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  44 01483 751577
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microsaic systems plc
annual report 2014
  
 
 
   
    
    
  
 
microsaic cover 4pp covermicrosaic cover 4pp cover  27032015  0928  page 2 microsaic systems is the innovative
hightechnology company developing
and marketing a new generation of
compact analysis equipment for
chemists
highlights 1
chairman’s statement 2
strategic report
company overview and business model 3
chief executive’s review 4
governance
board of directors 8
directors’ report 9
directors’ remuneration report 13
corporate governance report 15
financial statements
independent auditors’ report 18
statement of comprehensive income 20
statement of financial position 21
statement of changes in equity 22
statement of cash flows 23
notes to the financial statements 24
corporate information and advisors 42
annual general meeting
notice of annual general meeting 43
notes 45
microsaic cover 4pp covermicrosaic cover 4pp cover  27032015  0928  page 3 2014 highlights
• signing of two further oem agreements one with gilson
inc for our single quadruple unit the 4000 mid
®
 and a
second with a leading global scientific company for our
triple quadrupole mass spectrometry technology
• signing of an important agreement with plexus corp for
the manufacture of the 4000 mid
®
to meet increasing
demand
postperiod update
• signing of an oem agreement with ge healthcare for
both the 4000 mid
®
and our midas™ unit 
• signing of a distributor agreement with kinesis ltd for the
distribution of our 4000 mid
®
in the uk europe and india
financial summary
• revenue up 32 to £120 million 2013 £091 million
• placing of 10500000 ordinary shares raising
£441 million before costs
• cash at 31 december 2014 £455 million
2013 £324 million
microsaic systems plc annual report and financial statements 2014 1
highlights
microsaicpp0107  26032015  1549  page 1 i am pleased to present the company’s
annual report  financial statements for
the year ended 31 december 2014 
delivering on our strategic aims
we established a number of business objectives for 2014 to
underpin our ambitions and i am pleased to announce
progress in all areas as follows
an increased investment in marketing and communications
has been undertaken to promote your company its
products technologies and core brand values this has led
to an increasing amount of inbound interest in our
products from potential partners and customers we
anticipate this continuing as we move forward
in 2014 we signed two further oem agreements one is
with gilson inc for our single quadruple unit the 4000
mid® and a second with a leading global scientific
company for our triple quadrupole mass spectrometry
technology
in addition we signed an important agreement with plexus
corp for the manufacture of the 4000 mid
®
 this will
facilitate the scaling up of our production capabilities to
meet increasing demand it will enable your company to
optimise its potential now and in the future
our rd programmes remain key areas in which we
continue to invest and we were pleased to announce early
in 2014 the launch of the midas™ a compact interface
module this new product is intended to extend the use of
the 4000 mid
®
more widely throughout the scientific
research community further exciting rd programmes are
in various stages of planning and development to ensure
your company remains at the forefront of its chosen fields
financial results 
microsaic generated revenues of £120 million in 2014 an
increase of 32 over 2013 revenues £091 million the
growth in consumable revenue is particularly noteworthy
the loss before tax of £316 million 2013 loss of
£240 million is a result of a larger cost base and is a
reflection of our continued investment in the future of your
company as we lay the foundations and structures for a
successful commercial enterprise
shareholders 
the board is grateful for the ongoing support of
shareholders which allowed your board to raise further
funds of £41 million after expenses in october these will
provide the essential working capital required by your
company to finance its continuing growth and evolution
staff
on behalf of the board i would like to express my gratitude
to our staff for their hard work loyalty and for continuing to
innovate which is vital to the future success of the
company
in addition i am pleased to announce the appointment of
glenn tracey as chief operating officer this is a new and
important role given the increasing number of opportunities
now available to your company glenn will join the
management team and report directly to colin jump
the board
as previously announced andrew darby joined as our
finance director in april taking over from malcolm
bateman peter edwards technical director retired from the
board and company in july we thank both malcolm and
peter for their important contributions to the business and
wish them every success in the future
outlook
with the progress that the company made in 2014 and the
new announcements in 2015 the board remains confident
that microsaic is wellpositioned to capitalise on its
leadership in its chosen fields and grow the business over
the coming years 
colin nicholl
chairman
20 march 2015
2 microsaic systems plc annual report and financial statements 2014
chairman’s statement
for the year ended 31 december 2014
microsaicpp0107  26032015  1549  page 2 microsaic systems plc develops
microengineered analytical instruments that
are based on the scientific technique of
mass spectrometry ms ms is widely
accepted as one of the most reliable
methods for identifying the chemical
makeup of substances and microsaic is
the first and only company to have
commercialised and patented chipbased
ms technology using silicon
microengineering mems
the analysis method of choice
mass spectrometry is an established analytical technique
used in many laboratories which enables the accurate
identification and quantification of trace levels of chemical
or biological compounds by recording their unique
molecular weight today ms is the standard means of
measuring the composition of samples during
pharmaceutical development and is also widely used in
other industries including healthcare environmental safety
food and drink security petrochemicals and mining by
miniaturising ms to desktop size microsaic has made it
practical for a much wider range of users and applications
within these fields and opens up new opportunities to
capture value from the growing 39 billion ms market
a step change in laboratory capability
the company’s first product the microsaic 3500 mid
®

was launched in january 2011 and became the world’s
smallest ms system users are particularly impressed by the
selfcontained nature of the system – no other mass
spectrometer for liquid analysis has eliminated external
pumps and computers – and this gives the mid
®
a
revolutionary advantage in deployability ease of use and
cost of ownership these advantages have been recognised
within the wider industry too the 3500 mid
®
gained the
new product award from the us society of laboratory
automation and screening in 2011 and a prestigious rd
100 award in 2012 as one of the most technologically
significant products to enter the marketplace globally
several articles have been published in scientific journals
citing new discoveries made using the mid
®

continuing evolution
the successor to the 3500 mid
®
 the 4000 mid
®
was
launched in march 2013 at pittcon the world’s largest
annual conference and exposition on laboratory science
and scientific instrumentation the 4000 mid
®
has an even
smaller footprint than the 3500 mid
®
and fits even more
comfortably into a standard laboratory fume hood its ‘plug
 play’ components also enable users to maintain the
system themselves resulting in less downtime and greater
flexibility within the laboratory 
to further expand the marketplace for the 4000 mid
®
 in
january 2014 the company launched the midas™
compact interface module to extend the use of ms in the
laboratory from specialist analytical chemists to the wider
research community the midas™ connects to the 4000
mid
®
and offers automated sample preparation and
handling for direct ms analysis in real time at the lab bench
or in the fume hood
the company has an ongoing rd programme building
on the achievements already made and focused on
increasing the reach of its core ionchip
®
technology which
underpins the mid
®
 the product pipeline includes more
sophisticated ms systems that will allow the company to
address more technically demanding market areas such as
food and drink and environmental safety 
tapping into established sales channels through
valueadded partnerships
the company’s strategy is to generate revenue streams by
introducing compact deployable ms products based on its
patented chip technologies into a series of markets and
applications by selling through partnerships with existing
sales channels typically these sales channels will be
international suppliers of complementary equipment 
current partnerships are explained elsewhere in this report
further similar relationships are planned with other leading
suppliers of scientific equipment which will enable the
company to build up volume sales direct sales to end
users in niche application areas will also continue in
parallel and since the yearend an agreement with kinesis
a leading international supplier of analytical consumables
and equipment has been signed for distribution of
microsaicbranded 4000 mid
®
instruments in the uk
europe and india
manufacture of the nonchip based components of the
4000 mid
®
has been outsourced to plexus a leading
manufacturer to technology companies in preparation for
production scale up 
history of the company
microsaic systems was established in 2001 from the highly
regarded optical and semiconductor devices group at
imperial college london it has been based at
headquarters in woking uk since september 2004 and
was admitted to aim a market of the london stock
exchange in april 2011 ticker msys
microsaic systems plc annual report and financial statements 2014 3
strategic report – company overview and business model
for the year ended 31 december 2014
microsaicpp0107  26032015  1549  page 3 4 microsaic systems plc annual report and financial statements 2014
microsaic has enjoyed another highly
productive year in 2014 making good
progress in our ongoing evolution into a
successful commercial business we
continued to execute our strategy of
developing commercial partnerships with
international suppliers of complementary
equipment so that we can sell our products
through their existing sales channels in
parallel we made significant technological
advances that will in time give us the
capability needed for our next generation
of products these will further broaden the
range of applications that our miniaturised
mass spectrometry ms instruments can
address
our technology and our products
microsaic’s chipbased technology has allowed us to
miniaturise the mass spectrometer – the gold standard for
chemical analysis – far beyond any other product on the
market this miniaturisation greatly simplifies deployment
drastically reducing the overall cost of ownership and
makes ms much more accessible to lab scientists than it
has ever been before 
today we market two products our lead ms instrument is
the microsaic 4000 mid
®
 officially launched in march
2013 sales of this product increased during the year
mainly through our oem partner biotage ab which
features the 4000 mid
®
as a core component of its
isolera™ dalton instrument in january 2014 we launched
the midas™ compact interface module this unit has been
designed to extend the use of ms in the laboratory from
specialist analytical chemists to the wider research
community the midas™ unit connects to the 4000 mid
®
and offers automated sample preparation and handling for
direct ms analysis in realtime at the lab bench or in the
fume hood
commercial strategy
the main route to market for our product is as an original
equipment manufacturer oem through partnerships with
companies that have established global sales channels
these companies also have complementary products that
when combined with our product can deliver synergistic
benefits for the end users 
we signed additional agreements during 2014 with gilson
inc and with a leading global scientific company
our agreement with gilson is for our 4000 mid
®
to be
combined with gilson’s high performance liquid
chromatography instruments i am pleased to report that
initial units were shipped during january 2015 to gilson
where further development of the final combined product is
being conducted
our agreement with a leading global scientific company is
for our triple quadrupole technology for use in applied
markets triple quadrupole technology provides us with an
opportunity to extend the application of ms to the analysis
of more complex materials such as food medical or
environmental samples
since the yearend we have signed a further oem
agreement with ge healthcare for a customised version of
our 4000 mid
®
to be deployed together with the midas™
in combination with ge healthcare’s instruments as an
innovative new analytical instrument for use in research and
healthcare applications
strategic report – chief executive’s review
for the year ended 31 december 2014
microsaicpp0107  26032015  1549  page 4 microsaic systems plc annual report and financial statements 2014 5
while commercial sensitivities prevent us disclosing more
detail on the agreements we have signed or specific
applications being targeted we can state that we are
delighted with the high quality of our partners and the
strong working relationships we have established this gives
us confidence that resulting products have the best
opportunity to fulfil their commercial potential 
outsourcing the manufacture of the nonchip based
components of the 4000 mid
®
in preparation for
production scale up was a key strategic aim during 2014
we were delighted therefore to sign an agreement in
september 2014 with plexus a leading manufacturer to
technology companies the handover process is complete
and the first finished units were delivered to us in early
2015
furthermore since the yearend we have signed a
distributor agreement with kinesis a leading international
supplier of analytical consumables and equipment for the
distribution of the microsaicbranded 4000 mid
®
in the uk
europe and india demonstration units have already been
ordered and delivered
we will continue to develop relationships with new potential
commercial partners in the pharma biotech and other
targeted sectors
finally to support our commercial strategy we achieved
iso 9001 accreditation during 2014
rd
our marketing plan for 2014 continued to be directed
towards positioning microsaic as a solution provider for
chemical analysis rather than simply as a mass
spectrometer vendor 
in line with this plan we have been leveraging our technical
expertise to develop nextgeneration products that we
believe will significantly expand the range of applications
that our innovative ms instruments can address and that
endusers will increasingly demand
in january 2014 we launched the midas™ compact
interface module described earlier
our rd in 2015 will be directed towards achieving
technical milestones in our oem partnership opportunities
as well as developing nextgeneration products to expand
our range of applications
microsaic maintains a large portfolio of patents of which
52 are granted
people
we have made significant investment in our business
development customer services and engineering teams
over the last 18 months to position the company for future
commercial growth the emphasis over the next 12 months
will be to apply these teams in the execution of the business
we have already won we will continue to recruit new talent
where it will complement the existing team in order to
maintain a marketleading position
the company’s scientific advisory group formed in 2013
met a number of times during the year and has made
valuable contributions to the product marketing plan going
forward
performance measurement
the ongoing performance of the company is managed and
