Registerednumber:10197256(England&Wales)                       ## ICONIC LABS PLC  ### AUDITEDANNUALREPORT ### & ### ACCOUNTS   YEARENDED30JUNE2022    ICONICLABSPLC CONTENTS    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  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   CompanyStatementofChangesinEquity 34   NotestotheConsolidatedFinancialStatements 35   ICONICLABSPLC COMPANYINFORMATION     Directors DavidStybr BradleyTaylor  WilhelmusVanDerMeer MarijaHrebac    Companysecretary AMBASecretariesLimited 400ThamesValleyParkDrive Reading,Berkshire RG61PT  Companynumber 10197256 |  |  | | --- | --- | | Registeredoffice | 3 Field Court | |  | London | |  | WC1R 5EF | |  |  | |  |  | | Auditor | NordensAuditLimited | TheRetreat 406RodingLaneSouth WoodfordGreen,Essex IG88EY    Solicitor RWKGoodman 69CarterLane London EC4V5EQ   Brokers NovumSecuritiesLimited nd 2 Floor,LansdowneHouse 57BerkeleySquare London W1J6ER    Registrar SLCRegistrarsLimited ElderHouse StGeorgesBusinessPark BrooklandsRoad Weybridge Surrey KT130TS     Page1 ICONIC LABS PLC CHIEF EXECUTIVE AND CHAIRMAN'S REPORT Dear Shareholders, 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. 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. 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. ADMINISTRATION 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. EVENTS FROM 1 JULY 2021 THROUGH 30 JUNE 2022: 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: - 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. - 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 Page 2 ICONIC LABS PLC CHIEF EXECUTIVE AND CHAIRMAN'S REPORT (Continued) 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. - 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. EVENTS 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 Page 3 ICONIC LABS PLC CHIEF EXECUTIVE AND CHAIRMAN'S REPORT (Continued) 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 aggregate 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. # NEW 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. Page 4 ICONIC LABS PLC CHIEF EXECUTIVE AND CHAIRMAN'S REPORT (Continued) 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: - 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 - 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. Page 5 ICONIC LABS PLC CHIEF EXECUTIVE AND CHAIRMAN'S REPORT (Continued) 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. FINANCIAL 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 Page 6 ICONICLABSPLC STRATEGICREPORT 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. P 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.   Page7 ICONICLABSPLC STRATEGICREPORT(continued) 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      Page8 ICONIC LABS PLC STRATEGIC REPORT (continued)--- ### 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 ### FUTURE 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. ---Page 9 ICONICLABSPLC STRATEGICREPORT(continued) 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.   Page10 ICONICLABSPLC STRATEGICREPORT(continued)  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   Page11 ICONICLABSPLC CORPORATEGOVERNANCEREPORT 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.   Page12 ICONICLABSPLC CORPORATEGOVERNANCEREPORT(Continued) 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.   Page13 ICONICLABSPLC CORPORATEGOVERNANCEREPORT(Continued) 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.   Page14 ICONICLABSPLC CORPORATEGOVERNANCEREPORT(Continued)  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.       Page15 ICONICLABSPLC CORPORATEGOVERNANCEREPORT(Continued)  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.        Page16 ICONICLABSPLC CORPORATEGOVERNANCEREPORT(Continued) 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    Page17 ICONIC LABS PLC REMUNERATION COMMITTEE REPORT--- ### 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. ---Page 18 ICONICLABSPLC REMUNERATIONCOMMITTEEREPORT(Continued) 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   Page19 ICONICLABSPLC AUDITCOMMITTEEREPORT 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              Page20 ICONICLABSPLC DIRECTORS’REPORT  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:    Page21 ICONICLABSPLC DIRECTORS’REPORT(continued)    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   Page22 ICONICLABSPLC INDEPENDENTAUDITOR’SREPORT FORTHEYEARENDED30JUNE2022    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   Page23 ICONIC LABS PLC INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 30 JUNE 2022 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 remuneration. 