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

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

ICONIC LABS PLC



AUDITEDANNUALREPORT

&

ACCOUNTS



YEARENDED30JUNE2021

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ICONICLABSPLC

CONTENTS

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Pages

CompanyInformation 1

 

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

 

StrategicReport 8

 

CorporateGovernanceReport 14

 

RemunerationCommitteeReport 20

 

AuditCommitteeReport 23

 

Directors’Report 24

 

IndependentAuditor’sReport 26

 

ConsolidatedStatementofComprehensiveIncome 32

 

ConsolidatedStatementof

FinancialPosition 33

 

ConsolidatedStatementofChangesinEquity 34

 

ConsolidatedStatementofCashFlows 35

 

CompanyStatementofFinancialPosition 36

 

CompanyStatementofChangesinEquity 37

 

NotestotheConsolidatedFinancialStatements 38

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ICONICLABSPLC

COMPANYINFORMATION

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Page1

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Directors



BradTaylor

DavidStybr

WilhelmusVanDerMeer

MarijaHrebac



Companysecretary



AMBASecretariesLimited

400ThamesValleyParkDrive

Reading,Berkshire

RG61PT

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Companynumber 10197256

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Registeredoffice

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3 Field Court

London

WC1R 5EF

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Auditor

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NordensAuditLimited

TheRetreat

406RodingLaneSouth

WoodfordGreen,Essex

IG88EY



Solicitor

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RWKGoodman

69CarterLane

London

EC4V5EQ



Brokers



NovumSecuritiesLimited

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

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

ICONICLABSPLC

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

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Page2

DearShareholders,



Iampleasedtopresenttheauditedaccountsforthetwelvemonthsended30June2021.ItookoverasChief

ExecutiveOfficerofIconicLabsPLCanditssubsidiaries(together,“Iconic“orthe“Company”)on23March2021

and since that time have worked with our

 team to restructure and stabilize the Company amid challenging

circumstances.



Whiletheseaccountscovertheperiodended30June2021,giventheadministrationthatbeganon4June2021

andsuspensionoftrading,ourfocushas,ofnecessity,beenonrestructuringtheCompany,settlingvariouslegal

disputes, and exiting administration

 rather than on the accounting, operational, and strategic tasks that we

wouldhaveundertakeninnormalcircumstances.Assuch,itisonlynow,inthefourthquarterof2022thatwe

havebeenabletopreparetheseaccounts.

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The Company Voluntary Arrangement (the “CVA”) was approved by the creditors,

 any other legal disputes

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

theadministration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2021,but

wewillalsobeprovidinganupdateonwhereIconicstandsasofthefourth

quarter of 2022 in the interest of full transparency and providing the market with the most up to date

informationontheCompany.

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Beforedoingso,anoverviewofthesituationpriortoenteringadministration

isinorder.

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RIORTOADMINISTRATION

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The twelve months ended 30 June 2021 involved a split period in terms of the Board of Directors and

managementoftheIconic,withthecurrentDirectorstakingoverinMarchof2021.

Duringthe secondhalf of2020,the formerDirectorscontinued theprocess ofcleaningup  theold

WideCells

businessthathadfailedtomakeanycommercialprogressorgenerateanymeaningfulrevenues.Iconic atthat

stagehadsignificantliabilitiesfromtheWideCellsoperations,whichtheformerDirectorsresolvedinorderto

avoidaninsolvencyevent.Theseincludedliabilitiestoformeremployees,closingofficesinLondon,Manchester

andPortugal

andclosingthelaboratoryfacilityatManchesterUniversity.Noneofthesefacilitieshad developed

anycommercialoperations,andtheoldWideCellsbusinesshadfailedtogenerateanyrevenues.

The former Directors also built a new media business involving both owned brands, such as GSN, and

managementserviceagreements(“MSAs")

inrespectofTheLondonEconomic,theJOEMediagroupandLovin'

Media.

Iconic has been historically funded by European High Growth Opportunities Securitization Fund (“EHGOSF”)

throughconvertibleloannoteswithwarrantsattached.

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InOctober2020,theformerDirectorsterminatedtheEHGOSFfundingarrangementsandthensignedasecured

debtfacility

withShardMerchantCapital(“Shard”)on12November2020.



EHGOSFcontestedthevalidityofIconic’stermination.InJanuary2021,IconicwasservedwithaHighCourtclaim

byEHGOSFinrelationtoallegedbreachesoftheEHGOSFfundingarrangements.Inturn,Iconicdeniedthatit

hadbreachedthesefunding

arrangements.FollowingattemptsbyOttHoldingstoconveneageneralmeeting

and remove the former Directors, the former Directors and most Iconic personnel resigned in January and

February2021.



ICONICLABSPLC

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

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Page3

SarahDeeswasappointedCEOon5February2021andStephenBirrellappointedtotheBoardofDirectorson

9February2021.Bothresignedon23March2021.



New board members Brendan O’Mahony, David Štýbr and Wilhelmus Van Der Meer were appointed on 19

March2021,withBradTaylorbeing

appointedtotheBoardandalsoasCEOon23March2021.



AformalSettlementAgreementwascompletedon26March2021betweenEHGOSFandIconicinrespectofthe

HighCourtclaimandothermatters.



On 28April 2021,Brendan O’Mahony resigned fromthe Board andwas replaced on

 24May 2021 by Marija

Hrebac,subjecttoregulatorychecks,whichwereconfirmedon4June2021,butherappointmentcouldnotbe

formalizedgiventheadministrationproceedingssetforthbelow.



On3June2021,ArchCapitalPartnersLLP(“ArchCapital”)tookanassignmentofallofShard’srights

andbenefits

under the secured debt facility dated 12 November 2020. Shard and Arch Capital gave Iconic notice of the

assignmentonthe samedate.Separately,on thesame date,ArchCapital issuedanoticeof defaultto Iconic

listingvariouseventsofdefaultanddemandingimmediaterepaymentofthe

sumsduebeing£184,295.



As the sum demanded was not repaid, Arch Capital appointed Joint Administrators, Antony Batty and Hugh

Jesseman,toIconicLabson4June2021.



On7June2021,theJointAdministratorsinvitedtheFinancialConductAuthority(“FCA”)totemporarilysuspend

tradingintheCompany’sshares.





VENTSPOST‐CLOSINGOFTHE2021ACCOUNTS:



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

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

ICONICLABSPLC

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



Page4

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.



ETTLEMENTANDCVA



Withthese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16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 expenses associated with the

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:

ICONICLABSPLC

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



Page5



 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.



EWFINANCINGFACILITYWITHEHGOSF



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

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

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

EHGOSF.