monitored using a number of key performance indicators 
the company’s revenues are monitored as follows
year to year to 
31 december 31 december 
2014 2013 incdec
revenue metrics £ £
products 1010062 835770 21
consumables 102333 59232 73
revenues comprise sales of products consumables thereon
and service income associated with delivering the products
the growth in consumables income reflects the growing
user base
the company’s profit and cash are monitored as follows
year to year to 
31 december 31 december 
2014 2013 incdec
profit  cash metrics £ ££
loss before share 
based payments 
interest  tax 3108280 2339514 –33
cash used in 
operating and 
investing activities 2878993 2552302 –13
cash and cash 
equivalents 4548545 3239283 40
the company’s profitability is monitored through monthly
forecasting which tracks where the business is and where it
is forecast to be at a certain date the cash position is
monitored on a daily basis and reforecast monthly
the progress of the company’s research and development
programmes is reviewed on a monthly basis by the senior
management team progress is summarised for the board
microsaicpp0107  26032015  1549  page 5 financial results
in line with the company’s transition from grantgenerated
revenues to product sales an accounting policy change
has been made to make the financial information more
relevant this will also make it easier for users to
understand the financial statements accordingly
nonproduct sales are now presented under ‘other
operating income’ and cost of sales and operating
expenses have been recategorised so that cost of sales
now includes only the raw materials cost of products sold
operating expenses represents the cost base of the
business as a result of this accounting policy change
comparative figures have been restated 
revenues increased 32 to £1203636 2013
£908442 product sales increased by 21 with a full in
year contribution from biotage and consumables increased
by 73 reflecting the growing user base in line with the
company’s transition from being reliant on income from
eu grants and prototype sales other operating income was
lower at £102145 2013 £256793 gross margins were
42 2013 36 and accordingly gross profit was
£503456 2013 £326919 
we have noted that one distribution channel has delivered
softer than expected product sales in early 2015 the
causes of this issue have been identified and management
is taking steps to address this the recently signed oem
agreements will begin contributing to sales growth as
further new products are launched anticipated in h2 2015
and 2016
operating expenses excluding sharebased payments were
£3713881 2013 £2923226 the increase in
operating expenses was mainly due to the company’s
investment in the building of oem partnerships all of which
are located overseas and the investment in the
manufacturing process to make it capable of being
outsourced and ready for mass production 
therefore the loss for the period before sharebased
payments tax and interest was £3108280 2013
£2339514 
in october the company placed 10500000 ordinary
shares with new and existing shareholders this represented
a 20 increase in the company’s issued share capital the
gross proceeds raised from the issue amounted to
£44 million the cash position at 31 december 2014 was
£455 million 2013 £324 million
as with previous years the going concern basis has
continued to be adopted in preparing the financial
statements following the progress made by the company
to date and the progress anticipated in the near term the
directors have a reasonable expectation that the company
will have access to adequate funds to continue operations
for at least 12 months further details are provided in the
notes to the financial statements
outlook 
the board is pleased with the progress that microsaic has
made across all areas of its business in 2014 we have
signed a further three oem agreements targeting specific
applications a manufacturing agreement that provides
capacity to meet expected commercial demand and a
distributor agreement for our own branded instruments in
key markets together this provides microsaic with a strong
base for the business to move forward and is a significant
step forward from our position 12 months ago 
we are continuing to gain increasing recognition for the
potential of our innovative ms technologies and new
products within the scientific analytical instrumentation
market where we believe we have an opportunity to make
ms accessible across a broader range of applications and
to a much larger number of lab scientists than ever before
we are focused on three business objectives that underpin
our ambitions for 2015 and beyond
• executing on our existing oem agreements and
distributor agreement
• developing further oem partnerships with synergistic
companies which can provide microsaic with access to
enhanced sales distribution channels alongside our
own direct sales channel and
• furthering innovation and maintaining a leadership
position in the field of miniaturised ms which
continues to be a core driver of our ongoing
commercial strategy
all our activities are aligned to these priorities our ‘plug 
play’ usability designs remain unique and the increasing
market acceptance of our chipbased technology will
provide the platform for further growth and differentiation
from competitors we remain intent on broadening the
application base and enhancing user experience of the
mid
®
in order to make it the benchtop analytical tool of
choice for chemists it is my belief that these strengths and
focused strategy continue to put microsaic systems in a
strong position to capitalise in an evolving market
6 microsaic systems plc annual report and financial statements 2014
strategic report – chief executive’s review continued
for the year ended 31 december 2014
microsaicpp0107  26032015  1549  page 6 risk management 
the company manages risk and opportunity from an
operational basis where it assesses and weighs up the
financial effect of risk and opportunity on the goals of the
company the company has set a risk tolerance level of
£50000 and reviews on a monthly basis those risks above
this level
the company’s top five risksopportunities at 31 december
2014 were
risks
risk rating risk rating 
description risk premitigation mitigating action postmitigation
high mediumlow
high mediumlow
medium low
mediumlow low
opportunity
opportunity rating opportunity rating
description opportunity premitigation mitigating action postmitigation
high mediumlow
the strategic report was approved by the board of
directors on 20 march 2015 and signed on its behalf by
colin jump
chief executive officer
failing to deliver on
customer expectations
the risk is that
microsaic would lose
an important customer
investment in rd and
service teams to ensure
customer expectations
are met
losing competitive
advantage
the risk that a new
entrant to the market
might capture market
share
investment in strong
commercial presence
and rd
the theft of intellectual
property
the loss of ip could
lead to a competitor
developing competing
products
the action would
require both physical
product and domain
knowledge the latter
being protected
contractually
the rate of cash burn in
the commercialisation
phase
that existing cash
resources and access to
cash resources would be
insufficient to cover the
commercialisation
phase and cash runs out
the company has
good controls in place
to monitor cash
management and
performs longterm
forecasting 
a new oem
opportunity is missed
the risk that the
company does not
identify a valuable new
oem opportunity
investment in
marketing promotion
of brand attendance at
trade shows
executives’ knowledge
of the market
microsaic systems plc annual report and financial statements 2014 7
microsaicpp0107  26032015  1549  page 7 8 microsaic systems plc annual report and financial statements 2014
colin nicholl – nonexecutive chairman
colin nicholl joined the board of the company in 2005
and has served as chairman since july 2013 having
previously been deputy chairman from 2006 until june
2013 he sits on the board’s audit committee colin brings
a wealth of business financial and city experience to the
company as a former partner of cazenove  co and
chief investment officer of cazenove asset management
he is a nonexecutive director of im asset management
and was until its takeover chairman of membrane
extraction technology limited colin has a degree in
mathematics from the university of york and has actuarial
and company secretarial professional qualifications
andrew holmes – nonexecutive director
andrew holmes is professor of microelectromechanical
systems at imperial college london and a cofounder of
the company professor holmes was educated at
cambridge university and imperial college london where
he has been a member of staff since 1995 and specialises
in research into microfabrication and micropower
technologies andrew has been company secretary of the
company since 2004 and sits on the board’s audit and
remuneration committees
james ramage – nonexecutive director
james ramage was appointed as a director of the
company in april 2010 dr ramage is also chairman of
tesla engineering a manufacturer of high value magnetic
components for mri scanners and other products he is a
veteran of the analytical instrumentation industry and served
as a director and divisional managing director of vg
instruments plc and fisons plc prior to becoming chairman
of tesla dr ramage sits on the board’s audit committee
and chairs the board’s remuneration committee
eric yeatman – nonexecutive director
eric yeatman is professor of microengineering at imperial
college london professor yeatman is a cofounder of the
company and was chairman of the board from 2004 to
june 2013 he chairs the board’s audit committee and sits
on the board’s remuneration committee eric was
educated at dalhousie university halifax canada and
imperial college london where he has been a member of
staff since 1989 he specialises in microsystems research
and has acted as an advisor to two venture capital funds
colin jump – chief executive officer
colin jump has 30 years’ commercial and operational
experience in the analytical instrumentation market he
joined microsaic systems in november 2012 from
shimadzu a global manufacturer of scientific research
instruments where he spent 11 years as its uk managing
director he was previously european commercial director
at sge europe 19992001 and prior to that spent seven
years in senior management and marketing positions at
mallinckrodt baker in the uk and the netherlands between
1983 and 1991 colin served in sales and marketing
positions at bayer diagnostics boehringer mannheim and
wellcome diagnostics he was appointed to the board on
1 november 2012
andrew darby – finance director
andrew darby was appointed as finance director to the
company in april 2014 mr darby is a graduate of
cambridge university and a chartered accountant with
over 18 years of experience in senior finance strategic
and operational roles within quoted companies he
joined microsaic from active risk group plc formerly
an aimlisted company specialising in enterprise risk
management software solutions where he spent seven
years as chief operations officer and chief financial
officer until its successful sale to sword group se prior
to joining active risk andrew held senior positions with
misys plc and generali spa and qualified as a chartered
accountant with coopers  lybrand now
pricewaterhousecoopers
board of directors
for the year ended 31 december 2014
microsaicpp0819  26032015  1551  page 8 microsaic systems plc annual report and financial statements 2014 9
directors’ report
for the year ended 31 december 2014
the directors present their report for the year ended 31 december 2014
principal activity business review and business risks
the principal activity of the company continued to be the research development and commercialisation of scientific
instruments a review of the business and its prospects is contained within the strategic report 
results and dividends
the results for the company are given in the statement of comprehensive income set out on page 20 the directors do not
recommend the payment of a dividend 2013 nil
directors
since 1 january 2014 the following directors have held office
c j nicholl
c r jump
m r bateman resigned 15 april 2014
a h darby appointed 16 april 2014
p i t edwards resigned 14 july 2014
a s holmes
j c ramage
e m yeatman
eric yeatman and andrew darby were reappointed at the annual general meeting on 2 june 2014
at the forthcoming annual general meeting andrew holmes and colin jump will retire by rotation and be proposed for
reappointment 
directors’ interests
the directors’ interests in the shares of the company at 31 december 2014 were
ordinary shares of 025p each ordinary shares of 025p each 
at 31 december 2014 at 31 december 2013
number  number 
c j nicholl 3268711 517 3030616 577
c r jump 23256 004 23256 004
a h darby –– ––
a s holmes 2836656 448 2936656 559
j c ramage 284990 045 261190 050
e m yeatman 3287723 520 3252723 619
9701336 1534 9504441 1810
microsaicpp0819  26032015  1551  page 9 10 microsaic systems plc annual report and financial statements 2014
directors’ report continued
for the year ended 31 december 2014
significant shareholdings
shareholders excluding directors having a beneficial interest of 3 or more of the company’s shares as at 20 march
2015
ordinary shares of 025p each 
at 20 march 2015
number 
n w wray 7298032 1151
octopus investments 5319276 839
herald investment trust 5125348 809
fidelity worldwide investment 4867265 768
blackrock investment management 3869223 610
aviva investors 3653669 576
r r a syms 3635200 574
hargreave hale 2537000 400
amati global investors 2293000 362
employees
the company regards the expertise and contributions of its employees as crucial to the future success of the business the
company engages its employees to understand all aspects of the business and seeks to remunerate its employees fairly the
company gives full and fair consideration to applications for employment received regardless of age gender colour
ethnicity disability nationality religious beliefs or sexual orientation the board takes account of employees’ interests when
making decisions and suggestions from employees aimed at improving the company’s performance are encouraged
company share ownership plans
the company operates two share ownership plans for the benefit of its employees and directors an employee share
option scheme esos and a share incentive plan sip which has now been withdrawn for new entrants
the esos was formed in 2006 to enable the incentivisation of key employees to be aligned to the performance of the
company under the esos the company grants to employees options to acquire the company’s ordinary shares subject
to
— vesting periods normally 3 years for new grants
— a total exercise period of 10 years from date of grant
— the exercise price normally being the market price of the ordinary shares at the date of grant
— performance conditions as appropriate 
options are granted up to the maximum amount allowed under the limits of the enterprise management incentive ‘emi’
scheme – these options are called ‘approved options’ the emi scheme is subject to the provisions of schedule 5 of the
income tax earnings and pensions act 2003 any options granted above emi limits are ‘unapproved options’
the sip has been withdrawn for new entrants during 2014 and an alternative plan is under consideration there is
currently one remaining employee within the plan it enabled all employees subject to minimum service criteria the
opportunity to take a continuing stake in the company it was approved by hmrc in november 2012 and operated for
the first time in 2013 a plan trust was established for the purposes of acquiring the company’s shares in accordance
with sip regulation employees could invest up to £1500 from gross pay in any one year which was used to acquire shares
known as ‘partnership shares’ and held within the plan trust the company was able to issue ‘matching shares’ in
proportion to the partnership shares and also award employees with ‘free shares’ matching shares and free shares