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. Page 24 ICONICLABSPLC INDEPENDENTAUDITOR’SREPORT FORTHEYEARENDED30JUNE2022   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.   Page25 ICONICLABSPLC INDEPENDENTAUDITOR’SREPORT FORTHEYEARENDED30JUNE2022   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   Page26 ICONICLABSPLC INDEPENDENTAUDITOR’SREPORT FORTHEYEARENDED30JUNE2022   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    Page27 ICONICLABSPLC CONSOLIDATEDSTATEMENTOFCOMPREHENSIVEINCOME FORTHEYEARENDED30JUNE2022    |   Notes Yearended | | | |  Yearended30 | | | | --- | --- | --- | --- | --- | --- | --- | | | 30June | | | | June | | | | | 2022 | | | 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 | | (0.00) | | (0.00) | | | ‐ 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.   Page28 ICONIC LABS PLC CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022 Total non‐current assets 1 1 Current Assets | Trade and other receivables | 11 | ‐ 103,126 | | | --- | --- | --- | --- | | Cash and cash equivalents | 12 | 5 | 50,929 | | | | 5 | 154,055 | | Total assets | | 6 | 154,056 | Equity | Share capital | 13 | | 4,450,50 6 | | 4,450,506 | | --- | --- | --- | --- | --- | --- | | Share premium | 14 | | 7,900,77 8 | | 7,900,778 | | Retained deficit | 14 | (21,289,8 04) | | (20,527,6 97) | | | | 8,938,52 6 | | 8,330,469 | | --- | --- | --- | --- | | Total liabilities | 8,938,52 6 | | 8,330,469 | | Total equity and liabilities | | 6 | | 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 9 15 16 17 30 June 30 June Intangible assets 1 1 (8,938 ,520) (8,176,413) Liabilities Current liabilities Loans and borrowings 2,415,00 0 2,415,000 Provisions ‐ 34,000 2022 2021 Notes £ £ Assets Non ‐ current assets Trade and other payables 6,523,52 6 5,881,469 154,056 ICONICLABSPLC CONSOLIDATEDSTATEMENTOFCHANGESINEQUITY FORTHEYEARENDED30JUNE2022            Share Share Retained Total capital premium deficit 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 | | 311,570 | | | 2,406,223 | | ‐ | | | 2,717,793 | | | | Costofplacings | ‐ | | | (84,234) | | | ‐ | | | (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) | | | | | | | |                             Page30 ICONICLABSPLC CONSOLIDATEDSTATEMENTOFCASHFLOWS FORTHEYEARENDED30JUNE2022   | | |   | | | | | | Yearended | | | | | Yearended | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 30June | | | | | 30June | | | | | | | | | | | | | | 2022 | | | | | 2021 | | | | | | | | | Notes | | | | | £ | | | | | £ | | 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 | | |  | | |  ‐ 20,086 | | | | | | | | | | | | Impairmentofintangibleassets | | | | | | | | | | | | | | 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 | | |  | | |  642,057 | | | | | |  4,181,675 | | | | | | (Decrease)/increaseinprovisions | | | | | | | | | (34,000) | | | | | | | ‐ | | 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 | | | | | | | | | | | |   Page31 ICONICLABSPLC COMPANYSTATEMENTOFFINANCIALPOSITION FORTHEYEARENDED30JUNE2022   |   | | 30June | | | 30June | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | 2022 | | | 2021 | | | | Notes | | | £ | | | £ |     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   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   Page32 ICONIC LABS PLC # COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2022 | | 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)** | Page 33 ICONICLABSPLC NOTESTOTHEFINANCIALSTATEMENTS FORTHEYEARENDED30JUNE2022   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.    Page34 ICONICLABSPLC NOTESTOTHEFINANCIALSTATEMENTS(Continued) FORTHEYEARENDED30JUNE2022   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.   Page35 ICONICLABSPLC NOTESTOTHEFINANCIALSTATEMENTS(Continued) FORTHEYEARENDED30JUNE2022   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 is  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.     