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

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



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

ICONICLABSPLC

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



Page6

thelowestvolume‐weightedaveragepriceofthe15tradingdayspriortodeliveryofaconversionnoticeandb)

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

Financing Facility. On termination of the Financing Facility

 Iconic has an obligation to pay EHGOSF an

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

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



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





Withrespecttothefourthtrancheonwards,thatthesuspensiononIconic’ssharesfromtradingonthe

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

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

“Commencementof

Trading”);



 FromthefirsttranchefollowingtheCommencementofTradingonwards:



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

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

nominalvalueofIconic’s

shares;and

o theaveragedailyvaluetradedofIconic’sshares(excluding5%ofthedatapointsfromthetop

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

immediatelypriortotheapplicableclosingdatemustbeatleast£

10,000;



 FromthefifthTrancheonwards,Iconichavingpublishedaprospectus;



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

Iconicwouldoccur;and



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



TheWarrantswillamountto50%of thefinancingprovidedbyEHGOSFsuchthatthenumberofWarrantswill

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



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

exercisepricewillbe

equaltothesharepriceimmediatelypriortosuspension,or£0.00016pershare.



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

to 120% of the share volume weighted average price of the shares over the

15 trading days immediately

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



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

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

on

theMainMarketoftheLondonStockExchange.TheIconicexecutiveteam,advisorsand auditorsarediligently

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

duecourse.



On 28 October 2022, Iconic received a Subscription Form from EHGOSF for

 the second tranche of notes

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



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.



ICONICLABSPLC

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



Page7



CVA

PAYMENTS



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

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

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

filingswithCompanies

Housetothiseffect.



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

made.



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

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

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

CompanytotheDirectors.



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



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

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

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



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

timelymade.



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

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

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



INANCIALSUMMARY



Iconicincurredalossforthe2021financialyearof£7,697,306.Thelossincludespenaltiesincurredasaresult

ofthedefaultsintheperiod,asdisclosedabove,totaling£4,663,154andalsoincludesthecostsincurredinthe

settlementagreementswiththeex‐directorsandstaff.



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

Date:20



December2022





ICONICLABSPLC

STRATEGICREPORT



Page8

INTRODUCTION



Thisisthefifth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2021AnnualReport.



PrincipalActivitiesandBusinessReview



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

driven companies in the online

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

sectors. 

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

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

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

thetermsoftheCVAandsettlement

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

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

RINCIPALRISKSANDUNCERTAINTIES



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



RevenueandProfitabilityRisk



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

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

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

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

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

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

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

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

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

AdministrationRisk



Asoftheclosingofthe

2021accounts,theJointAdministratorscontrolledIconic,howeverpost‐closingofthe

2021accounts,IconicenteredintoaCVAwithallcreditors,hasexitedadministration,andisworkingwiththe

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

suspensionwill

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

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

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



KeyExecutiveRisk



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

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

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

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

performance.

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

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

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

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

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

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

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

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

ICONICLABSPLC

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



Page9



FundingRisk



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

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

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

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

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

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

financingpartnerwillbedifficultif

notimpossible.



MarketRisk



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

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

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



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

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

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

put

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



GlobalEconomicRisk



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

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

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

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

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

revenues.



PotentialUnrecordedLegacyLiabilities



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

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

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

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

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

isasfollows:

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

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

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

appointedliquidator.

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

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

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

 CellplanInternationalLDA

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

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

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

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

theStemCellinsuranceproduct.

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

 WidecellsInternationalLimited–dormant



ICONICLABSPLC

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



Page10

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ac countingpolicies

innote

1ofthefinancialstatements.



FinancialReview



Iconicmadealossinthe2021financialyearof£7,697,306(2020‐£2,390,121),whichislargelycontributableto

thedefaultpenaltiesandsettlementagreementspreviouslymentionedintheChiefExecutiveandChairmans’

Report.



The revenue of the Group in the year was £509,171 (2020‐£107,303) and related to the provision

 of

managementservices.Administrativeexpensesincreasedby£1,220,230intheyear,mainlyduetoanincrease

inconsultancyandstaffcostswhichincludedthecostsofsettlementagreements.Defaultsandpenaltiestotalled

£4,663,154(2020‐£611,380).



At 30 June2021, Iconic held total assets of £154,056 (2020‐£360,722), following the writing

 down of fixed

assetsandaprovisionforbad debtsintheyear.The Grouphadliabilitiesof  £8,330,469atthebalancesheet

date(2020‐£3,473,388),anincreaseof£4,857,081.Theincreaseinliabilitiesismainlyduetothedefaultsand

settlement agreements previouslydetailed in the Chief Executiveand

Chairmans’ Report. Details of the CVA

whichhasbeenapprovedpostyearendarealsodetailedinthatreport.



KeyPerformanceIndicators:



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



IconichasidentifiedthefollowingkeyperformanceindicatorswhichtheDirectorswilluseto

measuresuccess

againstthebusinessplan:

 Grossrevenuegrowth

 EBITDAgrowth

 Marketvalue



UTUREDEVELOPMENTANDSTRATEGY



MarketTrends



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

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

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

andprovideabroad

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

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



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

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

 now that Iconic has exited

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



CompanyStrategy



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

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

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

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

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

ICONICLABSPLC

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



Page11



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14.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12‐16.



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2021,andcontinuingthroughthefourthquarterof2022,Iconicdoesnothaveanyemployeesand

itsmanagementisbeingconductedprimarilybyBradley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

ICONICLABSPLC

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



Page12

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.



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

page

16.



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.

ThekeyBoarddecisionsmadeintheyeararesetoutbelow:

8July2020–NewmanagementservicescontractwithJOEMedia.

16July2020–NewmanagementservicescontractwithJOE

MediaIreland.

5August2020–AdditionalmanagementservicescontractwithJOEMedia.

10September2020–DecisiontoceasedrawingdownfundsundertheEHGOSFfinancingfacility.

30September2020–PartnershipwithGlimpseProtocolforAd‐tech.

14October2020–Terminationofallcontractsandotherarrangementswith

EHGOSF.

12November2020–SecureddebtfacilityenteredintowithShardMerchantCapital.

16November2020–NewmanagementservicescontractwithLovin’Media.

18January2021–BoardresponsetoannouncementbyOttHoldings.

1February2021–JohnQuinlan,LiamHarringtonandSamAsanteresignfromthe

Boardduetosituationwith

EHGOSFandOttHoldings.

5February2021–SarahDeesappointedCEOandtotheBoardofDirectors.

9February2021–StephenBirrellappointedtotheBoardofDirectors.

12February2021–KatharineLewisresignsfromtheBoardofDirectors.



3 March 2021

– Brendan O’Mahony, Wilhelmus van der Meer and David Štýbr appointed to the Board of

Directorssubjecttoregulatorychecks.



19 March 2021 – Appointment of BradleyTaylor, subjectto regulatory checks, and confirmation of Brendan

Mahoney, David Štýbr, and Wilhelmus van der Meer to the Board of Directors following

regulatory checks;

AppointmentofBradleyTaylorasChiefExecutiveOfficer;ResignationofSarahDeesandStephenBirrellfrom 

theBoardofDirectors.