vested on the completion by the participating employee of a further three years’ service and certain other events and
could be withdrawn from the plan taxfree after five years’ service
the option pool is defined as the amount of options available to be granted under the company’s existing shareholder
mandate
microsaicpp0819  26032015  1551  page 10 microsaic systems plc annual report and financial statements 2014 11
the company received approval at its 2011 agm to issue equity securities to employees and directors on conversion
of their options up to a maximum of 10 of the company’s issued share capital over a rolling ten year period at
31 december 2014 63253376 shares were in issue and so the maximum option pool was therefore 6325338
3155391 unexercised options had been granted to employees and 11977 shares had been issued to the sip  during the
last 10 years 1958900 equity securities had been issued in respect of converted options thus the remaining option pool
was 1199070
management of risk
the management of operational risk is covered in the risk management report financial risk is managed as follows
liquidity risk
the company finances its operations from equity funding provided by shareholders and revenues generated by the
business the company seeks to manage liquidity risk to ensure sufficient funds are available to meet requirements 
the company invests its cash reserves in bank and money market deposits as a liquid resource to fund its operations the
company’s strategy for managing cash is to maximise interest income at low risk whilst ensuring availability to match the
profile of the company’s cash flows
interest rate risk
the company does not face any significant interest rate risk as it has no borrowings
surplus funds are invested to maintain a balance between accessibility of funds and competitive rates of return whilst
investing funds safely
credit risk
the company manages its credit risk in cash and cash equivalents by spreading surplus funds between creditworthy
financial institutions 
the company is also exposed to credit risk attributable to trade and other receivables the maximum credit risk in respect
of the financial assets at each period end is represented by the balance outstanding on trade and other receivables the
company has limited exposure to credit risk as the majority of its trade and other receivables are due from major
international corporations and institutions 
foreign currency risk
the company is based in the united kingdom and the majority of its transactions are denominated in pounds sterling
the company has no long term commitments to purchase goods or services in foreign currencies purchases denominated
in foreign currency are expensed at the exchange rate prevailing at the date of the transaction and comprise an
immaterial proportion of the company’s total expenditure 
the only assets and liabilities denominated in foreign currencies relate to trade receivables and trade payables with
overseas counterparties together with small balances of us dollar and euro currencies to settle these liabilities the risks
and sums involved are considered to be immaterial
where a significant transaction in a foreign currency is anticipated with a high degree of certainty the company takes out
a forward exchange contract to mitigate the risk of currency fluctuation no such instruments were held at 31 december
2014
health and safety and the environment
the company is committed to providing a safe environment for its staff and other parties for whom it has a responsibility
it has set up systems and processes to ensure compliance with health and safety legislation and the board considers health
and safety matters at its regular monthly meetings
the company is also mindful of its corporate responsibilities concerning the impact of its activities on the environment and
seeks to minimise this impact wherever possible
microsaicpp0819  26032015  1551  page 11 directors’ indemnity and insurance
the company has granted an indemnity to its directors under which the company will indemnify them subject to the terms
of the deed of indemnity against all costs charges losses damages and liabilities incurred by them in the performance of
their duties
the company also maintains insurance for its directors and officers against the consequences of actions brought against
them in relation to their duties for the company
related party transactions
the interests of the directors are shown above and their remuneration is detailed in the directors’ remuneration report
there were no other related party transactions
directors’ responsibilities
the directors are responsible for preparing the annual report and the financial statements in accordance with applicable
law and regulations 
company law requires the directors to prepare financial statements for each financial year under that law the directors
have prepared the company financial statements in accordance with international financial reporting standards ifrss as
adopted by the european union and applicable law under company law the directors must not approve the financial
statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or
loss of the company for that period 
in preparing the financial statements the directors are required to
— select suitable accounting policies and then apply them consistently
— make judgements and accounting estimates that are reasonable and prudent and
— state whether ifrss as adopted by the european union have been followed subject to any material departures
disclosed and explained in the financial statements
the directors are responsible for keeping adequate accounting records that are sufficient to show and explain the
company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and
enable them to ensure that the financial statements comply with the companies act 2006 they are responsible for
safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud
and other irregularities 
the directors are responsible for the maintenance and integrity of the corporate and financial information included on the
company’s website legislation in the united kingdom governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions 
statement of disclosure to auditors
so far as each director is aware there is no relevant audit information of which the company’s auditors are unaware
additionally 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 company’s auditors are aware of that information
auditors
saffery champness have expressed their willingness to remain in office as auditors of the company and a resolution for
their reappointment will be proposed at the forthcoming annual general meeting
this directors’ report was approved by the board of directors on 20 march 2015 and signed on its behalf
andrew darby
director
company number 3568010
12 microsaic systems plc annual report and financial statements 2014
directors’ report continued
for the year ended 31 december 2014
microsaicpp0819  26032015  1551  page 12 this report on the directors’ remuneration sets out the company’s policy on the remuneration of executive and
nonexecutive directors together with details of directors’ remuneration packages and service contracts 
remuneration policy
the remuneration policy for executive directors determination of their individual remuneration packages and their
performance appraisals have been delegated to the board’s remuneration committee comprising three nonexecutive
directors
remuneration of the executive directors
in setting remuneration for executive directors the remuneration committee considers a number of factors including
— the basic salaries and benefits available to executive directors of comparable companies
— the need to pay executive directors a competitive salary in line with the nature and complexity of their work
— the need to attract and retain executive directors of an appropriate calibre
— the need to ensure executive directors’ commitment to the continued success of the company by means of incentive
schemes and
— the need for the remuneration awarded to reflect performance
remuneration of the nonexecutive directors
the remuneration of the nonexecutive directors is agreed by the board following recommendation by the remuneration
committee having a view to rates paid in comparable organisations and appointments the nonexecutive directors do
not receive any pension bonus or other benefits from the company since becoming a public limited company no share
options have been issued to nonexecutive directors and nonexecutive directors are not entitled to participate in any
company share option schemes 
remuneration of the directors
the remuneration of the executive directors consists of a basic salary a contributory personal pension and life assurance 
the remuneration of the nonexecutive directors is an annual fee paid monthly nonexecutive directors are engaged on
service contracts and are not employees
share options
it is the normal practice of the company to award share options to executive directors on joining the company the award
of additional options to executive directors as well as to other employees is reviewed annually
directors’ emoluments
year to year to
31 december 31 december
salaries other pension 2014 2013
and fees payments contributions total total
£££ £ £
c j nicholl 35750 –– 35750 23209
c r jump 174186 37000 – 211186 174372
m r bateman 1 30312 – 5127 35439 89759
p i t edwards 2 72598 32500 19206 124304 116229
a s holmes 25150 –– 25150 21750
j c ramage 25150 –– 25150 19577
e m yeatman 25150 –– 25150 22772
a h darby 3 100500 11728 6500 118728 –
488796 81228 30833 600857 467668
1 until 15 april 2014
2 until 7 july 2014
3 from 24 march 2014
other payments comprise amounts paid and payable to directors in relation to their service in addition to salaries and
fees
microsaic systems plc annual report and financial statements 2014 13
directors’ remuneration report
for the year ended 31 december 2014
microsaicpp0819  26032015  1551  page 13 14 microsaic systems plc annual report and financial statements 2014
share incentive plan sip
m r bateman and j c ramage participated in the company sip in 2013 and were each awarded 1562 matching shares
under the terms of the scheme mr bateman’s matching shares lapsed when he left the company during the year the
company incorrectly included dr ramage in the sip in 2013 and discussions are underway with the relevant external
parties to unwind his holding
directors’ share options
share options over the company’s ordinary shares held by the directors during the year were
at at
1 january granted lapsed exercised 31 december
2014 in the year in the year in the year 2014 exercise price
number number number number number p exercise period
c j nicholl 116000 –– – 116000 4310p 24 may 2008 – 24 may 2015
116000 –– – 116000 4310p 24 may 2009 – 24 may 2016
c r jump 1276191 –– – 1276191 3900p 10 dec 2017 – 9 dec 2022
– 300000 –– 300000 4680p 10 dec 2017 – 1 may 2024
a h darby – 350000 –– 350000 4680p 2 may 2017 – 1 may 2024
m r bateman 40600 – 40600 – – 12931p 1 dec 2010 – 19 feb 2018
19333 –– 19333 – 2586p 3 dec 2012 – 2 dec 2020
38667 –– 38667 – 2586p 3 dec 2013 – 2 dec 2020
80000 – 80000 – – 4200p 2 jul 2015 – 1 jul 2022
p i t edwards 191400 –– – 191400 12931p 11 apr 2011 – 19 feb 2018
77333 –– 77333 – 2586p 3 dec 2012 – 2 dec 2020
154667 –– 22667 132000 2586p 3 dec 2013 – 2 dec 2020
40000 – 40000 – – 4200p 2 jul 2015 – 1 jul 2022
2150191 650000 160600 158000 2481591
the above share options are subject to service andor performance conditions 
the share price on 1 january 2014 was 4350p and on 31 december 2014 was 4600p with a high and low over the
year of 5025p and 4250p respectively
the share based payment charge for the directors was £45414 2013 £49792
regarding the share options of mr edwards as at 31 december 2014 191400 have lapsed and 132000 have been
exercised since the year end
directors’ service contracts
details of each director’s service contract are as follows
contract date term notice period
c j nicholl 24apr06 indefinite 3 months
c r jump 23sep12 indefinite 6 months
a h darby 24mar14 indefinite 6 months
a s holmes 01apr06 indefinite 3 months
j c ramage 21jun10 indefinite 3 months
e m yeatman 01apr06 indefinite 3 months
directors’ remuneration report continued
for the year ended 31 december 2014
microsaicpp0819  26032015  1551  page 14 as an aimlisted company microsaic systems plc is not required to comply with the uk corporate governance code
2010 a set of recommended corporate governance principles for uk public companies issued by the financial reporting
council however the directors support high standards of corporate governance and have established a set of corporate
governance principles which they regard as appropriate for the size nature and stage of development of the company
based on the qca guidelines 
the board
the board currently comprises six directors consisting of the chairman two executive directors the ceo and finance
director and three nonexecutive directors
the chairman is a nonexecutive director
directors appointed by the board are subject to reelection by shareholders at the following annual general meeting and
thereafter directors are subject to reelection at least every three years
independence of the nonexecutive directors
the board believes that its nonexecutive directors are independent while some of these directors have significant
shareholdings in the company the board believe that the advice and behaviour of its nonexecutive directors is
independent and at all times in the best interest of all shareholders equally in addition the skills and business judgement
which they possess and exercise contribute to ensuring that the company is managed in an efficient effective and
entrepreneurial manner 
the board keeps under review the relevance and appropriateness of the nonexecutives’ skills in light of the continuing
evolution of the marketplace technology and business strategy
role of the board
the board is responsible for ensuring that the company is managed in an efficient effective and entrepreneurial manner
these responsibilities include oversight of and approval of in line with agreed authority limits corporate strategy financial
budgets corporate performance approval of major capital expenditure executive performance and the framework of
internal controls
role of the management team
the management team is composed of the executive directors and a number of senior managers this team is responsible
for the day to day execution of the strategy of the business within agreed authority limits they run the operations of the
business and work towards defined goals and kpis that are embedded within the company’s strategy budget and
performance goals
the team meets once per month 
engagement with staff
the senior management team holds a quarterly meeting with all the staff within the company to communicate progress
and to receive feedback on improvements to operations in line with the achievement of company goals
board processes
the board has an established audit committee and a remuneration committee with formally delegated responsibilities to
assist with the execution of its responsibilities
the full board holds regular meetings on a monthly basis and additional meetings at any other times as may be necessary
to deal with any urgent matters that arise the agenda for board meetings is prepared by the executive directors following
an established framework and agreed with the chairman all submissions are circulated in advance to allow due
consideration of matters therein 
the executive directors prepare regular reports which allow the board to assess the company’s activities and review its
performance and the board has clearly specified the levels of authority delegated to management members of the
company’s management team are involved in board discussions as required and nonexecutive directors are able to
have discussions with other employees where they feel it is appropriate nonexecutive directors also have the authority to
seek external independent advice as they think fit at the expense of the company
microsaic systems plc annual report and financial statements 2014 15
corporate governance report