Page36 ICONICLABSPLC NOTESTOTHEFINANCIALSTATEMENTS(Continued) FORTHEYEARENDED30JUNE2022   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.     Page37 ICONICLABSPLC NOTESTOTHEFINANCIALSTATEMENTS(Continued) FORTHEYEARENDED30JUNE2022   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.   Page38 ICONICLABSPLC NOTESTOTHEFINANCIALSTATEMENTS(Continued) FORTHEYEARENDED30JUNE2022   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)     Page39 ICONICLABSPLC NOTESTOTHEFINANCIALSTATEMENTS(Continued) FORTHEYEARENDED30JUNE2022   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.   Page40 ICONICLABSPLC NOTESTOTHEFINANCIALSTATEMENTS(Continued) FORTHEYEARENDED30JUNE2022   3. LossfromOperations |  Yearended | | | | Yearended | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | 30June | | | | 30June | | | | | | 2022 | | | | 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 ‐ 2,504 Writingdownofsubsidiaryundertakings (130,249) ‐ Totaladministrativeexpenses 203,930 3,577,595 DirectcostsincurredinconnectionwithEHGOFfinancing 585,000 70,000 facility Otherpenalties ‐ 4,593,154  788,930 8,240,749 4. StaffCosts |  | | | | | | | |  | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Yearended | | | | Yearended | | | | | | | 30June | | | | 30June | | | | | | | 2022 | | | | 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.   Page41 ICONICLABSPLC NOTESTOTHEFINANCIALSTATEMENTS(Continued) FORTHEYEARENDED30JUNE2022    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 | | | Yearended | | | | | | | 30June | | | 30June | | | | | | | 2022 | | | 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 | | | Yearended | | | --- | --- | --- | --- | --- | | | 30June2022 | | 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 | | | Yearended | | | --- | --- | --- | --- | --- | | | 30June2022 | | 30June2021 | | | | | £ | | £ |   Currenttax ‐ ‐ Totalcurrenttax ‐ ‐         Page42 ICONICLABSPLC NOTESTOTHEFINANCIALSTATEMENTS(Continued) FORTHEYEARENDED30JUNE2022   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 | | Yearended | | | | | | 30June2022 | | 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 | | Yearended | | | | 30June2022 | | 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 | (0.00) | | (0.00) | | | ‐discontinuedoperations | (0.00) | | (0.00) | |             Page43 ICONICLABSPLC NOTESTOTHEFINANCIALSTATEMENTS(Continued) FORTHEYEARENDED30JUNE2022   9. IntangibleAssets Group  Intellectual Computer  Property 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 21,599 ‐ 21,599 Eliminatedondisposal ‐ (139,106) (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 | | | 30June | | | | --- | --- | --- | --- | --- | --- | | | 2022 | | | 2021 | | | | | £ | | | £ | Investmentsinsubsidiaries 2 2  2 2            Page44 ICONICLABSPLC NOTESTOTHEFINANCIALSTATEMENTS(Continued) FORTHEYEARENDED30JUNE2022    10.Investments(continued) Subsidiariesasat30June2022: |  |  | Countryof | Natureof |  | | --- | --- | --- | --- | --- | | Entity | Registeredofficeaddress | incorporation | business | Notes | | WideCellsInternational | 7BellYard,London,WC2A | United | Holding | (c) | | Limited | 2JR | Kingdom | company | | | WideCellsLimited 3FieldCourt,Gray’sInn, | | United | Inliquidation (a) | | | | London,WC1R5EF | Kingdom | | | | WideCellsPortugalSA RuaDaCasaBranca,97 | | Portugal Trading | | (a) | | | Coimbra3030‐109,Portugal | | company | | | WideCellsEspanaSL CalleCastillodeFuensaldana, | | Spain Inliquidation (a) | | | 4,28232LasRozas,Madrid | CellPlanLimited 7Bell | | Yard,London,WC2A | United | Dormant | (a) | | --- | --- | --- | --- | --- | --- | | | 2JR | | Kingdom | company | | | CellPlanInternationalLda EdificioTowerPlazaRotunda | | | Portugal Dormant | | (b) | | | Eng,EdgarCardoso,no.23, | | | company | | 11F,4400‐676VilaNovade | | Gaia,Portugal |  | | | | | --- | --- | --- | --- | --- | --- | | IconicLabsIPLimited 7BellYard,London,WC2A | | | United | Trading | (c) | | | 2JR | | Kingdom | company | | | NuucoMediaLimited 7BellYard,London,WC2A | | | United | Trading | (c) | | | 2JR | | Kingdom | company | |  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.          