagainstthecompany.Sincetheperiodend,noadditionalcreditors

have made a claim against the Group or the Parent Company. While it is important to consider these

liabilitiesintheseaccountstheBoardhavehowevermadeajudgment

thattheriskofunrecordedactualor

contingentliabilitiesisnowlow.



 TheGroup’sformerBoardunderthroughitsCellplansubsidiarywaspromotingbespokestemcellmedical

insuranceandlaunchedawebsitetomarkettheproduct.Afterdueenquiry,thenewBoardisnotaware

thatanysuchpolicies

wereissued.Theredoeshoweverremainaresidualriskthatpoliciesmayhavebeen

issued.Theboardconsiderthattheincidenceandfinancialimpactisnowlow.

ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS(Continued)

FORTHEYEARENDED30JUNE2022





Page41

3. LossfromOperations

 Yearended

30June

2022

£

Yearended

30June

2021

£

Thelossfortheperiodisstatedaftercharging:

Depreciation ‐ 2,504

Auditorsremuneration–auditservices 50,000 50,000



Expensesbynature: £ £

Legalandprofessionalfees (7,102) 911,787

Consultancyfees 255,254 1,053,856

Othersuppliesandexternalservices 86,027 444,473

Staffcosts ‐ 1,164,975

Totaloperatingexpenses 334,179 3,575,091

Depreciation,amortisationandimpairmentofassets

Writingdownofsubsidiaryundertakings

‐

(130,249)

2,504

‐

Totaladministrativeexpenses 203,930 3,577,595

DirectcostsincurredinconnectionwithEHGOFfinancing

facility

585,000 70,000

Otherpenalties ‐ 4,593,154

 788,930 8,240,749

4. StaffCosts



Yearended

30June

2022

£



Yearended

30June

2021

£

Staffcosts(includingdirectors)comprise:

Wagesandsalaries‐1,128,545

Definedcontributionpensioncost‐(150)

Socialsecuritycontributionsandsimilartaxes‐36,580

 ‐ 1,164,975

  

EmployeeNumbers  

Theaveragenumberofstaffemployedbythegroupduringtheperiodamountedto:

Generalandadministration 4 3



4 3

Keymanagementpersonnelcompensation

Key management personnel are those persons having authority and responsibility for planning, directing and

controllingtheactivities,andarethedirectorsofthecompany.

RemunerationofthedirectorsandhighestpaiddirectorisshownintheRemunerationCommitteeReportonpage18.

ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS(Continued)

FORTHEYEARENDED30JUNE2022





Page42



5. Discontinuedoperations

InMarch2019theBoardmadethedecisiontodiscontinuethestemcellresearchoperations.Theoperatingloss

untilthedateofdiscontinuationoftheoperationsissummarisedasfollows:



 

Yearended

30June

2022



Yearended

30June

2021

 £ £

Administrativeexpenses–

writebackofcreditorbalances‐(3,673)

Operatingprofit/(loss) ‐ (3,673)

 

Taxation ‐ ‐

Profit/(loss)fortheperiod ‐ (3,673)

 

Othercomprehensiveexpense‐‐

Totalcomprehensiveprofit/(loss)fortheperiod ‐ (3,673)

 

6. FinanceCosts

 Yearended

30June2022

£

Yearended

30June2021

£

Financecosts 

Otherloanpenalties‐4,592,522

Interestonleases‐632

Totalfinanceexpense ‐ 4,593,154



7. Taxation

 Yearended

30June2022

£

Yearended

30June2021

£

 

Currenttax ‐ ‐

Totalcurrenttax ‐ ‐



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS(Continued)

FORTHEYEARENDED30JUNE2022





Page43

7. Taxation(continued)

Thereasonforthedifferencebetweentheactualtaxchargefortheperiodandthestandardrateofcorporation

taxintheUnitedKingdomappliedtolossesfortheperiodareasfollows:



Yearended

30June2022

£



Yearended

30June2021

£

Lossbefore

taxation



(762,107) (7,697,306)

Taxusingtheparentcompany’sdomestictaxrateof19%(2021:19%) (144,800) (1,462,488)



Effectsof:



Unrelievedtaxlossesandotherdeductionsarisingintheperiod 144,800 1,462,488

Expensesnotdeductiblefortaxationpurposes‐‐

Totaltaxchargedintheincomestatement‐‐

Deferredtaxationattributabletolossesarisingintheyearandforlossescarriedforwardhasnotbeenrecognisedin

theseaccountsduetotheuncertaintyoverwhetherthiswillberecovered.