for the year ended 31 december 2014 
microsaicpp0819  26032015  1551  page 15 the board is ultimately responsible for the company’s system of internal control and for reviewing its effectiveness this
includes financial operational and compliance controls and riskmanagement systems internal control systems are
designed to meet the company’s particular needs and the risks to which it is exposed the internal control systems are
designed to minimise rather than eliminate the risk of failure to achieve business objectives and by their nature can only
provide reasonable and not absolute assurance against misstatement and loss
conflicts of interest
directors must keep the board advised of any interest that could potentially conflict with those of the company where a
material conflict exists the director concerned is not present at the meeting whilst the relevant matter is considered 
directors’ attendance record
the following table shows the attendance at the meetings of the board of directors during 2014
meetings
meetings held attended
number number
c j nicholl 19 15
c r jump 19 16
a h darby 19 14
a s holmes 19 15
j c ramage 19 16
e m yeatman 19 16
m r bateman 19 4
p i t edwards 19 8
audit committee
the remit of the audit committee is documented in its terms of reference which were adopted by the board of directors on
31 march 2011
the purpose of the committee is to assist the board in the effective discharge of its responsibilities for corporate
governance financial reporting corporate control and risk management the audit committee normally meets at least
twice a year and amongst other things reviews the annual report and accounts and interim statements with the external
auditors the committee also approves external auditors’ fees and ensures auditors’ independence as well as focusing on
compliance with legal requirements and accounting standards the ultimate responsibility for reviewing and approving the
annual financial statements and interim statements remains with the board
the members of the audit committee for 2014 were e m yeatman committee chairman c j nicholl j c ramage and
a s holmes the external auditors the chief executive officer finance director and other executives may be invited to the
audit committee meetings at the discretion of the committee 
the audit committee met twice in 2014
remuneration committee
the remit of the remuneration committee is documented in its terms of reference which were adopted by the board of
directors on 31 march 2011
the remuneration committee meets as required and at least once a year its responsibilities include reviewing the
performance of the executive directors setting their remuneration levels determining the payment of bonuses and other
benefits and considering the grant of options under the company share option schemes
the members of the remuneration committee for 2014 were j c ramage committee chairman a s holmes and
em yeatman 
the remuneration committee met six times in 2014
16 microsaic systems plc annual report and financial statements 2014
corporate governance report continued
for the year ended 31 december 2014 
microsaicpp0819  26032015  1551  page 16 board nominations
the appointment of replacement or additional directors is the responsibility of the board as a whole 
at this stage it is not considered appropriate for the company to have a formally constituted nominations committee
however this will be kept under review
communications with shareholders
the board aims to keep shareholders informed of all major developments concerning the company information is
communicated through the following channels
— the release of announcements trading updates and interim financial statements through the regulatory news service
of the london stock exchange and on the company’s website
— the annual report and financial statements are sent to all registered shareholders
— face to face meetings with major shareholders following the release of interim and preliminary results
notices of all meetings of shareholders are also sent to all registered shareholders
microsaic systems plc annual report and financial statements 2014 17
microsaicpp0819  26032015  1551  page 17 18 microsaic systems plc annual report and financial statements 2014
we have audited the financial statements of microsaic systems plc for the year ended 31 december 2014 on pages 20 to
41 the financial reporting framework that has been applied in their preparation is applicable law and international
financial reporting standards ifrss as adopted by the european union as applied in accordance with the provisions of
the companies act 2006
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 auditors’ 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
respective responsibilities of directors and auditors
as explained more fully in the directors’ responsibilities statement set out on page 12 the directors are responsible for the
preparation of the financial statements and for being satisfied that they give a true and fair view our responsibility is to
audit and express an opinion on the financial statements in accordance with applicable law and international standards
on auditing uk and ireland those standards require us to comply with the auditing practices board’s ethical standards
for auditors
scope of the audit of the financial statements
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give
reasonable assurance that the financial statements are free from material misstatement whether caused by fraud or error
this includes an assessment of whether the accounting policies are appropriate to the company’s circumstances and
have been consistently applied and adequately disclosed the reasonableness of significant accounting estimates made by
the directors and the overall presentation of the financial statements in addition we read all the financial and non
financial information in the annual report to identify material inconsistencies with the audited financial statements and to
identify any information that is apparently materially incorrect based on or materially inconsistent with the knowledge
acquired by us in the course of performing the audit if we become aware of any apparent material misstatements or
inconsistencies we consider the implications for our report
opinion on financial statements
in our opinion the financial statements
— give a true and fair view of the state of affairs of the company as at 31 december 2014 and of its loss for the year
then ended and 
— have been properly prepared in accordance with ifrss as adopted by the european union and as applied in
accordance with the provisions of the companies act 2006 and
— have been prepared in accordance with the requirements of the companies act 2006
opinion on other matter prescribed by the companies act 2006
in our opinion the information given in the strategic report and directors’ report for the financial period for which the
financial statements are prepared is consistent with the financial statements
independent auditors’ report to the members of
microsaic systems plc
for the year ended 31 december 2014
microsaicpp0819  26032015  1551  page 18 matters on which we are required to report by exception
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 or returns adequate for our audit have not been received from
branches not visited by us or
— the 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
lucy brennan
senior statutory auditor
for and on behalf of saffery champness
chartered accountants and statutory auditors
lion house 
red lion street
london wc1r 4gb
23 march 2015
microsaic systems plc annual report and financial statements 2014 19
microsaicpp0819  26032015  1551  page 19 20 microsaic systems plc annual report and financial statements 2014
year to year to
31 december 31 december
2014 2013
notes £ £
revenue 5 1203636 908442
cost of sales 700180 581523
gross profit 503456 326919
other operating income 6 102145 256793
operating expenses 3713881 2923226
loss from operations before share based payments 7 3108280 2339514
share based payments 55850 74003
loss from operations after share based payments 3164130 2413517
finance income 8 5596 7843
loss before tax 3158534 2405674
tax on loss on ordinary activities 9 154414 120516
total comprehensive loss for the year 3004120 2285158
loss per share attributable to the equity holders of the company
basic and diluted loss per ordinary share 10 547p 471p
statement of comprehensive income
for the year ended 31 december 2014
the notes on pages 24 to 41 form part of these financial statements
microsaicpp2046  26032015  1549  page 20 year to year to
31 december 31 december
2014 2013
notes £ £
assets
noncurrent assets
intangible assets 11 116565 131831
property plant and equipment 12 128272 210546
total noncurrent assets 244837 342377
current assets
inventories 13 241175 204841
trade and other receivables 14 515396 415220
corporation tax receivable 100000 80000
cash and cash equivalents 4548545 3239283
total current assets 5405116 3939344
total assets 5649953 4281721
equity and liabilities
equity
share capital 17 158133 131271
share premium 18 12790887 8629494
share option reserve 18 438662 382812
retained earnings 8578539 5574419
total equity 4809143 3569158
current liabilities
trade and other payables 15 774143 712563
noncurrent liabilities
provisions 16 66667 –
total liabilities 840810 712563
total equity and liabilities 5649953 4281721
the financial statements were approved for issue by the board of directors on 20 march 2015 and signed on its behalf by
colin jump
chief executive officer
company number 3568010
microsaic systems plc annual report and financial statements 2014 21
statement of financial position
as at 31 december 2014
the notes on pages 24 to 41 form part of these financial statements
microsaicpp2046  26032015  1549  page 21 22 microsaic systems plc annual report and financial statements 2014
share
share share option retained total
notes capital premium reserve earnings equity
£££ ££
at 1 january 2013 106349 4651410 499570 3480022 1777307
shares issued 24922 4259698 –– 4284620
share issue costs – 281614 –– 281614
transfer in respect of lapsed share options –– 190761 190761 –
total comprehensive loss for the year ––– 2285158 2285158
share based paymentsshare options –– 74003 – 74003
at 31 december 2013 131271 8629494 382812 5574419 3569158
shares issued 17 26862 4446495 –– 4473357
share issue costs – 285102 –– 285102
transfer in respect of lapsed share options ––– ––
total comprehensive loss for the year ––– 3004120 3004120
share based paymentsshare options –– 55850 – 55850
at 31 december 2014 158133 12790887 438662 8578539 4809143
statement of changes in equity
for the year ended 31 december 2014
the notes on pages 24 to 41 form part of these financial statements
microsaicpp2046  26032015  1549  page 22 microsaic systems plc annual report and financial statements 2014 23
year to year to
31 december 31 december
2014 2013
notes £ £
total comprehensive loss for the year 3004120 2285158
amortisation of intangible assets 11 49256 56843
depreciation of property plant and equipment 12 121820 93261
loss on disposal of property plant and equipment 7977 –
share based payments 55850 74003
tax on loss on ordinary activities 154414 120516
interest received 5596 7843
increase in inventories 36334 14489
increase in trade and other receivables 100176 233691
increasedecrease in trade and other payables 128247 33740
cash used in operations 2937490 2471330
taxation received 134414 190516
net cash used in operating activities 2803076 2280814
cash flows from investing activities
purchases of intangible assets 11 33990 59789
purchases of property plant and equipment 12 47523 219542
interest received 5596 7843
net cash used in investing activities 75917 271488
cash flows from financing activities
proceeds from share issues 17 4473357 4284620 
share issue costs 285102 281614
net cash from financing activities 4188255 4003006 
net increase in cash and cash equivalents 1309262 1450704
cash and cash equivalents at beginning of the year 3239283 1788579
cash and cash equivalents at the end of the year 4548545 3239283
statement of cash flows
for the year ended 31 december 2014
the notes on pages 24 to 41 form part of these financial statements
microsaicpp2046  26032015  1549  page 23 24 microsaic systems plc annual report and financial statements 2014
the principal activity of the company continued to be the research development and commercialisation of scientific
instruments it is incorporated in england and its registered address is gms house boundary road woking surrey
gu21 5bx
1 accounting policies
the following principal accounting policies have been used consistently in the preparation of these financial
statements 
basis of preparation
these financial statements have been prepared in accordance with international financial reporting standards ifrs
and the interpretations of the international financial reporting interpretations committee ifric as adopted by the
european union and with those parts of the companies act 2006 applicable to companies reporting under ifrs
these financial statements have been prepared on the historic cost basis except where financial instruments are
required to be carried at fair value under ifrs 
revenue recognition
revenue represents amounts receivable from the sale of goods and services and from development contracts net of
value added tax and trade discounts revenue from the sale of goods is recognised when the risks and rewards of
ownership of the goods passes to the customer which is normally upon delivery revenue from rendering services is
recognised in the period in which the service is provided revenue from development contracts is recognised under
the percentageofcompletion method
change in accounting policy for nonproduct income
in line with the company’s transition from grantgenerated revenues to product sales an accounting policy change
has been made to make the financial information more relevant this will also make it easier for users to understand
the financial statements accordingly nonproduct sales are now presented under ‘other operating income’ and cost
of sales and operating expenses have been recategorised so that cost of sales now includes only the raw materials
cost of products sold operating expenses represents the cost base of the business as a result of this accounting
policy change comparative figures have been restated as follows £256793 of ‘revenue’ has been reclassified as
‘other operating income’ £1460831 of ‘cost of sales’ has been reclassified in ‘operating expenses’ 
segmental reporting
the company currently has one business segment being the research development and commercialisation of
scientific instruments this is undertaken wholly within the united kingdom revenue by geography is analysed
between the uk and nonuk 
intangible assets
trademarks and patents are stated at historic cost of registration less accumulated amortisation and any accumulated
impairment losses amortisation is charged to operating expenses and calculated to write off the cost in equal annual
instalments over five years which is considered to be a prudent estimate of their useful economic lives
property plant and equipment
items of property plant and equipment are stated at cost of acquisition or production costs less accumulated
depreciation and impairment losses 
depreciation is charged to the statement of comprehensive income on a straightline basis to writeoff the carrying
value of each asset to residual value over its estimated useful economic life as follows
plant and equipment – 20 to 333 on a straight line basis
fixtures and fittings – 333 on a straight line basis
notes to the financial statements
for the year ended 31 december 2014
microsaicpp2046  26032015  1549  page 24 microsaic systems plc annual report and financial statements 2014 25
pensions
the company operates a defined contribution retirement benefit scheme for its employees contributions are charged
to the statement of comprehensive income in the period they are payable
inventories
inventories are stated at the lower of cost and net realisable value cost is based on the firstin firstout principle and