Page45 ICONICLABSPLC NOTESTOTHEFINANCIALSTATEMENTS(Continued) FORTHEYEARENDED30JUNE2022   11. Tradeandotherreceivables  Group |  30June | | | 30June | | | | --- | --- | --- | --- | --- | --- | | | 2022 | | | 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 | | | 30June | | | | --- | --- | --- | --- | --- | --- | | | 2022 | | | 2021 | | | | | £ | | | £ | Amountsduefromgroupcompanies‐398,185 Otherreceivables‐2,610  ‐ 400,795  12. Cashandcashequivalents  Group |  30June | | | 30June | | | | --- | --- | --- | --- | --- | --- | | | 2022 | | | 2021 | | | | | £ | | | £ | Cashatbankavailableondemand 5 50,929 Bankoverdraft ‐ ‐ Totalcashandcashequivalents 5 50,929 Company |  30June | | | 30June | | | | --- | --- | --- | --- | --- | --- | | | 2022 | | | 2021 | | | | | £ | | | £ | Cashatbankavailableondemand‐838 Totalcashandcashequivalents‐838           Page46 ICONIC LABS PLC NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 30 JUNE 2022 # 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 | Page 47 ICONICLABSPLC NOTESTOTHEFINANCIALSTATEMENTS(Continued) FORTHEYEARENDED30JUNE2022   15. Tradeandotherpayables Group | 30June | | | 30June | | | | --- | --- | --- | --- | --- | --- | | | 2022 | | | 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 | | | 30June | | | | --- | --- | --- | --- | --- | --- | | | 2022 | | | 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 |  |  30June | | | 30June | | | | --- | --- | --- | --- | --- | --- | --- | |  | | 2022 | | | 2021 | | | Current | | | £ | | | £ | 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 |  |  30June | | | 30June | | | | --- | --- | --- | --- | --- | --- | --- | |  | | 2022 | | | 2021 | | | Current | | | £ | | | £ | Convertibleloans2,415,000 2,415,000 Total2,415,000 2,415,000       Page48 ICONICLABSPLC NOTESTOTHEFINANCIALSTATEMENTS(Continued) FORTHEYEARENDED30JUNE2022   17. Provisions  |  |  30June | | | | 30June | | | | --- | --- | --- | --- | --- | --- | --- | --- | |  | | | 2022 | | | 2021 | | | | | | | £ | | | £ | | Provisionsbroughtforward |  34,000 | | | | 34,000 | | | | Provisionreversedinyear | | (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          Page49 ICONICLABSPLC NOTESTOTHEFINANCIALSTATEMENTS(Continued) FORTHEYEARENDED30JUNE2022   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.   Page50 – – – ICONICLABSPLC NOTESTOTHEFINANCIALSTATEMENTS(Continued) FORTHEYEARENDED30JUNE2022   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: | |  | | |  | Between | | Between | | | Between | | | Over5 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | |  | | Upto | | 3and12 | | 1and2 | | | | 2and5 | | years | | | |  | 3months | | | months | | | years | | | years | | | £ | | 2022 | | | | £ | | £ | | | £ | | |  £ | | | Tradeandotherpayables 6,523,526‐‐‐‐ Borrowings 2,415,000‐‐‐‐ Total 8,938,526‐‐‐‐   | |  | | |  | Between | | Between | | | Between | | | Over5 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | |  | | Upto | | 3and12 | | | 1and2 | | 2and5 | | | years | | | |  | 3months | | | months | | | years | | | years | | | £ | | 2021 | | | | £ | | £ | | | £ | | | £ | | | 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.    Page51 ICONICLABSPLC NOTESTOTHEFINANCIALSTATEMENTS(Continued) FORTHEYEARENDED30JUNE2022   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 |   | | | | |  | | | |  | |  | Repayment | | | |  | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | |  | |  | Loannotes | | | | Loannotes | | | of | | |  | | | Netcash | | | |  | | issuedin | | | convertedin | | borrowings | | Netcash | | | | | at01July | | | Cash | | | | the | | theperiod | | (continuing | | at30June | | | | | | 2021 | | flow | | | period | | | | | activities) | | | 2022 | |  £ £ £ £ £ £       Cashatbank 50,929  (50,924)‐ ‐‐5 andinhand Borrowings (2,415,000)‐‐ ‐‐(2,415,000)        Total (2,364,071) (50,924)‐ ‐‐(2,414,995) financial liabilities         |   | | | | |  | | | |  | |  | Repayment | | | |  | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | |  | |  | Loannotes | | | | Loannotes | | | of | | |  | | | Netcash | | | |  | | issuedin | | | convertedin | | borrowings | | Netcash | | | | | at01July | | | Cash | | | | the | | theperiod | | (continuing | | at30June | | | | | | 2020 | | flow | | | period | | | | | activities) | | | 2021 | |  £ £ £ £ £ £       Cashatbank 180,397  (129,468)‐ ‐‐50,929 andinhand Borrowings (1,739,594)‐(720,000)‐44,594 (2,415,000)        Total (1,559,197) (129,468) (720,000)‐44,594 (2,364,071) financial liabilities             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.    Page52