8. Losspershare



Yearended

30June2022

£



Yearended

30June2021

£

Numerator 

Lossfortheperiod (762,107) (7,697,306)

Denominator 

WeightedaveragenumberofordinarysharesusedinbasicEPS 37,405,248,039 22,750,589,218

Basicanddilutedlosspershare

‐continuingoperations

‐discontinuedoperations



(0.00)



(0.00)



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS(Continued)

FORTHEYEARENDED30JUNE2022





Page44

9. IntangibleAssets

Group

 Intellectual

Property

£

Computer

software

£



Total

£

Cost    

Balanceat30June202021,600 139,106 160,706

Disposals‐(139,106) (139,106)

Balanceat30June2021and30June2022  21,600‐21,600



Amortisation    

Balanceat30June2020‐139,106 139,106

Impairment

Eliminatedondisposal

21,599

‐

(139,106)

21,599

(139,106)

Balanceat30June2021and30June2022  21,599‐21,599

    

Carryingamounts    

Balanceat30June2022  1‐1

Balanceat30June20211‐1





10. Investments



Company

 30June

2022

£

30June

2021

£

Investmentsinsubsidiaries 2 2

 2 2





ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS(Continued)

FORTHEYEARENDED30JUNE2022





Page45



10.Investments(continued)

Subsidiariesasat30June2022:



Entity



Registeredofficeaddress

Countryof

incorporation

Natureof

business



Notes

WideCellsInternational

Limited

7BellYard,London,WC2A

2JR

United

Kingdom

Holding

company

(c)

WideCellsLimited 3FieldCourt,Gray’sInn,

London,WC1R5EF

United

Kingdom

Inliquidation (a)

WideCellsPortugalSA RuaDaCasaBranca,97

Coimbra3030‐109,Portugal

Portugal Trading

company

(a)

WideCellsEspanaSL CalleCastillodeFuensaldana,

4,28232LasRozas,Madrid

Spain Inliquidation (a)

CellPlanLimited 7Bell

Yard,London,WC2A

2JR

United

Kingdom

Dormant

company

(a)

CellPlanInternationalLda EdificioTowerPlazaRotunda

Eng,EdgarCardoso,no.23,

11F,4400‐676VilaNovade

Gaia,Portugal



Portugal Dormant

company

(b)

IconicLabsIPLimited 7BellYard,London,WC2A

2JR

United

Kingdom

Trading

company

(c)

NuucoMediaLimited 7BellYard,London,WC2A

2JR

United

Kingdom

Trading

company

(c)



Notes: (a)100%ownedbyWideCellsInternationalLimited (b)100%ownedbyCellPlanLimited

 (c)100%

ownedbyIconicLabsplc



During the 2022 financial year, the following subsidiary undertakings and associated undertakings were

dissolved:

‐ IconicLabsUKLimited(subsidiary);

‐ WideacademyLimited(subsidiary);

‐ CoalitionMediaLimited(subsidiary);and

‐ MediumChannelMediaLimited(associate)



InSeptember2019,WidecellsLimitedwasplacedliquidation.The

companywasdissolvedinAugust2022.

InAugust2022,IconicLabsIPLimitedwasdissolved.

InNovember2019,WidecellsEspanawasplacedintoliquidation.



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS(Continued)

FORTHEYEARENDED30JUNE2022





Page46

11. Tradeandotherreceivables



Group

 30June

2022

£

30June

2021

£

Tradereceivables‐100,000

Otherreceivables‐3,126

Totalreceivables ‐ 103,126



Tradeandotherreceivables

Tradeandotherreceivablesdonotcontainanyimpairedassets.Thegroupdoesnotholdanycollateralassecurityand

themaximumexposuretocreditriskattheconsolidatedstatementoffinancialpositiondateisthefairvalueofeach

classofreceivable.

Bookvaluesapproximate

tofairvalueat30June2022and30June2021.

Company

 30June

2022

£

30June

2021

£

Amountsduefromgroupcompanies‐398,185

Otherreceivables‐2,610

 ‐ 400,795



12. Cashandcashequivalents

 Group

 30June

2022

£

30June

2021

£

Cashatbankavailableondemand 5 50,929

Bankoverdraft ‐ ‐

Totalcashandcashequivalents 5 50,929

Company

 30June

2022

£

30June

2021

£

Cashatbankavailableondemand‐838

Totalcashandcashequivalents‐838



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS(Continued)

FORTHEYEARENDED30JUNE2022





Page47

13. ShareCapital

 30June2022 30June2021

 Number £ Number £

Authorised, allotted and fully paid –

classifiedasequity



Ordinarysharesof£0.00001each 37,405,248,039 374,052 37,405,248,039 374,052

Deferredsharesof£0.00249each 1,637,129,905 4,076,454 1,637,129,905 4,076,454

Total 39,042,377,944 4,450,506 39,042,377,944 4,450,506



At30June2021and30June2022,thecompanyhad37,405,248,039Ordinarysharesof£0.00001inissue.