includes expenditure incurred in acquiring the inventories and bringing them into their present locations and
condition the cost of finished goods and work in progress comprises raw materials direct labour and other direct
costs net realisable value is the estimated selling price in the ordinary course of business less applicable selling
expenses
provisions
provisions are established where the directors have identified an obligation which is probable and where the amount
can be estimated reliably
taxation
current taxes are based on the results of the company and are calculated according to local tax rules using the tax
rates that have been enacted by the balance sheet date 
the company recognises research and development tax credits receivable in cash as a current asset under the
heading corporation tax receivable any difference with amounts actually received are dealt with as adjustments to
prior period tax
deferred tax is provided in full using the balance sheet liability method for all taxable temporary differences arising
between the tax bases of assets and liabilities and their carrying values for financial reporting purposes deferred tax
is measured using currently enacted or substantially enacted tax rates 
deferred tax assets are recognised to the extent the temporary difference will reverse in the foreseeable future and that
it is probable that future taxable profit will be available against which the asset can be utilised
foreign currency translation
monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange
ruling at the balance sheet date transactions in foreign currencies are recorded at the rate ruling at the date of
transaction or forward contract rate if applicable all differences are taken to the statement of comprehensive
income
government grants
grants towards revenue expenditure are released to the statement of comprehensive income as the related
expenditure is incurred
financial instruments
the company has adopted both ias 32 and ias 39
financial assets and financial liabilities are recognised on the company’s statement of financial position when the
company becomes a party to the contractual provisions of the instrument
cash and cash equivalents
the fair value of cash and cash equivalents is considered to be their carrying amount due to their short term maturity
trade receivables
trade receivables do not carry interest and are stated at their nominal value as reduced by appropriate allowances for
estimated irrecoverable amounts
microsaicpp2046  26032015  1549  page 25 26 microsaic systems plc annual report and financial statements 2014
notes to the financial statements continued
for the year ended 31 december 2014
1 accounting policies continued
financial instruments continued
financial liability and equity
financial liabilities and equity instruments are classified according to the substance of the contractual arrangements
entered into an equity instrument is any contract that evidences a residual interest in the assets of the company after
deducting all of its liabilities
bank borrowings
interestbearing bank loans and overdrafts are recorded as the proceeds received net of direct issue costs finance
charges including premiums payable on settlement or redemption and direct issue costs are accounted for on an
accrual basis to the statement of comprehensive income using the effective interest method and are added to the
carrying amount of the instrument to the extent that they are not settled in the period in which they arise
trade payables
trade payables are not interest bearing and are stated at their nominal value
equity instruments
equity instruments issued by the company are recorded at the value of the proceeds received net of direct issue costs
leases
assets obtained under hire purchase contracts and finance leases are capitalised and depreciated over their useful
lives obligations under such agreements are included in liabilities net of the finance charges allocated to future
periods
all other leases are considered operating leases the costs of which are expensed on a straight line basis over the
lease term rent free periods and other incentives are spread on a straight line basis over the lease term
research and development
expenditure on research is recognised as an expense in the period in which it is incurred
development costs incurred on specific projects are capitalised when all the following conditions are satisfied
• completion of the intangible asset is technically feasible so that it will be available for use or sale
• the company intends to complete the intangible asset and use or sell it
• the company has the ability to use or sell the intangible asset
• the intangible asset will generate probable future economic benefits among other things this requires that there
is a market for the output from the intangible asset or for the intangible asset itself or if it is to be used internally
the asset will be used in generating such benefits
• there are adequate technical financial and other resources to complete the development and to use or sell the
intangible asset and
• the expenditure attributable to the intangible asset during its development can be measured reliably
costs incurred which do not meet the above criteria are expensed as incurred no development costs have been
capitalised to date
share based payments
in accordance with ifrs 2 “sharebased payments” the company reflects the economic cost of awarding shares and
share options to directors employees and advisors by recording an expense in the statement of comprehensive
income equal to the fair value of the benefit awarded fair value being determined by reference to option pricing
models the expense is recognised in the statement of comprehensive income over the vesting period of the award
microsaicpp2046  26032015  1549  page 26 microsaic systems plc annual report and financial statements 2014 27
2 application of new eu endorsed accounting standards amendments to existing eu endorsed
standards and interpretations
new standards amendments and interpretations effective in 2014 and relevant to the company’s results
none
new standards amendments and interpretations effective in 2014 not relevant to the company’s results or
that do not have a significant impact on the company’s financial statements other than additional
disclosures
ias 27 consolidated and separate financial statements 
consequential amendments resulting from the issue of ifrs 10 11 and 12
requirement to account for interests in ‘investment entities’ at fair value under ifrs 9 financial instruments or
ias 39 financial instruments recognition and measurement in the separate financial statements of a parent
ias 28 investments in associates
consequential amendments resulting from the issue of ifrs 10 11 and 12
ias 32 financial instruments presentation revised
amendments require entities to disclose gross amounts subject to rights of setoff amounts set off in accordance with
the accounting standards followed and the related net credit exposure this information will help investors understand
the extent to which an entity has set off in its balance sheet and the effects of rights of setoff on the entity’s rights and
obligations 
ifrs 10 consolidated financial statements
new standard that replaces the consolidation requirements in sic12 consolidation – special purpose entities and
ias 27 consolidated and separate financial statements standard builds on existing principles by identifying the
concept of control as the determining factor in whether an entity should be included within the consolidated financial
statements of the parent company and provides additional guidance to assist in the determination of control where
this is difficult to assess 
amendments to the transition guidance of ifrs 10 consolidated financial statements ifrs 11 joint arrangements
and ifrs 12 disclosure of interests in other entities thus limiting the requirements to provide adjusted comparative
information
ifrs 10 exception to the principle that all subsidiaries must be consolidated entities meeting the definition of
‘investment entities’ must be accounted for at fair value under ifrs 9 financial instruments or ias 39 financial
instruments recognition and measurement
ifrs 11 joint arrangements
new standard that deals with the accounting for joint arrangements and focuses on the rights and obligations of the
arrangement rather than its legal form standard requires a single method for accounting for interests in jointly
controlled entities 
amendments to the transition guidance of ifrs 10 consolidated financial statements ifrs 11 joint arrangements
and ifrs 12 disclosure of interests in other entities thus limiting the requirements to provide adjusted comparative
information
ifrs 12 disclosure of interest in other entities
new and comprehensive standard on disclosure requirements for all forms of interests in other entities including joint
arrangements associates special purpose vehicles and other off balance sheet vehicles 
amendments to the transition guidance of ifrs 10 consolidated financial statements ifrs 11 joint arrangements
and ifrs 12 disclosure of interests in other entities thus limiting the requirements to provide adjusted comparative
information
new disclosures required for investment entities as defined in ifrs 10 
microsaicpp2046  26032015  1549  page 27 28 microsaic systems plc annual report and financial statements 2014
notes to the financial statements continued
for the year ended 31 december 2014
2 application of new eu endorsed accounting standards amendments to existing eu endorsed
standards and interpretations continued
ias 36 impairment of assets
amendments to the disclosure requirements regarding the measurement of the recoverable amount for impaired
assets
ias 39 financial instruments
amendments to provide an exception to the requirement for discontinuation of hedge accounting in circumstances
where a hedging instrument is required to be novated to a central counterparty as a result of laws or regulations
new standards amendments and interpretations not yet effective and relevant to the company’s results
none
new standards amendments and interpretations not yet effective and not relevant to the company’s
results or do not have a significant impact on the company’s financial statements other than additional
disclosures
ifrs 2 sharebased payment
effective for periods beginning on or after 1 july 2014 – annual improvements 20102012 cycle amendments to
enhance the definition of vesting conditions and address implementation difficulties 
ifrs 3 business combinations 
effective for periods beginning on or after 1 july 2014 – annual improvements 20102012 cycle amendments to
clarify the recognition measurement and presentation of contingent consideration
ias 19 defined benefit plans 
effective for periods beginning on or after 1 july 2014 amendments to provide additional guidance concerning the
recognition of employee contributions
ias 40 investment property 
effective for periods beginning on or after 1 july 2014 – annual improvements 20112013 cycle amendments to
clarify the interaction between ias 40 and ifrs 3
ifric interpretation 21 
clarifies the identification and recognition of obligating events relating to the payment of levies
new standards amendments and interpretations not yet effective and not yet endorsed by the eu
ifrs 9 financial instruments
new standard setting out the recognition and measurement of financial assets financial liabilities and some contracts
to buy or sell nonfinancial items
ifrs 15 revenue from contracts with customers
new standard specifying how and when revenue should be recognised and guidance for more informative and
relevant disclosures
the directors do not expect that the adoption of the standards above will have a material impact on the financial
statements of the company in future periods beyond additional disclosure this will be subject to a more detailed
review once the standards have been endorsed by the eu
3 going concern
the financial statements have been prepared on a going concern basis which assumes that sufficient funds will be
available for the company to continue in operational existence for at least 12 months from the date of signing
microsaicpp2046  26032015  1549  page 28 microsaic systems plc annual report and financial statements 2014 29
the company’s business activities together with the factors likely to affect its future development performance and
position are set out in the strategic review sections within the annual report 
the company has been developing its technologies for the market place and as such has been absorbing funds the
company is now in the commercialisation phase of its development and the financing of operations in the future will
be from employment of existing cash reserves and revenue from product sales 
the directors have prepared trading and cash flow projections that extend beyond 12 months from the date of this
report these include increasing revenue levels which the directors believe will be derived from the sale of its products
and are supported by market feedback that has been received there is no certainty that the expected level of sales
will be achieved and if there were a significant shortfall it may be necessary for the company to secure alternative
sources of funding to enable it to remain a going concern whilst the company has been successful securing funding
in the past this is no guarantee that it will be possible in the future however the directors have a reasonable
expectation that the company will have access to sufficient funding to continue operations for at least 12 months from
the signing of this report and therefore they continue to adopt the going concern basis for the preparation of the
financial statements 
4 critical accounting estimates and judgements
accounting estimates and judgements are continually evaluated and are based on past experience and other factors
including expectations of future events that are believed to be reasonable under the circumstances
the company makes estimates and assumptions concerning the future the resulting accounting estimates could by
definition differ from the actual outcome 
the estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year are summarised below
going concern
the financial statements have been prepared on a going concern basis which assumes that sufficient funds will be
available for the company to continue in operational existence for at least 12 months more details are provided in
note 3
revenue recognition 
the revenue recognised from development contracts reflects management’s best estimate about the contract’s
outcome and stage of completion the company’s management assesses the contracts at each balance sheet date
including the costs to completion which are subject to estimation uncertainty 
amortisation of trademarks and patents 
capitalised costs relating to trademarks and patents are amortised over their estimated useful lives as the product
development programme is still ongoing and the lifetime of the company’s intellectual property is difficult to
determine the directors have applied a prudent estimate of five years this assumption is reviewed at each balance
sheet date and amended if required
share based payments 
the calculation of the share based payments expense utilises assumptions and estimates for example volatility future
exercise rates which may differ from actual results details of the assumptions are set out in note 23
research and development tax credits
the company recognises research and development tax credits receivable in cash as a current asset under the
heading corporation tax receivable these credits are subject to acceptance by hm revenue  customs and the
resulting cash receipt from hm revenue  customs may be greater or less than this amount
microsaicpp2046  26032015  1549  page 29 30 microsaic systems plc annual report and financial statements 2014
notes to the financial statements continued
for the year ended 31 december 2014
5 revenue
throughout 2014 the company operated in one business segment that of research development and commercialisation
of scientific instruments all of the company’s assets are held in the uk and all of its capital expenditure arises in the uk