23March2021–confirmation ofBradleyTaylortotheBoardofDirectorsfollowingregulatorychecks.

ICONICLABSPLC

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



Page13



25March2021–ApprovalofSettlementAgreementbetweenEHGOSFandIconic.



28April2021–BrendanO’MahonyresignsfromtheBoardofDirectors.



29April2021–ApprovalofInterimAccountsforthesixmonthsended31December2020;drawdownrequest

senttoEHGOSFfor£250,000underthe

£2.75millionfinancingfacility;with£2.5millionremainingunderthe

financing facility combined with negotiations for a further £50 million financing facility with EHGOSF, Board

determinedthatIconic remainedagoingconcern;resignation ofMSPSecretaries andappointmentof AMBA

SecretariesLimited.



19May2021–ApprovedtheDeedof

Variationregardingthe2020IssuanceAgreementascontemplatedbythe

SettlementAgreementapprovedon25March2021;Approvedthe29April2021drawdownnoticeandapproved

SideLetterpermittingEHGOSFtosubmita“ConversionNotice”or“WarrantExerciseNotice”toIconicpursuant

tothe2020IssuanceAgreement;ApprovedtheNotice,Agenda

andCirculartoconveneaGeneralMeetingto

beheldon15June2021.



24May2021–MarjaHrebacappointedtotheBoardofDirectors(uponcompletionofregulatorychecks,which

wereconfirmedon4June2021).



BradTaylor

Date:20



December2022

ICONICLABSPLC

CORPORATEGOVERNANCEREPORT



Page14

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organisation.



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onpages7‐11.



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

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

queriesraisedby

shareholderspromptly.

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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2021,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onpages7‐11.



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



DetailsofallDirectorsinpostthroughouttheperiodaresetoutonpage20.



Asof30June2021,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.

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Responsibilityanddelegation



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

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

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

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

tothem

 Majorinvestmentsorcapitalprojects

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

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

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

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

half‐yearlyfinancialstatements

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

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

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

or

byreasonoftheirsize

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



Boardbalance



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

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

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

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

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

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

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

ethnic,ornational

background.



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

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

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

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

judgement.

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

capabilities



BoardMemberBiographies



BradTaylor



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

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

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

oftheExecutiveCommitteeofOrco

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

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

CEOofOtt VenturesUSA and

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

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

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



DavidŠtýbr



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

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

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

leading CEE real estate company,

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

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

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

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



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

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

workforce.



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



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

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

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



Inpresentingthisreport,andhavingmonitored,reviewedor

approvedrecentshareholdercommunications, the

BoardisconfidentthatithaspresentedabalancedandunderstandableassessmentoftheIconic’spositionand

prospects.



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

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 2021, 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 2021, 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.Sincethechangeofmanagementin

March2021untilthefourthquarterof2022,therehasonlybeenoneAudit

Committeemeetingthatwasheld

toapprovethis2021AuditedAnnualReport&Accounts.



TheAuditCommitteeshall:



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

performance.

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

 Make recommendations to the Board in

 relation to the appointment, re‐appointment and removal of

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

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

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



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



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



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

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

backgroundinformation

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

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

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

actionsarisingduring

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

completion.

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Page19

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

Date:20December2022





ICONICLABSPLC

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

Page20

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2021,theOttCompaniesreceived£225,000outof£250,000forthefivemonthssincetheMSA

wassigned,andthenreceivedanadditional£140,000outof£400,000fortheeightmonthsthroughFebruaryof

2022 when the

 Ott Companies 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.



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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.



FormerBoardMembers



JohnQuinlan



MrQuinlanwasappointedasExecutiveDirectoron18March2019andresignedon31January2021.Forthe12

monthsended30June2021,Mr.Quinlanreceived£295,979



LiamHarrington



MrHarringtonwasappointedasExecutiveDirectoron18March2019andresignedon31January

2021.Forthe

12monthsended30June2021,Mr.Harringtonreceived£294,622.

ICONICLABSPLC

REMUNERATIONCOMMITTEEREPORT(Continued)



Page22



SamuelRegan‐Asante



MrRegan‐AsantewasappointedasExecutiveDirectoron29November2019andresignedon31January2021.

Forthe12monthsended30June2021,Mr.Regan‐Asantereceived£271,937.



KatharineLewis



Ms.LewiswasappointedasNon‐ExecutiveDirectoron14May2020and

resignedon12February2021.Forthe

12monthsended30June2021,Ms.Lewisreceived£nil.



SarahDees



Ms.DeeswasappointedasExecutiveDirectoron5February2021andresignedon19March2021.Forthe12

months ended 30 June 2021, Ms. Rees received an undisclosed sum

 pursuant to a confidential settlement

agreement.



StephenBirrell



Mr.Birrellwasappointedasnon‐executiveDirectoron5February2021andresignedon19March2021.Forthe

12monthsended30June2021,Mr.Birrellreceivedanundisclosedsumpursuanttoaconfidentialsettlement

agreement.



BrendanO’Mahony



Mr.

O’Mahoneywasappointedasnon‐ExecutiveDirectoron3March2021andresignedon29April2021.For

the12monthsended30June2021,Mr.O’Mahonyreceivedzerocompen sation. 



Dr.ChristophManthe



Dr.Manthewasappointedasnon‐ExecutiveDirectoron19May2021andresignedon16June

2021.Forthe12

monthsended30June2021,Dr.Manthereceivedzerocompensation.



BradTaylor

Date:20December2022



ICONICLABSPLC

AUDITCOMMITTEEREPORT



Page23

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sincethechangeofmanagementinMarch2021untilthefourth

quarter of 2022, there has only been one Audit Committee meeting that was held to approve this 2021

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

Date:20December2022





ICONICLABSPLC

DIRECTORS’REPORT



Page24

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2021.



Directors



TheDirectorsasof30June2021were:



BradTaylor–appointed23March2021

DavidŠtýbr–appointed19March

2021

WillemVanDerMeer–appointed19March2021

MarijaHrebac–appointed24May2021subjecttoregulatorychecks,whichwereconfirmedon4June2021.



Otherdirectorsthatservicedduringtheyearwere:



StephenBirrell–appointed9February2021,resigned19March2021

SarahDees

–appointed4February2021,resigned19March2021

LiamHarrington–resigned1February2021

KatharineLewis–resigned12February2021

StefanManthe–appointed19May2021,resigned8June2021

BrendanO’Mahony–appointed19March2021,resigned28April2021

JohnQuinlan–resigned1February

2021

SamuelRegan‐Asante–resigned1February2021



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2021(periodended

30June2020:£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2021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25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.

ICONICLABSPLC

INDEPENDENTAUDITOR’SREPORT

FORTHEYEARENDED30JUNE2021





Page25



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EuropeanUnion. Thefinancialstatementsarerequired by

lawtogivea

trueandfairviewofthestateofaffairsofIconicanditsresultsforthatperiod.