InaccordancewiththeCompaniesAct2006,thecompanyhasnolimitonitsauthorisedsharecapital.

Pursuanttoaresolutionpassedon16June2016,theCompanyresolvedthat:

 The

directorsbegenerallyauthorisedinaccordancewiththeArticlestoexerciseallpowersofthecompanytoallot

Ordinaryshares,orgrantrightstosubscribefor,orconvertanysecurityintoOrdinaryshares,uptoamaximum

aggregatenominalvalueof£500,000,providedalwaysthatsuchauthorityconferredonthedirectors

shall(unless

previouslyrenewed,variedorrevoked priortothattime)expireattheconclusionofthecompany’snextannual

generalmeetingoronthedatefalling18monthsafterthedateofthepassingoftheresolution,whicheveristhe

sooner.Thecompanymaymakeanofferoragreement

whichwouldormightrequireOrdinarysharestobeallotted

pursuant to the resolution referred to in paragraph 3.6.1 of the listing prospectus before the expiry of their

authoritytodoso,butallottheOrdinarysharespursuanttoanysuchofferoragreementafterthatexpirydate.

 Allpre

‐emptionrightsintheArticlestobewaived;(i)forthepurposesof,orinconnectionwith, thePlacing,the

issueoftheConversionsharesandtheissueoftheWarrantshares;(ii)generallyforsuchpurposesasthedirectors

may think fit (including the allotment of equity securities for

cash) up to a maximum aggregate amount of

£40,543.54;and (iii) for the purposes of the issue of securities offered (by way of a rights issue, open offer or

otherwise)toexistingholdersofOrdinaryshare,butsubjecttothedirectorshavingarighttomakesuchexclusions

orotherarrangements

inconnectionwiththeofferingastheydeemnecessaryorexpedient;(A)todealwiththe

equitysecuritiesrepresentingfractionalentitlements;and(B)todealwithlegalorpracticalproblemsinthelaws

ofanyterritory,ortherequirementsofanyregulatorybody;onthebasisthattheauthoritiesconferred

underthe

resolution referred to in paragraph 3.6.2 of the listing prospectus shall (unless previously renewed, varied or

revokedpriortothattime)expireattheconclusionofthecompany’snextannualgeneralmeetingoronthedate

falling18monthsafterthedateofthepassingoftheresolution,whichever

isthesooner.Thecompanymaymake

anofferoragreementwhichwouldormightrequireequitysecuritiestobeissuedbeforetheexpiryofitspower

todoso,butallottheequitysecuritiespursuanttoanysuchofferoragreementafterthatexpirydate.

TheholdersofOrdinary

shareshavefullvoting,dividendandcapitaldistributionrights.TheOrdinarysharesdo

notconferanyrightsofredemption.

On or following the occurrence of a change of control the receipts from the acquirer shall be applied to the

holdersoftheOrdinarysharesproratatotheirrespectiveholdings.

Ordinary

sharesanddeferredsharesarerecordedasequity.



14. Reserves

Thefollowingdescribesthenatureandpurposeofeachreservewithinequity:



Reserve Descriptionandpurpose

Sharepremium Amountsubscribedforsharecapitalinexcessof

nominalvalue

Retaineddeficit Allothernetgainsandlossesandtransactionswith

owners(e.g.dividends)notrecognisedelsewhere



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS(Continued)

FORTHEYEARENDED30JUNE2022





Page48

15. Tradeandotherpayables

Group

30June

2022

£

30June

2021

£

Tradepayables  809,844 821,249

Otherpayables  5,574,562 4,660,251

Accruals139,120 95,621

Taxandsocialsecurity‐304,348

Total6,523,526 5,881,469

Bookvaluesapproximatetofairvaluesat30June2022and30June2021.

Company

30June

2022

£

30June

2021

£

Tradepayables  809,380 775,376

Otherpayables  5,574,562 4,657,060

Accruals139,120 89,121

Taxandsocialsecurity  ‐ ‐

6,523,062 5,521,557

Bookvaluesapproximatetofairvaluesat30June2022and30June2021.

