How sector expertise transformed First Light Fusion’s audit experience

About First Light Fusion

Founded in 2011, First Light Fusion is the UK’s leading inertial fusion company, developing nuclear fusion technology with unique amplifier capabilities offering commercial opportunities today. An Oxford University spinout, the company operates with around 80 employees and is working to commercialise its fusion energy, selling their technology to international markets including the United States.

The VC-backed company operates in the energy sector where traditional business models simply don’t apply. Despite being pre-revenue, First Light Fusion manages substantial R&D expenditure as it develops technology that could transform the energy landscape.

The challenges

First Light Fusion had worked with Big Four firms for several years, initially selected to support ambitious growth plans. When the company shifted strategic direction towards faster commercialisation and a tighter focus, the management team decided to reassess their audit requirements.

The company faced quite specific challenges. Operating in an emerging industry means traditional audit comparisons and established benchmarks simply don’t exist. They needed a firm that could adapt their audit approach to First Light Fusion’s business model and unique circumstances.

First Light Fusion needed a firm that understood its position as a pre-revenue business with significant expenditure but limited corporate infrastructure. While its financial numbers might suggest a large organisation, the reality is around 80 people without extensive compliance and finance departments.

They also needed deep understanding of VC-backed businesses, particularly around going concern considerations and R&D expenditure treatment. Rather than theoretical guidance, they wanted practical advice that recognised their specific circumstances.

How Gravita helped

Gravita brought genuine sector expertise and understanding of VC-backed companies. Our long-standing relationship with Oxford University and extensive experience with university spinouts proved invaluable.

Audit Partner Katherine Wilkes and her team provided practical guidance that went beyond regulatory references. When challenges arose, rather than directing the company to accounting standards, we offered workable solutions and collaborated to develop appropriate approaches.

Planning proved particularly effective despite a later start than their previous auditor’s October timeline. We implemented an efficient process starting in March with clear timetables that were followed closely. Crucially, we provided all audit deliverable requirements upfront, so First Light Fusion knew exactly what information was needed before fieldwork began.

Having all requirements clearly communicated in advance meant the audit could start with everything properly prepared and uploaded to the system. The software enabled immediate feedback, with our team quickly processing and providing prompt responses when information was uploaded. This eliminated the frustration of revisiting issues weeks later and allowed for quick corrections when needed.

Throughout the engagement, our team was well-prepared, asked relevant questions and approached complex situations with clarity. We maintained responsive communication and professional standards that impressed both the finance team and audit committee.

The result was what the company describes as their smoothest audit in years. First Light Fusion found the experience reinforced their decision to move away from their Big Four firm, confident they had chosen the right partner to support their continued growth.

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