Inpreparingthesefinancialstatements,theDirectorsarerequiredto:



 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EuropeanUnion;and

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

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



TheDirectorsareresponsibleforkeepingadequateaccountingrecordsthataresufficient

toshowandexplain

Iconic’stransactionsand disclosewithreasonableaccuracyatanytime thefinancial positionofIconic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Iconic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 Iconic’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:



 Iconic’sfinancialstatements havebeenprepared inaccordancewith internationalFinancialReporting

Standards(IFRS)asadoptedbytheEuropeanUnion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Iconic;and

 theannualreportincludesafairreviewofthedevelopmentandperformanceofthebusinessandthe

positionofIconic,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 Iconic’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



ICONICLABSPLC

INDEPENDENTAUDITOR’SREPORT

FORTHEYEARENDED30JUNE2021





Page26

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:20December2022



ICONICLABSPLC

INDEPENDENTAUDITOR’SREPORT

FORTHEYEARENDED30JUNE2021





Page27

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2021,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EuropeanUnion.

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2021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EuropeanUnion;

 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2021of£8,176,414(2020:£3,112,666),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

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.

ICONICLABSPLC

INDEPENDENTAUDITOR’SREPORT

FORTHEYEARENDED30JUNE2021





Page28

Giventheuncertaintiesnote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£150,000(2020: £93,000), basedon 5%ofadjustedgroup lossbefore tax.Materiality for the

parent

Company financialstatementsasa wholewasset at£130,000(2020:£46,000)basedon5% ofthe

adjustedlossbeforetax.



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

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

theauditmaterialityasadjusted

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

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



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

partytransactions

anddirectorsrenumeration.



WeagreedwiththeAuditCommitteetoreporttoitallidentifiederrorsinexcessof£13,000(2020:£4,600).

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 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.



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.

ICONICLABSPLC

INDEPENDENTAUDITOR’SREPORT

FORTHEYEARENDED30JUNE2021





Page29

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applic able

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European

Union.



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.



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.



ICONICLABSPLC

INDEPENDENTAUDITOR’SREPORT

FORTHEYEARENDED30JUNE2021





Page30

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 page 21 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

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.



ICONICLABSPLC

INDEPENDENTAUDITOR’SREPORT

FORTHEYEARENDED30JUNE2021





Page31

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:20December2022

ICONICLABSPLC

CONSOLIDATEDSTATEMENTOFCOMPREHENSIVEINCOME

FORTHEYEARENDED30JUNE2021





Page32



  Notes Yearended

30June

2021

£

 Yearended30

June

2020

£

Continuingoperations    

Revenue 509,171  107,303

 

Grossprofit  509,171  107,303

 

Administrativeexpenses 3 (3,577,595)  (2,357,3 66)

DirectcostsincurredinconnectionwithEHGOFfinancing

facility

3 (70,000)  (262,000)

Otheroperatingincome37,945  25,000

 

Operatingloss(3,100,479)  (2,487,0 63)

 

Financecosts  6 (4,593,154)  (353 ,120)

Lossbeforetaxation  (7,693,633)  (2,840,1 83)

 

Taxation 7 ‐ ‐

Lossfortheperiodfromcontinuingoperations(7,693,633)  (2,840,183)

 

Profit/(loss)fortheperiodfromdiscontinuedoperations 5 (3,6 73)  450,062

 

Lossfortheperiod  (7,697,306)  (2,390,121)

 

Totalcomprehensivelossfortheperiod(7,697,306)  (2,390,1 21)



Lossperordinaryshare 8  

Basicanddiluted

‐ fromcontinuingoperations

‐ fromdiscontinuedoperations

 

(0.00)





(0.00)

 

Theloss forthe yearandtotal comprehensivelossfor the yearare whollyattributable totheequityholders ofthe

parent.

ICONICLABSPLC

CONSOLIDATEDSTATEMENTOFFINANCIALPOSITION

ASAT30JUNE2021





Page33

 







Notes

 30June

2021

£

 30June

2020

£

Assets

Non‐currentassets

   

Property,plantandequipment  9 ‐  22, 590

Intangibleassets  10 1  21,600

Totalnon‐currentassets   1  44,190

    

Currentassets     

Tradeandotherreceivables  12103,126  136,135

Cashandcashequivalents  13 50,929  180,397

   154,055  316,532

     

Totalassets   154,056 360,722

    

Equity     

Sharecapital  144,450,50 6  4,138,936

Sharepremium  157,900,77 8  5,578,789

Retaineddeficit  15(20,527,697)  (12,830,391)

  (8,176,413)  (3,1 12,666)

     

Liabilities     

Currentliabilities     

Tradeandotherpayables  165,881,46 9  1,699,794

Loansandborrowings  172,415,00 0  1,739,594

Provisions  18 34,000  34,000

  8,330,469  3,473,388

Totalliabilities   8,330,469  3, 473,388

    

Totalequityandliabilities   154,056 360,722



ThefinancialstatementsofIconicLabsplcwereapprovedbytheBoardandauthorisedforissueon20December2022.Theywere

signedonitsbehalfby:



………………………………………

BradTaylor

Director



ICONICLABSPLC

CONSOLIDATEDSTATEMENTOFCHANGESINEQUITY

FORTHEYEARENDED30JUNE2021





Page34

 



Share

capital

£



Share

premium

£



Retained

deficit

£



Total

Equity

£

 

Balanceat30June2019 3,498,257 5,124,900 (10,440,270) (1,817,113)

 

Lossfortheperiod‐

‐ (2,390,121) (2,390,121)

Totalcomprehensivelossfortheperiod

‐



‐



(2,390,121)



(2,390,121)

Transactionswithowners:



Issueofshares 640,679

453,889‐1,094,568

Costsofplacings‐

‐ ‐ ‐

Totalcontributionbyanddistributiontoowners

640,679



453,889



‐



1,094,568





Transferbetweenreserves ‐

‐ ‐ ‐

 



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)

Foreignexchangetranslation‐

‐ ‐ ‐

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)



ICONICLABSPLC

CONSOLIDATEDSTATEMENTOFCASHFLOWS

FORTHEYEARENDED30JUNE2021





Page35



 

 

Notes

Yearended

30June

2021

£

Yearended

30June

2020

£

Cashflowsfromoperatingactivities 

   

Totalcomprehensivelossfortheperiod

 (7,697,3 06)  (2,390,1 21)

(Profit)/Lossfromdiscontinuedoperations

5 3,673  (450,062)

(Profit)/Lossfromsaleoftangibleassets

 20,0 86 ‐

Impairmentofintangibleassets

 21,5 99 

Depreciation  

 2,504 2,503

Financecosts

6 4,593,154 353,120



(3,056,2 90) (2,484,5 60)



  

Decrease/(increase)intradeandotherreceivables

 33,0 09 (120,213)

(Decrease)/increaseintradeandotherpayables

4,181,675 1,212,679

(Decrease)inprovisions

 ‐ (6,000)