the geographical analysis of revenue was as follows
year to year to
31 december 31 december
2014 2013
£ £
restated
uk 145465 69377
nonuk 1058171 839065
1203636 908442
further attribution of the nonuk revenue is not possible due to the nature of the sales via oem agreements which are
then distributed globally 
one customer represented 74 of total revenue 2013 84
6 government grants
included within the company’s other operating income for the year ended 31 december 2014 is £98637 2013
£157841 from uk government grants and european grant funded projects
in 2013 the company was awarded a grant of up to €308000 under the european commission’s 7th framework
programme as part of a consortium for a research project revenue of £95233 has been recognised to date as the
company believes it has fulfilled its practical and administrative obligations under this project and is committed to fulfilling
its future obligations which are subject to european commission reviews annually and final project signoff in 2015
in 2010 the company was awarded a grant of up to €964000 under the european commission’s 7th framework
programme as part of a consortium for a research project the project was completed during the year together with final
project signoff by the european commission revenue of £734932 was recognised over the duration of the project 
microsaicpp2046  26032015  1549  page 30 microsaic systems plc annual report and financial statements 2014 31
7 expenses by nature
year to year to
31 december 31 december
2014 2013
£ £
loss from operations is stated after chargingcrediting
amortisation of intangible assets 49256 56843
depreciation of property plant and equipment 121820 93261
loss on disposal of fixed assets 7977 –
provision for dilapidations 66667 –
pension costs 82417 60998
share based payments – equity settled 55850 74003
operating lease rentals – land and buildings 97400 78225
exchange lossgain 157 1785
research and development expenditure 858486 927379
directors’ emoluments 600857 467668
year to year to
31 december 31 december
2014 2013
£ £
services provided by the company’s auditors
fees payable to the company’s auditors for the audit of the financial statements 13000 13000
fees payable to the company’s auditors for other services
– tax compliance 5000 5000
– other 1800 –
19800 18000
8 finance income
year to year to
31 december 31 december
2014 2013
£ £
bank interest 5596 7843
microsaicpp2046  26032015  1549  page 31 32 microsaic systems plc annual report and financial statements 2014
9 tax on loss on ordinary activities
year to year to
31 december 31 december
2014 2013
£ £
domestic current period tax
uk corporation tax 100000 80000
adjustment for prior periods 54414 40516
current tax credit 154414 120516
tax on loss on ordinary activities 154414 120516
factors affecting the current tax credit for the period
loss before tax 3158534 2405674
loss before tax multiplied by standard rate of uk corporation tax 
of 20 2013 20 631707 481135
effects of
non deductible expenses 30772 18875
depreciation 25959 18652
capital allowances 13882 47592
research and development expenditure 20134 13523
tax losses carried forward 468724 397677
previous period research and development adjustment 54414 40516
current tax credit 154414 120516
the company has estimated tax losses of £10089000 2013 £7746000 available for carry forward against
future trading profits
10 basic and diluted loss per ordinary share
year to year to
31 december 31 december
2014 2013
loss after tax attributable to equity shareholders 3004120 2285158
weighted average number of ordinary 025p shares for the purpose of 
basic and diluted loss per share 54968708 48481309
basic and diluted loss per ordinary share 547p 471p
potential ordinary shares are not treated as dilutive as the company is loss making therefore the weighted average
number of ordinary shares for the purposes of the basic and diluted loss per share are the same
notes to the financial statements continued
for the year ended 31 december 2014
microsaicpp2046  26032015  1549  page 32 microsaic systems plc annual report and financial statements 2014 33
11 intangible assets
intangible assets comprise patents and trademarks owned by the company the cost is amortised on a straight line
basis over a five year period as this has been judged as their estimated useful life 
year ended 31 december 2014
£
cost
at 1 january 2014 372903
additions 33990
disposals –
at 31 december 2014 406893
amortisation
at 1 january 2014 241072
charge for the year 49256
disposals –
at 31 december 2014 290328
net book value
at 31 december 2014 116565
at 31 december 2013 131831
the gross carrying amount of fully depreciated assets still in use at 31 december 2014 is £179873
year ended 31 december 2013
£
cost
at 1 january 2013 342164
additions 59789
disposals 29050
at 31 december 2013 372903
amortisation
at 1 january 2013 213279
charge for the year 56843
disposals 29050
at 31 december 2013 241072
net book value
at 31 december 2013 131831
at 31 december 2012 128885
microsaicpp2046  26032015  1549  page 33 34 microsaic systems plc annual report and financial statements 2014
12 property plant and equipment
year ended 31 december 2014
plant and fixtures and
equipment fittings total
£££
cost
at 1 january 2014 644223 222815 867038
additions 45438 2085 47523
disposals 15954 – 15954
at 31 december 2014 673707 224900 898607
depreciation
at 1 january 2014 457932 198560 656492
charge for the year 84008 37812 121820
reclassification 69276 69276 –
disposals 7977 – 7977
at 31 december 2014 603239 167096 770335
net book value
at 31 december 2014 70468 57804 128272
at 31 december 2013 186291 24255 210546
the gross carrying amount of fully depreciated assets still in use at 31 december 2014 is £635364
year ended 31 december 2013
plant and fixtures and
equipment fittings total
£££
cost
at 1 january 2013 556103 123494 679597
additions 120221 99321 219542
disposals 32101 – 32101
at 31 december 2013 644223 222815 867038
depreciation
at 1 january 2013 476970 118362 595332
charge for the year 13063 80198 93261
disposals 32101 – 32101
at 31 december 2013 457932 198560 656492
net book value
at 31 december 2013 186291 24255 210546
at 31 december 2012 79133 5132 84265
notes to the financial statements continued
for the year ended 31 december 2014
microsaicpp2046  26032015  1549  page 34 microsaic systems plc annual report and financial statements 2014 35
13 inventories
year to year to
31 december 31 december
2014 2013
£ £
raw materials 187854 203538
work in progress 27523 1303
finished goods 25798 –
241175 204841
14 trade and other receivables
year to year to
31 december 31 december
2014 2013
£ £
amounts falling due within one year
trade receivables 183529 178132
other receivables 307207 126988
other taxes and social security 24660 110100
515396 415220
the ageing of trade receivables was as follows
year to year to
31 december 31 december
2014 2013
£ £
not past due 160187 164322
up to 30 days past due 23342 –
30 days to 60 days past due – 13810
more than 60 days past due – –
183529 178132
15 trade and other payables
year to year to
31 december 31 december
2014 2013
£ £
amounts falling due within one year
trade payables 315748 346323
other taxes and social security 59097 57029
other payables 44849 39449
accruals and deferred income 354449 269762
774143 712563
microsaicpp2046  26032015  1549  page 35 36 microsaic systems plc annual report and financial statements 2014
notes to the financial statements continued
for the year ended 31 december 2014
16 provisions
£
balance at 1 january 2014 –
movement during the year 66667
balance at 31 december 2014 66667
the provisions are in respect of anticipated dilapidations on the company’s leased property in woking whose lease
expires in september 2016
deferred tax
£
balance at 1 january and 31 december 2014 –
deferred taxation provided in the financial statements
31 december 31 december
2014 2013
£ £
accelerated capital allowances 21796 36321
tax losses carried forward 21796 36321
– –
a deferred tax asset in respect of tax losses has only been recognised to the extent of the deferred tax liability in
respect of accelerated capital allowances
17 share capital
number £
allotted called up and fully paid ordinary shares of 025p each
ordinary shares as at 31 december 2013 52508376 131271
ordinary shares issued for cash in the year 10745000 26862
ordinary shares as at 31 december 2014 63253376 158133
following adoption of new articles of association in april 2011 the company does not have a stated authorised share
capital the company has one class of share ordinary shares of 025p each with each share carrying one vote and
equal rights to discretionary dividends
the company issued the following ordinary shares of 025p each for cash in the year 
shares issue cash
issued price consideration
number p£
exercise of options – june 2014 58000 2586 14999
placing – october 2014 10500000 4200 4410000
exercise of options – october 2014 187000 2586 48358
10745000 4473357
microsaicpp2046  26032015  1549  page 36 microsaic systems plc annual report and financial statements 2014 37
18 reserves
the share premium account represents the excess over the nominal value for shares allotted less issue costs 
the share option reserve represents accumulated charges made under ifrs 2 in respect of share based payments
where share options expire unexercised at the end of their exercise period the amounts within the share option
reserve relating to those options are transferred to retained earnings
19 operating lease commitments
at the year end the company had future minimum lease payments under noncancellable operating leases which fall
due as follows
31 december 31 december
2014 2013
£ £
land and buildings
within one year 153524 97400
between one and two years 177536 164768
331060 262168
20 capital commitments
at the balance sheet date the company had the following capital commitments 
31 december 31 december
2014 2013
£ £
contracted for but not provided in the financial statements – –
21 directors’ emoluments 
year to year to
31 december 31 december
2014 2013
£ £
salaries and fees 488796 424629
other payments 81228 30974
pension costs 30833 12065
600857 467668
during the year 650000 options 2013 nil were granted to directors 158000 options 2013 nil were exercised
by directors
in the year to 31 december 2014 three directors accrued benefits under money purchase retirement benefit schemes
2013 two
there are no key management personnel other than the directors
further information is provided in the directors’ remuneration report
microsaicpp2046  26032015  1549  page 37 38 microsaic systems plc annual report and financial statements 2014
22 employees 
year to year to
31 december 31 december
2014 2013
number number
directors 7 7
other staff 32 28
39 35
year to year to
31 december 31 december
2014 2013
£ £
employment costs including directors
wages and salaries 1948109 1566991
social security costs 198241 180818
pension costs 82417 60998
employment related share based payments 55850 74003
2284617 1882810
23 sharebased payments
share option schemes
the company operates approved and unapproved share option schemes as a means of encouraging ownership and
aligning interests of staff and shareholders
year to 31 december 2014 year to 31 december 2013
weighted weighted
number of average number of average
options exercise price options exercise price
outstanding at the beginning of the year 2770991 468p 3312388 535p
granted during the year 930000 471p ––
cancelled during the year 300600 538p 541397 883p
exercised during the year 245000 2586p ––
outstanding at 31 december 3155391 478p 2770991 468p
exercisable at 31 december 619200 701p 904800 608p
notes to the financial statements continued
for the year ended 31 december 2014
microsaicpp2046  26032015  1549  page 38 microsaic systems plc annual report and financial statements 2014 39
the estimated fair values of the share options were calculated by applying the black scholes model the period of
exercise for all options granted is between 1 and 10 years from date of grant and the vesting periods last up to
five years from the date of grant the expected volatility has been determined by calculating the historical volatility
of the share price over the previous year the model inputs were
risk gross
share free expected dividend
date of grant price rate volatility yield
may 2006 10750p 525 35 –
february 2008 12931p 525 35 –
december 2010 2586p 150 75 –
april 2011 3200p 050 50 –
june 2012 4000p 050 33 –
july 2012 4200p 050 33 –
december 2012 3900p 100 33 –
may 2014 4680p 269 16 –
november 2014 4950p 205 18 –
 the share prices and corresponding option exercise prices for grants made up to 2010 have been adjusted for a bonus issue and share
subdivision that took place in april 2011
number number
latest of options of options
exercise exercise estimated 31 december 31 december
date of grant price date fair value 2014 2013
may 2006 4310p may 2015 795p 116000 116000
may 2006 4310p may 2016 795p 116000 116000
february 2008 12931p feb 2018 266p 226200 266800
december 2010 2586p dec 2020 110p 161000 406000
july 2012 4200p jul 2022 121p 330000 590000
december 2012 3900p dec 2022 136p 1276191 1276191
may 2014 4680p may 2024 114p 830000 –
november 2014 4950p nov 2024 119p 100000 –
3155391 2770991
share incentive plan sip
the sip has been withdrawn for new entrants during 2014 and an alternative plan is under consideration there is
currently one remaining employee within the plan it enabled all employees subject to minimum service criteria the
opportunity to take a continuing stake in the company it was approved by hmrc in november 2012 and operated for
the first time in 2013 a plan trust was established for the purposes of acquiring the company’s shares in accordance
with sip regulation employees could invest up to £1500 from gross pay in any one year which was used to acquire shares
known as ‘partnership shares’ and held within the plan trust the company was able to issue ‘matching shares’ in
proportion to the partnership shares and also award employees with ‘free shares’ matching shares and free shares
vested on the completion by the participating employee of a further three years’ service and certain other events and
could be withdrawn from the plan taxfree after five years’ service
at the year end the sip held 11977 ordinary shares 2013 17185 on behalf of the scheme participants the fair value
of the matching shares is taken as the company share price at the time of the granting and this is charged to the
statement of income over the three year vesting period the charge for 2014 was £458 2013 £458
microsaicpp2046  26032015  1549  page 39 24 financial instruments
the company’s financial instruments comprise cash and various trade receivables and trade payables that arise
directly from its operations no trading in financial instruments is undertaken
the main risks arising from the company’s financial instruments are liquidity currency and interest rate the board
oversees the management of these risks which are summarised below
liquidity risk
the company is financing its operations from equity funding provided by shareholders and revenues generated by the
business the company seeks to manage liquidity risk to ensure sufficient funds are available to meet requirements 
the company invests its cash reserves in bank and money market deposits as a liquid resource to fund its operations
the company’s strategy for managing cash is to maximise interest income at low risk whilst ensuring availability to
match the profile of the company’s cash flows
interest rate risk
the company does not face any significant interest rate risk as it has no borrowings
surplus funds are invested to maintain a balance between accessibility of funds and competitive rates of return whilst
investing funds safely
credit risk
the company manages its credit risk in cash and cash equivalents by spreading surplus funds between creditworthy
financial institutions 
the company is also exposed to credit risk attributable to trade and other receivables the maximum credit risk in
respect of the financial assets at each period end is represented by the balance outstanding on trade and other