16. Loansandborrowings

Group



Current

 30June

2022

£

30June

2021

£

Convertibleloans2,415,000 2,415,000

Total2,415,000 2,415,000



Bookvaluesapproximatetofairvaluesat30June2022and30June2021.

Company



Current

 30June

2022

£

30June

2021

£

Convertibleloans2,415,000 2,415,000

Total2,415,000 2,415,000



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS(Continued)

FORTHEYEARENDED30JUNE2022





Page49

17. Provisions



 30June

2022

£

30June

2021

£

Provisionsbroughtforward

Provisionreversedinyear

 34,000

(34,000)

34,000

‐

Provisionscarriedforward‐34,000



18. FinancialInstruments–RiskManagement

Thegroupisexposedthroughitsoperationstothefollowingfinancialrisks:



 Creditrisk

 Marketrisk

 Liquidityrisk



Incommonwithotherbusinesses,thegroupisexposedtorisksthatarisefromuseof financialinstruments.This

notedescribesthe

group’sobjectives,policiesandprocessesformanagingthoserisksandthemethodsusedto

measurethem.



The principal financial instruments used by the group, from which the financial instrument risks arise, are as

follows:



 Cashandcashequivalents

 Tradeandotherpayables

 Loansandborrowings



A

summaryofthefinancialinstrumentsheldbycategoryisprovidedbelow:



 Financialassets–amortisedcost

 Financialliabilities–amortisedcost



Group:

 2022

£

2021

£

Cashandcashequivalents 5 50,929

Tradeandotherreceivables‐103,126

Totalfinancialassets–amortisedcost 5 154,055



 2022

£

2021

£

Tradeandotherpayables 6,523,526 5,881,469

Loansandborrowings 2,415,000 2,415,000

Totalliabilities–amortisedcost 8,938,526 8,296,469



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS(Continued)

FORTHEYEARENDED30JUNE2022





Page50

18.FinancialInstruments–RiskManagement(continued)



Company: 2022

£

2021

£

Cashandcashequivalents‐838

Tradeandotherreceivables‐400,795

Totalfinancialassets–amortisedcost‐401,633



 2022

£

2021

£

Tradeandotherpayables 6,523,062 5,521,557

Loansandborrowings 2,415,000 2,415,000

Totalliabilities–amortisedcost 8,938,062 7,936,557



The Board has overall responsibility for the determination of the group’s risk management objectives and

policies.



The overallobjective of theBoard is to set policies that seek to reducerisk as far aspossible without unduly

affectingtheGroups’competitivenessandflexibility.Furtherdetailsregardingthesepoliciesareset

outbelow:



Creditrisk

CreditriskistheriskoffinanciallosstotheGroupifacounterpartytothefinancialinstrumentfailstomeetits

contractual obligations. It is Group policy to assess the credit risk of new customers before entering into

contracts.



Creditriskalsoarisesfromcash

andcashequivalentsanddepositswithbanksandfinancialinstitutions.Forbanks

andfinancialinstitutions,onlyindependentlyratedpartieswithhighcreditstatusareaccepted.



TheGroupdoesnotenterintoderivativestomanagecreditrisk.



Cashinbank

Group

 2022

£

2021

£

CashheldatHSBC

–

S&PRatingAA 5 46,746

CashheldatSantander

–

S&PratingA‐4,183

Totalfinancialassets 5 50,929



Company

 2022

£

2021

£

CashheldatHSBC

–

S&PRatingAA‐838

Totalfinancialassets‐838



Marketrisk



Foreignexchangerisk

ForeignexchangeriskarisesbecausethegrouphasoperationsinPortugalandSpain,whosefunctionalcurrency

is not the same as the functional currency of the group. The group’s net assets arising from such overseas

operationsareexposedtocurrencyriskresultingingainsorlossesonretranslationintosterling.



Asof30June2022thegroup’sexposuretoforeignexchangeriskwasnotmaterialastheoverseasoperations

hadbeendiscontinued.

ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS(Continued)

FORTHEYEARENDED30JUNE2022





Page51

18.FinancialInstruments–RiskManagement(continued)



Liquidityrisk

LiquidityriskarisesfromtheGroup’smanagementofworkingcapital.ItistheriskthattheGroupwillencounter

difficultyinmeetingitsfinancialobligationsastheyfalldue.

