Loan - intercompany - - 498 -
Accruals 72,099 124,362 50,958 32,124
-------------- -------------- -------------- --------------
282,699 2,706,451 262,056 118,063
An unsecured loan of USD 2,000,000 (GBP1,238,160), from Brincan
Holdings SA, a company incorporated in the British Virgin Islands
was advanced to Nova Trans LLC in 2012.
The loan was guaranteed by Nova Resources Limited and the
guarantee remains in place after the disposal of Nova Trans LLC.
The carrying amount of the loan at disposal was USD 3,000,000.
Given that USD 200,000 has already been repaid by Nova Trans LLC
in March 2014 and a payment plan is currently being finalised for
the remaining balance of the loan, the directors consider the
possibility of Nova Resources Limited having to repay the loan on
behalf of Nova Trans LLC as being remote and thus no provision has
been made in these financial statements.
21. LONG TERM LIABILITIES
(i) On 28 August 2013 the Company raised GBP400,000 from the
issue of the convertible unsecured loan notes 2015. The salient
terms of the notes are as follows:
(a) The holder of the Notes has the right, but not the
obligation, to convert the principal amount outstanding to newly
issued Ordinary Shares in the capital of the Company at the
subscription rate of GBP0.01 for each Ordinary Share.
(b) There is no interest on the amount outstanding. If all or
part of the Notes is not converted by 31 December 2017, Nova shall
pay to the Note holder the principal.
On 8 October 2013, GBP230,000 of the notes were converted into
23,000,000 ordinary shares.
(ii) On 17 October 2013, the company satisfied outstanding
advisor's fees of GBP31,500 by the issue of GBP31,500 0%
convertible loan notes, repayable by 31 December 2014 or earlier at
a rate of GBP0.01 per share.
Group Company
2013 2012 2013 2012
GBP GBP GBP GBP
At 1 January 2013 50,000 - 50,000 -
Issued on 28 August 2013 400,000 60,000 400,000 60,000
Issued on 17 October 2013 31,500 - 31,500 -
Converted on 8 October
2013 (230,000) (10,000) (230,000) (10,000)
-------------- -------------- -------------- --------------
Balance at 31 December
2013 251,500 50,000 251,500 50,000
2013 2012
GBP GBP
Allocated as follows (Group and Company):-
Short term liabilities
(Note 20) 98,235 16,721
Transferred to shareholders'
equity
Loan note equity reserve 29,072 12,434
Included in long term liabilities 124,193 20,845
-------------- --------------
251,500 50,000
22. CALLED UP SHARE CAPITAL
Authorised Class Nominal 2013 2012
Number Value GBP GBP
500,000,000 Ordinary 1p 5,000,000 5,000,000
Allotted, issued and fully
paid
129,115,287 (2012 -106,115,287) Ordinary 1p 1,291,153 1,061,153
On 8 October 2013, GBP230,000 convertible loan notes were
converted to 23,000,000 ordinary shares as GBP0.01 per share.
Share - based payments
Details of the options and warrants issued are provided in the
Directors' Report and below. The details of the option scheme are
as follows:
2013 Weighted 2012 Weighted
average exercise average exercise
2013 Number price Pence 2012 Number price Pence
of options of options
Outstanding at
beginning of period 13,500,000 10 2,000,000 3
Options lapsed (7,000,000) - - -
in period
Options granted - - 11,500,000 -
in period
------------------ -------------- ------------------ --------------
Outstanding at
end of the period 6,500,000 7 13,500,000 10
None of the options above have been exercised and all remain
outstanding at the year end. There were no options granted during
the period.
Volatility has been estimated by taking the historic volatility
in the Company's share price over two years.
Warrants issued in the year are as follows:
Date of grant Exercise Number Period of exercise
price
20 June 2013 1.5p 3,000,000 20 June 2013 - 30 June 2018
28 August 28 August 2013 - 31 December
2013 1.0p 200,000,000 2018
Summary of warrants at the year end:
2013 Weighted 2012 Weighted
average average exercise
exercise 2012 Number price Pence
2013 Number price Pence of warrants
of warrants
Outstanding at beginning
of the period 42,857,143 2 30,000,000 2
Warrants granted
in period 203,000,000 3 12,857,143 -
Warrants lapsed
in the period (42,857,143) - -
------------------ ------------------ ------------------ ------------------
Outstanding at end
of the period 203,000,000 1 42,857,143 2
None of the warrants above have been exercised in the year. The
fair value of the warrants granted during the period has been
calculated using the Black Scholes model assuming the inputs shown
below:
Grant date June 2013
Share price at grant date 1.3p
Exercise price 1.5p
Expected warrant life in years 3
Risk free interest rate 1.12%
Expected volatility 30%
Expected dividend yield 0%
Fair value of option 0.11p
Volatility has been estimated by taking the historic volatility
in the Company's share price over one year.
The weighted average remaining contractual life of outstanding
share options and warrants is 5 years (2012: 1 year)
23. RECONCILIATION OF OPERATING LOSS TO CASH GENERATED FROM
OPERATIONS
Group Company Group Company
2013 2013 2012 2012
GBP GBP GBP GBP
Loss before interest
and tax (900,757) (425,219) (1,109,909) (478,257)
Provision for quoted
investment - - 117,787 117,787
Minority interests - - (1,100) -
Other income - - - -
-------------- -------------- -------------- --------------
(990,757) (425,219) (993,222) (360,470)
(Increase)/decrease in
inventories 19,288 (87,570) (19,288) -
(Increase)/decrease in
trade and
other receivables 721,646 93,978 (919,070) (1,157,789)
(Decrease)/increase in
trade and
other payables (246,513) - 2,613,715 35,822
Depreciation - - 96,867 -
Loss on disposal of fixed
assets (3,922) - 45,448 -
Share based payments 6,082 - 16,742 16,742
-------------- -------------- -------------- --------------
Cash generated from /
(consumed in) operations (500,258) (418,811) 841,192 (1,465,695)
24. FINANCIAL COMMITMENTS
Capital commitments
There was no capital expenditure that had been contracted for at
the balance sheet date but not yet incurred.
25. RELATED PARTY TRANSACTIONS
Nova Res. (LSE:NOVA)
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