Operatingcashflowsusedbycontinuingactivities

 1,158,394 (1,398,0 94)

Operatingcashflowsgeneratedfrom/(usedby)discontinuedoperations

 (3,673) (204,561)

Netcashusedinoperatingactivities

 1,154,721 (1,602,6 55)



  

Cashflowsfrominvestingactivities 

   

Purchaseofproperty,plantandequipment

 9 ‐ (18,000)

Purchaseofintangibleassets

 10 ‐ (21,600)

Investingcashflowsusedbycontinuingactivities 

  ‐ (39,600)

Investingcashflowsusedbydiscontinuedoperations 

  ‐ ‐

Netcashusedininvestingactivities

  ‐ (39,600)



   

 

   

Cashflowsfromfinancingactivities 

   

Interestpaid

 6(4,593,1 54)  (353,120)

Repaymentofleases

 17 (31,981) (47,438)

Loanfromdirector

  ‐ 16,000

Repaymentofloanfromdirector

 17 (12,613) (3,387)

Issueofsharecapital

 14 2, 717,793 ‐

Costofissuingsharecapital

  (84,234) ‐

Issueofconvertibleloan

notes

 17 720,000 2 ,195,000

Financingcashflowsfromcontinuingactivities 

 (1,284,189) 1,807, 055

Financingcashflowsusedbydiscontinuedoperations 

  ‐ ‐

Netcashflowsfromfinancingactivities 

 (1,284,189) 1,807, 055

 

   

Netincrease/(decrease)incashandcashequivalents 

  (12 9,468) 164,800

 

   



Cashandcashequivalentsatbeginningofperiod



  

180,397



15,597

Cashandcashequivalentsatperiodend

 13 50,929 180,397

ICONICLABSPLC

COMPANYSTATEMENTOFFINANCIALPOSITION

ASAT30JUNE2021





Page36

 

Notes

30June

2021

£

30June

2020

£

Non‐currentassets   

Property,plantandequipment 9 ‐  4,590

Investments 11 2  2

Non‐currentassets  2  4,592



Currentassets

  

Tradeandotherreceivables 12 400,795  9,116

Cashandcashequivalents 13 838  144,138

  401,633  153,254

   

Totalassets  401,635 157,846

 

Equity   

Sharecapital 14 4,450,506  4,138,936

Sharepremium 15 7,900,778  5,578,789

Retaineddeficit 15(19,886,206)  (12,524,595)

 (7,534,922)  (2,806,870)

   

Currentliabilities   

Tradeandotherpayables 16 5,521,557  1,225,122

Loansandborrowings 17 2,415,000  1,739,594

  7,936,557  2,964,716

Totalliabilities  7,936,557  2,964,716

 

Totalequityandliabilities  401,635 157,846



The Company’s loss and total comprehensive loss for the year ended 30 June 2021 was £7,361,611 (30 June 2020:

£2,338,454)



The financialstatements of Iconic Labs plc,company number10197256, were approvedby theBoard and authorised for

issueon20December2022.Theyweresignedonitsbehalfby:



…………………………………………

BradTaylor

Director

ICONICLABSPLC

COMPANYSTATEMENTOFCHANGESINEQUITY

FORTHEYEARENDED30JUNE2021





Page37

 

Share

capital

£



Share

premium

£



Retained

deficit

£



Total

equity

£



Balanceat30June2019 3,498,257 5,124,900 (10,186,141) (1,562,984)



Lossfortheperiod‐‐(2,338,454) (2,338,454)

Totalcomprehensivelossforperiod‐‐(2,338,454) (2,338,454)

Transactionswithowners

Issueofshares 640,679 453,889‐1,094,568

Totalcontributionsbyanddistributionsto

owners 640,679 453,889‐1,094,568



Transferbetweenreserves



‐



‐



‐

  

Balanceat30June2020 4,138,936 5,578,789 (12,524,595) (2,806,870)

  

Lossfortheyear‐‐(7,361,611) (7,361,611)

Totalcomprehensivelossforyear‐‐(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 2,321,889‐2,633,559

  

Balanceat30June2021 4,450,506 7,900,778 (19,886,206) (7,534,922)



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page38

1. AccountingPolicies

Basisofpreparation

ThesefinancialstatementshavebeenpreparedinaccordancewithInternationalFinancialReportingStandards

asadoptedbytheEuropeanUnion(“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.

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.

ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021

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

Page39

1. AccountingPolicies(Continued)

Basisofconsolidation(Continued)

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2021,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.



SaleofServices



Duringthe2020financialyearthecompanyenteredintoacontracttodelivermanagement

servicestoadigital

andsocialpublisher.Withregardstotheprovisionofsaidservices,apriceisagreedinadvanceandtheseservices

areprovidedoverthetermofthecontract.Revenueisrecognisedonastraightlinebasisoverthetermofthe

contractandtheclientis

billedmonthlyinarrears.Thecontractalsocontainsavariableelementofrevenue.The

companyisentitledtoaprofitshareonarolling3monthbasis.Thecompanywouldinvoicethecustomerfor

theprofitshareonaquarterlybasis.Theincomewouldberecognised intheperiodthatthe

profitwasmadeby

the customer. Any profit share due for the period which was not invoiced until after the period end will be

includedinaccruedincome.

Revenuethathasbeenbilledtotheclient,butwhichisyettobepaidisaccruedwithintradereceivables.



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page40

1. AccountingPolicies(Continued)

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.

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.



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page41

1. AccountingPolicies(Continued)

Taxation(Continued)

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.

Property,plantandequipment

Itemsof plantandequipmentare initiallyrecognised atcost. Aswellas purchaseprice, costincludes directly

attributablecosts.

Depreciationisprovidedonallitems of

property,plantandequipment,soas towriteofftheircarryingvalue

overtheirexpectedusefuleconomiclives.Itisprovidedatthefollowingrates:



Plant&Machinery‐ 33%straightlinebasis

LeaseholdImprovements‐ 33%straightlinebasis

ComputerHardware‐ 33%straightlinebasis

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 property, plant and equipment and

intangible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.



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021



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Page42

1. AccountingPolicies(Continued)

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.

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approach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.



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page43

1. AccountingPolicies(Continued)

Tradeandotherreceivables(Continued)

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,leases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.

 Tradepayablesandothershort‐termmonetaryliabilities,whichareinitially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;



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page44

1. AccountingPolicies(Continued)

Leasedassets(Continued)

 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

Inthecurrentyear,theGroup

hasappliedanumberofamendmentstoStandardsandInterpretationsissuedby

theIASBthatareeffectiveforanannualperiodthatbeginsonorafter1January2020.Thesehavenothadany

materialimpactontheamountsreportedforthecurrentandprioryears:



- AmendmentstoReferencesto

theConceptualFrameworkinIFRSStandards

- AmendmentstoIFRS3:DefinitionofaBusiness

- AmendmentstoIAS1andIAS8:DefinitionofMaterial

- Covid‐19RelatedRentConcessions(AmendmenttoIFRS16).