receivables the company has limited exposure to credit risk as the majority of its trade and other receivables are
due from major international corporations and institutions 
year to year to
31 december 31 december
2014 2013
£ £
trade receivables 183529 178132
other receivables 307207 126988
490736 305120
foreign currency risk
the company is based in the united kingdom and the majority of its transactions are denominated in pounds sterling
the company has no long term commitments to purchase goods or services in foreign currencies purchases
denominated in foreign currency are expensed at the exchange rate prevailing at the date of the transaction and
comprise an immaterial proportion of the company’s total expenditure 
the only assets and liabilities denominated in foreign currencies relate to trade receivables and trade payables with
overseas counterparties together with small balances of us dollar and euro currencies to settle these liabilities the
risks and sums involved are considered to be immaterial
where a significant transaction in a foreign currency is anticipated with a high degree of certainty the company
takes out a forward exchange contract to mitigate the risk of currency fluctuation no such instruments were held
at 31 december 2014
40 microsaic systems plc annual report and financial statements 2014
notes to the financial statements continued
for the year ended 31 december 2014
microsaicpp2046  26032015  1549  page 40 fair values
the directors consider that there is no material difference between the book value and the fair value of the financial
instruments at 31 december 2014 and 31 december 2013
capital management
the company’s capital base comprises equity attributable to shareholders particularly as represented by cash as the
company’s focus has been on establishing itself as a successful supplier of scientific instruments the primary objective
in managing cash spend has been to achieve progress on product development and commercialisation in a cost
efficient manner and in managing liquidity risk to ensure the company continues as a going concern
25 related party transactions
the remuneration paid to the directors is shown in the directors’ remuneration report
there were no other related party transactions
26 control
as at 31 december 2014 no individual shareholder had a controlling interest in the company
27 subsequent events
there have been no significant events after the balance sheet date other than those disclosed in the chairman’s
statement and the strategic report
microsaic systems plc annual report and financial statements 2014 41
microsaicpp2046  26032015  1549  page 41 directors c j nicholl chairman
c r jump chief executive officer
a h darby
a s holmes
j c ramage 
e m yeatman
company secretary a s holmes
company number 3568010
company website wwwmicrosaiccom
registered office gms house
boundary road
woking
surrey
gu21 5bx
auditors saffery champness
chartered accountants
lion house red lion street
london
wc1r 4gb
bankers hsbc bank plc
95 gloucester road
london
sw7 4sx
solicitors dorsey  whitney europe llp
199 bishopsgate
london
ec2m 3ut
nominated adviser and broker numis securities limited
the stock exchange building
10 paternoster square
london
ec4m 7lt
registrars capita asset services
the registry
34 beckenham road beckenham 
kent
br3 4tu
financial pr citigate dewe rogerson limited
3 london wall buildings
london wall
london
ec2m 5sy
42 microsaic systems plc annual report and financial statements 2014
corporate information and advisors
microsaicpp2046  26032015  1549  page 42 microsaic systems plc annual report and financial statements 2014 43
notice of the annual general meeting
microsaic systems plc
company number 3568010
notice is hereby given that the annual general meeting of microsaic systems plc the “company” shall be held at the
offices of citigate dewe rogerson 3 london wall buildings london wall london ec2m 5sy on 19 may 2015 at
11 am for the purpose of considering and if thought fit passing the following resolutions of which resolutions 1 to 5
inclusive shall be proposed as ordinary resolutions and resolution 6 shall be proposed as a special resolution
ordinary resolutions
1 that the company’s financial statements for the year ended on 31 december 2014 together with the directors’
report and auditors’ report thereon be and are hereby received and adopted
2 that upon the recommendation of the directors saffery champness be and hereby are reappointed as auditors to
the company and that the board be authorised to fix the remuneration of the auditors
3 that andrew holmes be and hereby is reappointed as a director of the company following his retirement pursuant
to article 811b of the articles
4 that colin jump be and hereby is reappointed as a director of the company following his retirement pursuant to
article 811c of the articles
5 that the directors be and are hereby generally and unconditionally authorised in accordance with section 551
of the companies act 2006 to exercise all the powers of the company to allot equity securities as defined by
section 560 of the companies act 2006 up to an aggregate nominal value of £5282115 representing one third
of the company’s issued share capital at the date of this document provided that this authority shall unless renewed
varied or extended by the company in general meeting expire on the date which is 15 months after the date on
which this resolution is passed or if earlier on the conclusion of the next annual general meeting of the company
save that the company may before such expiry make an offer or agreement which would or might require equity
securities to be allotted after such expiry and the directors may allot such equity securities in pursuance of such offer
or agreement as if this authority had not expired and provided further that this authority shall revoke and replace all
unexercised authorities previously granted to the directors to allot shares but without prejudice to any allotment of
shares or grant of rights already made offered or agreed to be made pursuant to such authorities
special resolution
6 that the directors be and are hereby empowered pursuant to section 570 of the companies act 2006 to allot
equity securities as defined by section 560 of the companies act 2006 for cash as if section 5611 of the
companies act 2006 did not apply to any such allotment provided that this power shall be limited to
a the allotment of equity securities pursuant to an offer or issue by way of rights open offer or other preemptive
offer
i to the holders of ordinary shares in the capital of the company and other persons entitled to participate
therein in proportion as nearly as may be practicable to their respective holdings and
ii to holders of other equity securities as required by the rights of those securities or as the directors otherwise
consider necessary but subject to such exclusions or other arrangements as the directors may deem
necessary or expedient in relation to treasury shares fractional entitlements record dates legal or practical
problems in or under the laws of any territory or the requirements of any regulatory body or stock exchange 
microsaicpp2046  26032015  1549  page 43 44 microsaic systems plc annual report and financial statements 2014
notice of the annual general meeting continued
b the allotment otherwise than pursuant to resolution 7a above of equity securities up to an aggregate nominal
amount of £1584634 representing ten 10 per cent of the company’s issued share capital at the date of this
document and such power shall expire if it has not previously expired by nonfulfilment of conditions on the
date which is 15 months after the date on which this resolution is passed or if earlier the conclusion of the
company’s next annual general meeting unless renewed varied or revoked by the company prior to or on such
date save that the company may before such expiry make offers or agreements which would or might require
equity securities to be allotted after such expiry and the directors may allot equity securities in pursuance of any
such offer or agreement notwithstanding that the power conferred by this resolution has expired
provided that this authority revokes and replaces all unexercised powers previously granted to the directors to allot
equity securities as if section 5611 of the companies act 2006 did not apply but without prejudice to any allotment
of equity securities already made or agreed to be made pursuant to such authorities 
by order of the board
andrew holmes
company secretary
27 march 2015
explanatory comments on the resolutions proposed at the annual general meeting the “meeting” of the
company to be held at the offices of citigate dewe rogerson 3 london wall buildings london wall london
ec2m 5sy on 19 may 2015 at 11 am
resolution 1 – the company is required by its articles and by the companies act 2006 to lay the directors’ and auditors’
reports and copies of the annual accounts before the meeting 
resolution 2 – this resolution concerns the reappointment of saffery champness “sc” recommended by the directors
as auditors to the company whilst resolving to reappoint sc as auditors to the company the resolution also authorises
the board to fix the auditors’ remuneration
resolutions 3 to 4 – a minimum of one third of the directors are also required to retire each year and seek
reappointment at the meeting biographies of the directors are contained in the company’s annual report for the
year ended 31 december 2014
resolutions 5 and 6 – these resolutions concern the authority of the directors to allot up to one third of the company’s
existing issued share capital including up to 10 per cent as if the statutory preemption rights did not apply so as to raise
funds at short notice
please also read the notes below which provide further information in respect of the meeting
registered office
gms house
boundary road
woking
surrey
gu21 5bx
microsaicpp2046  26032015  1549  page 44 microsaic systems plc annual report and financial statements 2014 45
the following notes explain your general rights as a shareholder and your rights to attend and vote at the
meeting or to appoint someone else to vote on your behalf
notes
quorum
1 the quorum for the meeting shall be two shareholders present in person or by proxy if within fifteen minutes from the
appointed time for the meeting a quorum is not present then the meeting will stand adjourned to the same day in the
next week or if that day is a public holiday to the next working day thereafter at the same time and place or to such
other day time or place as the directors may determine and no notice of such adjournment need be given at an
adjourned meeting shareholders present in person or by proxy will form a quorum
website address
2 information regarding the meeting including information required by section 311a of the companies act 2006 is
available from wwwmicrosaiccom
entitlement to attend and vote
3 only those holders of ordinary shares of 025p each in the capital of the company “shares” registered on the
company’s register of members at 6 pm on 15 may 2015 shall be entitled to attend and vote at the meeting
appointment of proxies
4 members entitled to attend speak and vote at the meeting in accordance with note 3 above are entitled to appoint
one or more proxies to attend speak and vote in their place if you wish to appoint a proxy please use the form of proxy
enclosed with this document the “form of proxy” in the case of joint members only one need sign the form of proxy
the vote of the senior joint member will be accepted to the exclusion of the votes of the other joint members for this
purpose seniority will be determined by the order in which the names of the members appear in the register of members
in respect of the joint shareholding the completion and return of the form of proxy will not stop you attending and
voting in person at the meeting should you wish to do so a proxy need not be a member of the company you may
appoint more than one proxy provided each proxy is appointed to exercise the rights attached to a different share or
shares held by you if you choose to appoint multiple proxies use a separate copy of this form which you may
photocopy for each proxy and indicate after the proxy’s name the number of shares in relation to which they are
authorised to act which in aggregate should not exceed the number of shares held by you please also indicate if the
proxy instruction is one of multiple instructions being given all forms must be signed and returned in the same envelope
5 you can appoint the chairman of the meeting or any other person as your proxy if you wish to appoint someone other
than the chairman cross out the words “the chairman of the meeting” on the form of proxy and insert the full name of
your appointee
6 you can instruct your proxy how to vote on each resolution by ticking the “for” and “against” boxes as appropriate or
entering the number of shares which you are entitled to vote if you wish to abstain from voting on any resolution please
tick the box which is marked “vote withheld” it should be noted that a vote withheld is not a vote in law and will not be
counted in the calculation of the proportion of votes “for” and “against” a resolution 
if you do not indicate on the form of proxy how your proxy should vote heshe can exercise hisher discretion as to
whether and if how so how heshe votes on each resolution as heshe will do in respect of any other business including
amendments to resolutions which may properly be conducted at the meeting
a member that is a company or other organisation not having a physical presence cannot attend in person but can
appoint someone to represent it this can be done in one of two ways either by the appointment of a proxy described in
notes 4 to 6 above or of a corporate representative members considering the appointment of a corporate
representative should check their own legal position the company’s articles of association and the relevant provision of
the companies act 2006
a company incorporated in england and wales or northern ireland should execute the form of proxy under its common
seal or otherwise in accordance with section 44 of the companies act 2006 or by signature on its behalf by a duly
authorised officer or attorney whose power of attorney or other authority should be enclosed with the form of proxy
microsaicpp2046  26032015  1549  page 45 appointment of proxies
7 the form of proxy and any power of attorney or a notarially certified copy or office copy thereof under which it is
executed must be received by capita asset services at pxs1 34 beckenham road beckenham br3 4zf  united
kingdom at 11 am on 15 may 2015 in respect of the meeting any forms of proxy received before such time will
be deemed to have been received at such time in the case of an adjournment the form of proxy must be received
by capita asset services no later than 48 hours before the rescheduled meeting
on completing the form of proxy sign it and return it to capita asset services at the address shown on the reverse of the
form of proxy as postage has been prepaid no stamp is required you may if you prefer return the form of proxy in a
sealed envelope to the following address freepost capita pxs this is all that is required on the envelope
termination of proxy appointments
8 in order to revoke a proxy instruction you will need to inform the company please send a signed hard copy notice clearly
stating your intention to revoke your proxy appointment to capita asset services at pxs1 34 beckenham road
beckenham br3 4zf  united kingdom
in the case of a member which is a company incorporated in england and wales or northern ireland the revocation
notice must be executed under its common seal or otherwise in accordance with section 44 of the companies act 2006
or by signature on its behalf by an officer or attorney whose power of attorney or other authority should be included with
the revocation notice 
if you attempt to revoke your proxy appointment but the revocation is received after the time of the meeting or the taking
of the vote at which the proxy is used then subject to the paragraph directly below your proxy will remain valid