TheBoardwillcontinuetomonitorlongtermcashprojectionsandwill

considerraisingfundsasrequired.



The followingtable sets out the contractualmaturities (representingundiscounted contractualcash‐flows) of

financialliabilities:



Group:



2022



Upto

3months

£

Between

3and12

months

£

Between

1and2

years

£

Between

2and5

years



£

Over5

years

£

Tradeandotherpayables 6,523,526‐‐‐‐

Borrowings 2,415,000‐‐‐‐

Total 8,938,526‐‐‐‐



2021



Upto

3months

£

Between

3and12

months

£

Between

1and2

years

£

Between

2and5

years

£

Over5

years

£

Tradeandotherpayables 5,881,469‐‐‐‐

Borrowings 2,415,000‐‐‐‐

Total 8,296,469‐‐‐‐



Moredetailsinregardtothelineitemsareincludedintherespectivenotes:



 Tradeandotherpayables–note15

 Loanandborrowings–note16



Atthebalancesheetdate,theGrouphadliabilitiesdueforsettlementwithin3monthsof£8,938,526,compared

toa

cashbalanceof£5.Sincetheyearend,theGrouphaverenegotiatedrepaymenttermswithsuppliersand

havearrangedafurtherfundingagreementtoensurethatoperatingcostsandlegacyliabilitiescanbesettled.



£2,415,000ofborrowingsareconvertibleloannoteswhichcanbesettledbywayofanissue

ofsharecapital.



Capitalriskmanagement

The group monitors capital which comprises all components of equity (i.e. share capital, share premium and

accumulateddeficit).





ThedirectorsareawareoftheneedfortheCompanytoobtaincapitalinordertofundthegrowthofthebusiness

andareincontinualdiscussionswithprovidersofbothdebtandequitycapital.Thedirectorsregularlyreview

thestatus ofsuch discussions andaim atalltimes tohave

offers ofcapitalfunding availableto theCompany

whichmorethanexceedtheneedsoftheCompanyoverthecomingperiod.





Inthemediumtermandinadditiontotheneedtosafeguardtheentity’sabilitytocontinueasagoingconcern,

the directors are aware of the views of members on certain financing structures and therefore have set an

objectivetomovetowardsaconventional,simplifiedcapitalstructurebasedonequity

capital.



Furtherdetailsaboutthedirectors’assessmentoftheGroup’sabilitytocontinueasagoingconcernandthekey

considerationstheretoaresetoutintheCorporateGovernanceReportonpages12to17.



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS(Continued)

FORTHEYEARENDED30JUNE2022





Page52

18.FinancialInstruments–RiskManagement(continued)



Atpresentthedirectorsdonotintendtopaydividendsbutwillreconsiderthepositioninfutureperiods,asthe

groupbecomesprofitable.



Reconciliationofmovementinnetcash

 



Netcash

at01July

2021



Cash

flow



Loannotes

issuedin

the

period



Loannotes

convertedin

theperiod

Repayment

of

borrowings

(continuing

activities)



Netcash

at30June

2022

 £ £ £ £ £ £

     

Cashatbank

andinhand

50,929

 (50,924)‐ ‐‐5

Borrowings (2,415,000)‐‐ ‐‐(2,415,000)



    

Total

financial

liabilities

(2,364,071) (50,924)‐ ‐‐(2,414,995)



    



 



Netcash

at01July

2020



Cash

flow



Loannotes

issuedin

the

period



Loannotes

convertedin

theperiod

Repayment

of

borrowings

(continuing

activities)



Netcash

at30June

2021

 £ £ £ £ £ £

     

Cashatbank

andinhand

180,397

 (129,468)‐ ‐‐50,929

Borrowings (1,739,594)‐(720,000)‐44,594 (2,415,000)



    

Total

financial

liabilities

(1,559,197) (129,468) (720,000)‐44,594 (2,364,071)



    

    

19. CapitalCommitments

Thegrouphadnocapitalcommitmentsat30June2022or30June2021.



20. RelatedpartyTransactions

Detailsofdirectors’remunerationaregivenintheRemunerationCommitteeReport.



Therearenootherrelatedpartytransactions.



21. ContingentLiabilities

Thegrouphadnocontingentliabilitiesat

30June2022or30June2021.



22. PostBalanceSheetEvents

Inthefourthquarterof2022exitedadministration. Furtherdetails can befound in theChief  Executiveand

Chairmans’Statement.

23. UltimateControllingParty

Thedirectorsdonotconsiderthatthereisanultimatecontrollingpartyofthe

group.