Newstandards,interpretationsandamendmentsnotyeteffective

The following Adopted IFRSs have been issued but

 have not been applied by the Group in these financial

statements,allofwhichareeffectivefortheaccountingperiodcommencing1January2022.Theiradoptionis

notexpectedtohaveamaterialeffectonthefinancialstatementsunlessotherwiseindicated:



- NarrowscopeamendmentstoIFRS3,IAS16

andIAS27

- AnnualimprovementstoIFRSStandards2018–2020

- AmendmentstoIAS1:ClassificationofLiabilitiesasCurrentornonCurrent



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.



From1January2021thecompanywillapplyUK‐adoptedIAS.Atthedateofapplication,bothUK‐adoptedIAS

andEU‐adoptedIFRSwillbethesame.



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:



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page45

2. CriticalAccountingEstimatesandJudgements(Continued)

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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.

3. LossfromOperations

 

Yearended

30June

2021

£



Yearended

30June

2020

£

Thelossfortheperiodisstatedaftercharging:



Depreciation 2,504 2,503

Auditorsremuneration–auditservices 50,000 40,000

Auditorsremuneration–corporatefinanceservices‐63,500



Expensesbynature: £ £

Legalandprofessionalfees 911,787 632,978

Consultancyfees 1,053,856 213,098

Othersuppliesandexternalservices 444,473 359,101

Staffcosts 1,164,975 999,686

Totaloperatingexpenses 3,575,091 2,204,863

Depreciation,amortisationandimpairmentofassets 2,504 2,503

Impairmentofloans‐150,000

Totaladministrativeexpenses 3,577,595 2,357,366

DirectcostsinconnectionwithEHGOFfinancingfacility 70,000 262,000

Otherpenalties 4,593,154‐

 8,240,749 2,619,366

ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page46

4. StaffCosts



Yearended

30June

2021

£



Yearended

30June

2020

£

Staffcosts(includingdirectors)comprise:

Wagesandsalaries 1,128,545 905,958

Definedcontributionpensioncost (150) 25,370

Socialsecuritycontributionsandsimilartaxes 36,580 68,358

Staffcostsrelatingtocontinuingactivities 1,164,975 999,686



EmployeeNumbers

 

Theaveragenumberofstaffemployedbythegroupduringtheperiodamountedto:

Generalandadministration 3 7

 3 7

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19.



5. Discontinuedoperations

In

March2019theBoardmadethedecisiontodiscontinuethestemcellresearchoperations.Theoperatingloss

untilthedateofdiscontinuationoftheoperationsissummarisedasfollows:

 

Yearended

30June

2021



Yearended

30June

2020

 £ £

Revenue ‐ ‐

Administrativeexpenses–writebackof

creditorbalances (3,673) 450,062

Operatingprofit/(loss) (3,673) 450,062

 

Taxation ‐ ‐

Profit/(loss)fortheperiod (3,673) 450,062

 

Othercomprehensiveexpense‐‐

Totalcomprehensiveprofit/(loss)fortheperiod (3,673) 450,062

 



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page47

6. FinanceCosts

 Yearended

30June2021

£

Yearended

30June2020

£

Financecosts 

Penaltiesonredemptionofconvertibleloannotes ‐ 277,380

Penaltiesonmakewholeagreement‐72,000

Otherloanpenalties 4,592,522‐

Interestonleases 632 3,740

Totalfinanceexpense 4,593,154 353,120

7. Taxation

 Yearended

30June2021

£

Yearended

30June2020

£

 

Currenttax ‐ ‐

Totalcurrenttax ‐ ‐



Thereasonforthedifferencebetweentheactualtaxchargefortheperiodandthestandardrateofcorporation

taxintheUnitedKingdomappliedtolossesfortheperiodareasfollows:



Yearended

30June2021

£



Yearended

30June2020

£

Lossbeforetaxation (7,694,775)

(2,390,121)

Taxusingtheparentcompany’sdomestictaxrateof19%(2019:19%) (1,462,007) (454,123)

Effectsof: 

Unrelievedtaxlossesandotherdeductionsarisingintheperiod 1,462,007 383,779

Expensesnotdeductiblefortaxationpurposes‐70,344

Totaltaxchargedintheincomestatement‐‐

Thedeferredtaxationattributabletolossesarisingintheyearandforlossescarriedforwardhasnotbeenrecognised

intheseaccountsduetotheuncertaintyoverwhetherthiswillberecovered.

8. Losspershare



Yearended

30June2021

£



Yearended

30June2020

£

Numerator 

Lossfortheperiod (7,697,306) (2,390,121)

Denominator 

WeightedaveragenumberofordinarysharesusedinbasicEPS 22,750,589,218 2,500,412,604

Basicanddilutedlosspershare

‐continuingoperations

‐discontinuedoperations



(0.00)



(0.00)



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page48

9. Property,plantandequipment

Group

 Plant&

Machinery

£

Leasehold

Improvements

£

Computer

Hardware

£



Total

£

Cost

Balanceat30June2020 355,772 185,849 83,095 624,716

Additions 18,000‐‐‐

Balanceat30June2020 373,772 185,849 83,095 624,716



Disposals (373,772) (185,849) (83,095) (624,716)

Balanceat30June2021‐‐‐‐

 

Amortisation 

Balanceat30June2019 355,772 185,849 76,002 617,623

Chargefortheperiod‐‐2,503 2,503

Impairmentintheperiod‐‐‐‐

Balanceat30June2020 355,772 185,849 78,505 620,126

 

Chargefortheyear‐‐2,504 2,504

Eliminatedondisposal (355,772)

(185,849)

(81,009) (622,630)

Balanceat30June2021‐

‐

‐ ‐



Carryingamounts 

Balanceat30June2021 ‐ ‐ ‐ ‐

Balanceat30June2020 18,000‐4,590 22,590

Rightofuseasset

ThegroupdoesnotleaseanybuildingsorequipmentwhicharerequiredtobedisclosedunderIFRS16.

ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page49

9. Property,plantandequipment(continued)

Company

 Computer

Hardware

£



Total

£

Cost

Balanceat30June201976,921 76,921

Additions‐‐

Balanceat30June202076,921 76,921



Disposals(76,921) (76,921)

Balanceat30June2021‐‐

 

Amortisation 

Balanceat30June201969,828 69,828

Chargefortheperiod2,503 2,503

Impairmentinperiod‐‐

Balanceat30June202072,331 72,331

 

Chargefortheyear2,504 2.504

Eliminatedondisposal(74,835) (74,835)

Balanceat30June2021‐‐



Carryingamounts 

Balanceat30June2021   ‐ ‐

Balanceat30June20204,590 4,590

ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page50

10. IntangibleAssets

 Intellectual

Property

£

Computer

software

£



Total

£

Cost    

Balanceat30June2019‐139,106 139,106

Additions21,600‐39,600

Balanceat30June202021,600 139,106 178,706



Disposals‐(139,106) (139,106)

Balanceat30June2021 21,600‐21,600



Amortisation    

Balanceat30June2019‐‐‐

Impairment‐139,106 139,106

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

21,599

‐ 21,599



Carryingamounts    

Balanceat30June2021  1‐1

Balanceat30June202021,600‐21,600



11. Investments



Company

 30June

2021

£

30June

2020

£

Investmentsinsubsidiaries 2 2

 

 2 2

ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page51

11. Investments(continued)

Subsidiariesasat30June2021:



Entity



Registeredofficeaddress

Countryof

incorporation

Natureof

business



Notes

WideCellsInternationalLimited 7BellYard,London,WC2A2JR UnitedKingdom Holdingcompany (c)

WideCellsLimited 3FieldCourt,Gray’sInn,

London,WC1R5EF

UnitedKingdom Inliquidation (a)

WideCellsPortugalSA RuaDaCasaBranca,97

Coimbra3030‐109,Portugal

Portugal Tradingcompany (a)

WideCellsEspanaSL CalleCastillodeFuensaldana,4,

28232LasRozas,Madrid

Spain Inliquidation (a)

WideAcademyLimited 7Bell

Yard,London,WC2A2JR UnitedKingdom Dormant

company

(a)

CellPlanLimited 7BellYard,London,WC2A2JR UnitedKingdom Dormant

company

(a)

CellPlanInternationalLda EdificioTowerPlazaRotunda

Eng,EdgarCardoso,no.23,11

F,4400‐676VilaNovadeGaia,

Portugal



Portugal Dormant

company

(b)

IconicLabsUKLimited 7BellYard,London,WC2A2JR UnitedKingdom Tradingcompany (c)

IconicLabsIPLimited 7BellYard,London,WC2A2JR UnitedKingdom Tradingcompany (c)

NuucoMediaLimited 7BellYard,London,WC2A2JR UnitedKingdom Tradingcompany (d)

CoalitionMedia

Limited 7BellYard,London,WC2A2JR UnitedKingdom Dormant

company

(f)

Associates



Entity

Registeredofficeaddress Countryof

incorporation

Natureof

business



Notes

MediumChannelMediaLimited 7BellYard,London,WC2A2JR UnitedKingdom Dormant

company

(e)



Notes: (a)100%ownedbyWideCellsInternationalLimited (b)100%ownedbyCellPlanLimited

 (c)100%ownedbyIconicLabsplc  (d)100%owned byIconicLabsUKLimited

 (e)24%ownedbyIconicLabsplc  (f)50%ownedbyiconicLabsUKLimited



FromSeptember2019,WidecellsLimited

hasbeenplacedintoliquidation.

FromNovember2019,WidecellsEspanahasbeenplacedintoliquidation.



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page52

12. Tradeandotherreceivables



Group

 30June

2021

£

30June

2020

£

Tradereceivables 100,000 110,409

Otherreceivables 3,126 25,726

Totalreceivables 103,126 136,135



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2021and30June2020.

Company

 30June

2021

£

30June

2020

£

Amountsduefromgroupcompanies 398,185‐

Otherreceivables 2,610 9,116

 400,795 9,116



13. Cashandcashequivalents

 Group

 30June

2021

£

30June

2020

£

Cashatbankavailableondemand 50,929 180,397

Bankoverdraft ‐ ‐

Totalcashandcashequivalents 50,929 180,397



Company

 30June

2021

£

30June

2020

£

Cashatbankavailableondemand 838 144,138

Totalcashandcashequivalents 838 144,138





ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page53

14. ShareCapital



 30June2021 30June2020

 Number £ Number £

Authorised, allotted and fully paid –

classifiedasequity



Ordinarysharesof£0.0025each‐‐‐‐

Ordinarysharesof£0.00001each 37,405,248,039 374,052 6,248,241,015 62,482

Deferredsharesof£0.00249each 1,637,129,904 4,076,454 1,637,129,905 4,076,454

Total 39,042,377,943

4,450,506 7,885,370,920 4,138,936

At 1 July 2020 the company had 6,248,241,015 Ordinary shares of £0.00001 in issue. During the period, the

companyissued31,166,999,985Ordinarysharesof£0.00001asfollows:



 13July2020–2,000,000,000sharesissued,atapremiumof0.008ppershare;

 30July2020–1,555,555,554sharesissued,

atapremiumof0.008ppershare;

 17August2020–1,857,142,857sharesissued,atapremiumof0.006ppershare;

 2September2020–2,428,571,428sharesissued,atapremiumof0.006ppershare

 14September2020–3,428,571,428sharesissued,atapremiumof0.006pper

share;

 25September2020–5,000,000,000sharesissued,atapremiumof0.006ppershare;

 14October2020–4,555,555,555sharesissued,atapremiumof0.008ppershare;

 16October2020–2,100,000,000sharesissued,atapremiumof0.009ppershare;

 16October2020

–1,999,999,999sharesissued,atapremiumof0.006ppershare;and

 20November2020–6,231,610,203sharesissued,atapremiumof0.011ppershare.

At30June2021,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.



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page54

14. ShareCapital(continued)

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.



15. 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

16. Tradeandotherpayables

Group

30June

2021

£

30June

2020

£

Tradepayables  821,249 587,747

Otherpayables  4,660,251 620,931

Accruals95,621 328,713

Taxandsocialsecurity304,348 162,403

Total5,881,469 1,699,794

Bookvaluesapproximatetofairvaluesat30June2021and30June2020.

Company

30June

2021

£

30June

2020

£

Tradepayables  775,376 539,418

Otherpayables  4,657,060 592,824

Accruals89,121 92,880

Taxandsocialsecurity  ‐ ‐

5,521,557 1,225,122

Bookvaluesapproximatetofairvaluesat30June2021and30June2020.



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page55

17. Loansandborrowings

Group



Current

 30June

2021

£

30June

2020

£

Leases‐31,981

Directors’loans  ‐ 12,613

Convertibleloans2,415,000 1,695,000

Total2,415,000 1,739,594

Bookvaluesapproximatetofairvaluesat30June2021and30June2020.

Duringtheyear,thecompanyissuedconvertibleloannotestotalling£720,000.At30June2021,£2,415,000wasstill

outstandingandincludedwithinloansandborrowings.

Leasesweresecuredontherelevantassets.

Company



Current

 30June

2021

£

30June

2020

£

Leases‐31,981

Directors’loans‐12,613

Convertibleloans2,415,000 1,695,000

Total2,415,000 1,739,594



18. Provisions



 30June

2021

£

30June

2020

£

Provisionsbroughtforward34,000 40,000

Provisionforcostsrelatingtoliquidationofsubsidiary

undertakings



‐



‐

Releasedagainstcostsintheperiod  ‐ (6,000)

Provisionscarriedforward34,000 34,000

TheGrouphasmadethedecisiontoceasestemcellresearchoperations.Thishasledtonumberofsubsidiary

undertakingsbeing liquidated.A provision for theanticipatedcosts relatingto theliquidationare includedin

thesefinancialstatements.