if you submit more than one valid proxy appointment in respect of the same shares the appointment received last before
the latest time for receipt of proxies will take precedence
completion of a form of proxy will not preclude a member from attending and voting in person if you have appointed a
proxy and attend the meeting in person your proxy appointment will be automatically terminated
issued shares and total voting rights
9 the total number of shares in issue in the capital of the company at the date of this notice is 63385376 ordinary
shares of 025p each 
on a vote by a show of hands every holder of shares who being an individual is present in person by proxy or being
a corporation is present by a duly authorised representative not being himself a member shall have one vote on a poll
every holder of shares who is present in person or by proxy shall have one vote for every complete share held by him
and such proportion of a vote that represents the number of fractions of a share so held
communication
10 except as provided above members who have general queries about the meeting should use the following means of
communication no other methods of communication will be accepted
• calling capita asset services’ shareholder helpline lines are open from 900 am to 530 pm monday to friday
excluding public holidays
i from the uk 0871 664 0300 calls cost 10p per minute plus network extras
ii from outside the uk 44 0 208 639 3399 calls from outside the uk are charged at applicable
international rates or
• in writing to capita asset services at the registry 34 beckenham road beckenham br3 4tu united kingdom
you may not use any electronic address provided either
• in this notice of meeting or
• any related documents including the form of proxy for this meeting to communicate with the company for any
purposes other than those expressly stated
46 microsaic systems plc annual report and financial statements 2014
notice of the annual general meeting continued
microsaicpp2046  26032015  1549  page 46 linkway financial printers
typeset  printed in london uk 16467
microsaic cover 4pp covermicrosaic cover 4pp cover  27032015  0928  page 4 microsaic systems plc
gms house
boundary road
woking
surrey  gu21 5bx
uk
t  44 01483 751577
f  44 01483 757901
e  infomicrosaiccom
w wwwmicrosaiccom
  
  
  
 
 
   
    
    
  
 
microsaic cover 4pp covermicrosaic cover 4pp cover  27032015  0928  page 1


Summary:
 4 microsaic systems plc annual report and financial statements 2014
microsaic has enjoyed another highly
productive year in 2014 making good
progress in our ongoing evolution into a
successful commercial business we
continued to execute our strategy of
developing commercial partnerships with
international suppliers of complementary
equipment so that we can sell our products
through their existing sales channels in
parallel we made significant technological
advances that will in time give us the
capability needed for our next generation
of products these will further broaden the
range of applications that our miniaturised
mass spectrometry ms instruments can
address
our technology and our products
microsaic’s chipbased technology has allowed us to
miniaturise the mass spectrometer – the gold standard for
chemical analysis – far beyond any other product on the
market this miniaturisation greatly simplifies deployment
drastically reducing the overall cost of ownership and
makes ms much more accessible to lab scientists than it
has ever been before 
today we market two products our lead ms instrument is
the microsaic 4000 mid
®
 officially launched in march
2013 sales of this product increased during the year
mainly through our oem partner biotage ab which
features the 4000 mid
®
as a core component of its
isolera™ dalton instrument in january 2014 we launched
the midas™ compact interface module this unit has been
designed to extend the use of ms in the laboratory from
specialist analytical chemists to the wider research
community the midas™ unit connects to the 4000 mid
®
and offers automated sample preparation and handling for
direct ms analysis in realtime at the lab bench or in the
fume hood
commercial strategy
the main route to market for our product is as an original
equipment manufacturer oem through partnerships with
companies that have established global sales channels
these companies also have complementary products that
when combined with our product can deliver synergistic
benefits for the end users 
we signed additional agreements during 2014 with gilson
inc and with a leading global scientific company
our agreement with gilson is for our 4000 mid
®
to be
combined with gilson’s high performance liquid
chromatography instruments i am pleased to report that
initial units were shipped during january 2015 to gilson
where further development of the final combined product is
being conducted
our agreement with a leading global scientific company is
for our triple quadrupole technology for use in applied
markets triple quadrupole technology provides us with an
opportunity to extend the application of ms to the analysis
of more complex materials such as food medical or
environmental samples
since the yearend we have signed a further oem
agreement with ge healthcare for a customised version of
our 4000 mid
®
to be deployed together with the midas™
in combination with ge healthcare’s instruments as an
innovative new analytical instrument for use in research and
healthcare applications
strategic report – chief executive’s review
for the year ended 31 december 2014
microsaicpp0107  26032015  1549  page 4 microsaic systems plc annual report and financial statements 2014 5
while commercial sensitivities prevent us disclosing more
detail on the agreements we have signed or specific
applications being targeted we can state that we are
delighted with the high quality of our partners and the
strong working relationships we have established this gives
us confidence that resulting products have the best
opportunity to fulfil their commercial potential 
outsourcing the manufacture of the nonchip based
components of the 4000 mid
®
in preparation for
production scale up was a key strategic aim during 2014
we were delighted therefore to sign an agreement in
september 2014 with plexus a leading manufacturer to
technology companies the handover process is complete
and the first finished units were delivered to us in early
2015
furthermore since the yearend we have signed a
distributor agreement with kinesis a leading international
supplier of analytical consumables and equipment for the
distribution of the microsaicbranded 4000 mid
®
in the uk
europe and india demonstration units have already been
ordered and delivered
we will continue to develop relationships with new potential
commercial partners in the pharma biotech and other
targeted sectors
finally to support our commercial strategy we achieved
iso 9001 accreditation during 2014
rd
our marketing plan for 2014 continued to be directed
towards positioning microsaic as a solution provider for
chemical analysis rather than simply as a mass
spectrometer vendor 
in line with this plan we have been leveraging our technical
expertise to develop nextgeneration products that we
believe will significantly expand the range of applications
that our innovative ms instruments can address and that
endusers will increasingly demand
in january 2014 we launched the midas™ compact
interface module described earlier
our rd in 2015 will be directed towards achieving
technical milestones in our oem partnership opportunities
as well as developing nextgeneration products to expand
our range of applications
microsaic maintains a large portfolio of patents of which
52 are granted
people
we have made significant investment in our business
development customer services and engineering teams
over the last 18 months to position the company for future
commercial growth the emphasis over the next 12 months
will be to apply these teams in the execution of the business
we have already won we will continue to recruit new talent
where it will complement the existing team in order to
maintain a marketleading position
the company’s scientific advisory group formed in 2013
met a number of times during the year and has made
valuable contributions to the product marketing plan going
forward
performance measurement
the ongoing performance of the company is managed and
monitored using a number of key performance indicators 
the company’s revenues are monitored as follows
year to year to 
31 december 31 december 
2014 2013 incdec
revenue metrics £ £
products 1010062 835770 21
consumables 102333 59232 73
revenues comprise sales of products consumables thereon
and service income associated with delivering the products
the growth in consumables income reflects the growing
user base
the company’s profit and cash are monitored as follows
year to year to 
31 december 31 december 
2014 2013 incdec
profit  cash metrics £ ££
loss before share 
based payments 
interest  tax 3108280 2339514 –33
cash used in 
operating and 
investing activities 2878993 2552302 –13
cash and cash 
equivalents 4548545 3239283 40
the company’s profitability is monitored through monthly
forecasting which tracks where the business is and where it
is forecast to be at a certain date the cash position is
monitored on a daily basis and reforecast monthly
the progress of the company’s research and development
programmes is reviewed on a monthly basis by the senior
management team progress is summarised for the board
microsaicpp0107  26032015  1549  page 5 financial results
in line with the company’s transition from grantgenerated
revenues to product sales an accounting policy change
has been made to make the financial information more
relevant this will also make it easier for users to
understand the financial statements accordingly
nonproduct sales are now presented under ‘other
operating income’ and cost of sales and operating
expenses have been recategorised so that cost of sales
now includes only the raw materials cost of products sold
operating expenses represents the cost base of the
business as a result of this accounting policy change
comparative figures have been restated 
revenues increased 32 to £1203636 2013
£908442 product sales increased by 21 with a full in
year contribution from biotage and consumables increased
by 73 reflecting the growing user base in line with the
company’s transition from being reliant on income from
eu grants and prototype sales other operating income was
lower at £102145 2013 £256793 gross margins were
42 2013 36 and accordingly gross profit was
£503456 2013 £326919 
we have noted that one distribution channel has delivered
softer than expected product sales in early 2015 the
causes of this issue have been identified and management
is taking steps to address this the recently signed oem
agreements will begin contributing to sales growth as
further new products are launched anticipated in h2 2015
and 2016
operating expenses excluding sharebased payments were
£3713881 2013 £2923226 the increase in
operating expenses was mainly due to the company’s
investment in the building of oem partnerships all of which
are located overseas and the investment in the
manufacturing process to make it capable of being
outsourced and ready for mass production 
therefore the loss for the period before sharebased
payments tax and interest was £3108280 2013
£2339514 
in october the company placed 10500000 ordinary
shares with new and existing shareholders this represented
a 20 increase in the company’s issued share capital the
gross proceeds raised from the issue amounted to
£44 million the cash position at 31 december 2014 was
£455 million 2013 £324 million
as with previous years the going concern basis has
continued to be adopted in preparing the financial
statements following the progress made by the company
to date and the progress anticipated in the near term the
directors have a reasonable expectation that the company
will have access to adequate funds to continue operations
for at least 12 months further details are provided in the
notes to the financial statements
outlook 
the board is pleased with the progress that microsaic has
made across all areas of its business in 2014 we have
signed a further three oem agreements targeting specific
applications a manufacturing agreement that provides
capacity to meet expected commercial demand and a
distributor agreement for our own branded instruments in
key markets together this provides microsaic with a strong
base for the business to move forward and is a significant
step forward from our position 12 months ago 
we are continuing to gain increasing recognition for the
potential of our innovative ms technologies and new
products within the scientific analytical instrumentation
market where we believe we have an opportunity to make
ms accessible across a broader range of applications and
to a much larger number of lab scientists than ever before
we are focused on three business objectives that underpin
our ambitions for 2015 and beyond
• executing on our existing oem agreements and
distributor agreement
• developing further oem partnerships with synergistic
companies which can provide microsaic with access to
enhanced sales distribution channels alongside our
own direct sales channel and
• furthering innovation and maintaining a leadership
position in the field of miniaturised ms which
continues to be a core driver of our ongoing
commercial strategy
all our activities are aligned to these priorities our ‘plug 
play’ usability designs remain unique and the increasing
market acceptance of our chipbased technology will
provide the platform for further growth and differentiation
from competitors we remain intent on broadening the
application base and enhancing user experience of the
mid
®
in order to make it the benchtop analytical tool of
choice for chemists it is my belief that these strengths and
focused strategy continue to put microsaic systems in a
strong position to capitalise in an evolving market
6 microsaic systems plc annual report and financial statements 2014
strategic report – chief executive’s review continued
for the year ended 31 december 2014
microsaicpp0107  26032015  1549  page 6 risk management 
the company manages risk and opportunity from an
operational basis where it assesses and weighs up the
financial effect of risk and opportunity on the goals of the
company the company has set a risk tolerance level of
£50000 and reviews on a monthly basis those risks above
this level
the company’s top five risksopportunities at 31 december
2014 were
risks
risk rating risk rating 
description risk premitigation mitigating action postmitigation
high mediumlow
high mediumlow
medium low
mediumlow low
opportunity
opportunity rating opportunity rating
description opportunity premitigation mitigating action postmitigation
high mediumlow
the strategic report was approved by the board of
directors on 20 march 2015 and signed on its behalf by
colin jump
chief executive officer
failing to deliver on
customer expectations
the risk is that
microsaic would lose
an important customer
investment in rd and
service teams to ensure
customer expectations
are met
losing competitive
advantage
the risk that a new
entrant to the market
might capture market
share
investment in strong
commercial presence
and rd
the theft of intellectual
property
the loss of ip could
lead to a competitor
developing competing
products
the action would
require both physical
product and domain
knowledge the latter
being protected
contractually
the rate of cash burn in
the commercialisation
phase
that existing cash
resources and access to
cash resources would be
insufficient to cover the
commercialisation
phase and cash runs out
the company has
good controls in place
to monitor cash
management and
performs longterm
forecasting 
a new oem
opportunity is missed
the risk that the
company does not
identify a valuable new
oem opportunity
investment in
marketing promotion
of brand attendance at
trade shows
executives’ knowledge
of the market
microsaic systems plc annual report and financial statements 2014 7
microsaicpp0107  26032015  1549  page 7