Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Lease liabilities and similar

v3.22.1
Lease liabilities and similar
12 Months Ended
Dec. 31, 2021
Lease liabilities [abstract]  
Lease liabilities and similar
15 Lease liabilities and similar

 

Maturity analysis of leases and similar

 

December 31, 2021  

Undiscounted lease

payments

    Interest    

Present

value

 
    £     £     £  
Not later than one year     1,010,039       244,281       765,758  
Between one year and five years     1,849,762       525,317       1,324,445  
More than five years     893,077       80,647       812,430  
Lease Liabilities     3,752,878       850,245       2,902,633  

 

 

TC BIOPHARM (HOLDINGS) PLC

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

 

15. Lease liabilities and similar (continued)

 

December 31, 2020  

Undiscounted lease

payments

    Interest    

 

Present

value

 
    £     £     £  
Not later than one year     693,568       250,866       442,702  
Between one year and five years     2,094,976       645,725       1,449,251  
More than five years     1,340,753       207,604       1,133,149  
Lease Liabilities     4,129,297       1,104,195       3,025,102  

 

The balances relating to lease liabilities and similar can be further analyzed as follows:

 

Lease liabilities

  

December 31, 2021  

Undiscounted lease

payments

    Interest    

Present

value

 
    £     £     £  
Not later than one year     768,839       227,630       541,209  
Between one year and five years     1,793,412       523,560       1,269,852  
More than five years     893,077       80,647       812,430  
Lease Liabilities     3,455,328       831,837       2,623,491  

 

December 31, 2020  

Undiscounted lease

payments

    Interest    

Present

value

 
    £     £     £  
Not later than one year     452,367       214,429       237,938  
Between one year and five years     1,797,426       627,316       1,170,110  
More than five years     1,340,753       207,604       1,133,149  
Lease Liabilities     3,590,546       1,049,349       2,541,197  

 

The principal leasing activities undertaken by the Group relate to the lease of property for the business.

 

An incremental borrowing rate of 8.60% has been applied to leases during the reporting period.

 

In addition, the Group undertakes some sale and leaseback transactions to secure financing. From a review of the sale and leaseback agreements, it is deemed that as no formal sale has occurred the Group continues to recognize the asset on the balance sheet with a corresponding liability stated at amortized cost. Liabilities in relation to sale and leaseback transactions totaled £279,142 (2020: £483,905) and are included in the above tables. There were no gains or losses recognized on sale and leaseback transactions in the period.

 

Sale and leaseback arrangements

 

In addition, the Group undertakes some sale and leaseback transactions to secure financing. From a review of the sale and leaseback agreements, it is deemed that as no formal sale has occurred the Group continues to recognize the asset on the balance sheet with a corresponding liability stated at amortized cost. There were no gains or losses recognized on sale and leaseback transactions in the period.

 

 

TC BIOPHARM (HOLDINGS) PLC

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

 

15. Lease liabilities and similar (continued)

Schedule of maturity analysis 

December 31, 2021  

Undiscounted lease

payments

    Interest    

 

Present

value

 
    £     £     £  
Not later than one year     241,200       16,651       224,549  
Between one year and five years     56,350       1,757       54,593  
Lease Liabilities     297,550       18,408       279,142  

 

December 31, 2020  

Undiscounted lease

payments

    Interest    

 

Present

value

 
    £     £     £  
Not later than one year     241,200       36,437       204,763  
Between one year and five years     297,550       18,408       279,142  
      538,750       54,845       483,905  

 

Set out below are the carrying amounts of right-of-use assets recognized and the movements during the period:

 

   

Buildings

£

   

Other

£

   

Total

£

 
At January 1, 2020     1,764,297       14,379       1,778,676  
Charge for the year     (192,468 )     (4,108 )     (196,576 )
At December 31, 2020     1,571,829       10,271       1,582,100  
                         
At January 1, 2021     1,571,829       10,271       1,582,100  
Charge for the year     (192,469 )     (4,107 )     (196,576 )
At December 31, 2021     1,379,360       6,164       1,385,524  

 

The following amounts are recognized in the consolidated statements of comprehensive loss:

 

    Year ended
December 31,
    Year ended
December 31,
 
    2021     2020  
    £     £  
Amortization of right of use assets     196,576       196,576  
Interest on lease liabilities     254,653       292,062  
Total     451,229       488,638  

 

Total cash outflows in respect of leases were £122,469 (2020: £415,273 and 2019: £184,401). Receipt of cashflows in respect of sale and leaseback transactions totaled £Nil (2020: Nil and 2019: 319,937). Total cash outflows in respect of interest on leases were £254,653 (2020: £290,208 and 2019: £87,468).

 

 

TC BIOPHARM (HOLDINGS) PLC

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)