19. FinancialInstruments–RiskManagement



Thegroupisexposedthroughits

operationstothefollowingfinancialrisks:



 Creditrisk

 Marketrisk

 Liquidityrisk



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page56

19. FinancialInstruments–RiskManagement(continued)



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:

 2021

£

2020

£

Cashandcashequivalents 50,929 180,397

Tradeandotherreceivables 103,126 136,135

Totalfinancialassets–amortisedcost 154,055 316,532



 2021

£

2020

£

Tradeandotherpayables 5,881,469 1,699,794

Loansandborrowings 2,415,000 1,739,594

Totalliabilities–amortisedcost 8,269,469 3,439,388



Company: 2021

£

2020

£

Cashandcashequivalents‐144,138

Tradeandotherreceivables 400,795 9,116

Totalfinancialassets–amortisedcost 400,795 153,254



 2021

£

2020

£

Tradeandotherpayables 5,520,417 1,225,122

Loansandborrowings 2,415,000 1,739,594

Totalliabilities–amortisedcost 7,935,417 2,964,716



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.



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page57

19. FinancialInstruments–RiskManagement(continued)



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

 2021

£

2020

£

CashheldatHSBC

–

S&PRatingAA 46,746 176,214

CashheldatSantander

–

S&PratingA 4,183 4,183

Totalfinancialassets 50,929 180,397



Company

 2021

£

2020

£

CashheldatHSBC

–

S&PRatingAA 838 144,138

Totalfinancialassets 838 144,138



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2021thegroup’sexposuretoforeignexchangeriskwasnotmaterialastheoverseasoperations

hadbeendiscontinued.



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:



2021



Upto

3months

£

Between

3and

12

months

£

Between

1and2

years

£

Between

2and5

years

£

Over5

years

£

Tradeandotherpayables 5,881,469‐‐‐‐

Leases‐‐‐‐‐

Borrowings 2,415,000‐‐‐‐

Total 8,296,469‐‐‐‐



ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page58

19. FinancialInstruments–RiskManagement(continued)



2020



Upto

3months

£

Between

3and12

months

£

Between

1and2

years

£

Between

2and5

years

£

Over5

years

£

Tradeandotherpayables 1,141,178 67,500‐‐‐

Leases 28,877 3,104‐‐‐

Borrowings

1,695,000 12,613‐‐‐

Total 2,865,055 83,217‐‐‐



Moredetailsinregardtothelineitemsareincludedintherespectivenotes:



 Tradeandotherpayables–note16

 Loanandborrowings–note17



Atthebalancesheetdate,theGrouphadliabilitiesdueforsettlementwithin3monthsof£8,296,469,compared

to a

cash balance of £50,929. Since the year end, the Group has negotiated settlements on all outstanding

disputes, finalised a CVA with the Joint Administrators and the critical, preferential, secured, and unsecured

creditorsandagreedtofinancingtermswithEHGOSFtosupporttheCompany.



£2,415,000ofborrowingsre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12‐16.





Atpresentthedirectorsdonotintendtopaydividendsbutwillreconsiderthepositioninfutureperiods,asthe

groupbecomesprofitable.



Reconciliationofmovementinnetcash

 



Netcashat01

July2020



Cashflow



Loannotes

issuedinthe

period

Repaymentof

borrowings

(continuing

activities)



Newloans

inthe

period



Netcash

at30June2021

 £ £ £ £ £ £

    

Cashatbankand

inhand

180,397

(129,468)‐‐‐50,929

Borrowings (1,739,594)‐(720,000) 44,594‐(2,415,000)



    

Totalfinancial

liabilities

(1,559,197) (129,468) (720, 000) 44,594‐(2,364,071)



    

ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page59

19. FinancialInstruments–RiskManagement(continued)

 



Netcashat01

July2019



Cashflow



Loannotes

issuedinthe

period



Loannotes

convertedinthe

period

Repaymentof

borrowings

(continuing

activities)



Newloans

inthe

period



Netcash

at30June

2020

 £ £ £ £ £ £ £

     

Cashatbankand

inhand

15,597 164,800‐ ‐‐‐180,397

Borrowings (79,419)‐(2,195,000) 500,000 47,438 (12,613) (1,739,594)



     

Totalfinancial

liabilities

(63,822) 164,800 (2,195,000) 500,000 47,438 (12,613) (1,559,197)



     

      

20. RetirementBenefits

Thegroupoperatesadefinedcontributionpensionschemeforthebenefitofitsemployees.Theassetsofthe

schemearetobeadministeredbytrusteesinfundsindependent fromthoseofthegroup.



21. Leases

The group was leasing the more expensive pieces of laboratory equipment for

the stem cell processing and

storagefacilityinManchester.Thefuturepaymentsareasfollows:



Group:



2021

Minimumlease

payments

£



Interest

£

Present

value

£

Notlaterthanoneyear‐‐‐

Betweenoneyearandfiveyears‐‐‐

Laterthanfiveyears‐‐‐

‐‐‐

Currentliabilities‐

Non‐currentliabilities‐



2020

Minimumlease

payments

£



Interest

£

Present

value

£

Notlaterthanoneyear 31,981 632 31,349

Betweenoneyearandfiveyears‐‐‐

Laterthanfiveyears‐‐‐

 31,981 632 31,349

Currentliabilities31,349

Non‐currentliabilities‐



Company:



2021

Minimumlease

payments

£



Interest

£

Present

value

£

Notlaterthanoneyear‐‐‐

Betweenoneyearandfiveyears‐‐‐

Laterthanfiveyears‐‐‐

‐‐‐

Currentliabilities‐

Non‐currentliabilities‐

ICONICLABSPLC

NOTESTOTHEFINANCIALSTATEMENTS

FORTHEYEARENDED30JUNE2021





Page60

21. Leases(Continued)



2020

Minimum

lease

payments

£



Interest

£



Present

value

£

Notlaterthanoneyear 31,981 632 31,349

Betweenoneyearandfiveyears‐‐‐

Laterthanfiveyears‐‐‐

 31,981 632 31,349

Currentliabilities31,349

Non‐currentliabilities‐





22. Capitalcommitments



Iconichadnocapitalcommitmentsat30June2021or30June2020.



23. RelatedpartyTransactions



DetailsofDirectors’remunerationaregivenintheRemunerationReport.



24. ContingentLiabilities



Iconichadnocontingentliabilitiesat30June2021or30

June2020.



25. PostBalanceSheetEvents



 Inthefourth quarterof2022exitedadministration. Further detailscan befoundin theChief Executiveand

Chairmans’Statement.



26. UltimateControllingParty



TheDirectorsdonotconsiderthatthereisanultimatecontrollingpartyofIconic.