COINSILIUM GROUP LIMITED - Final Results PR Newswire

1 June 2016

COINSILIUM GROUP LIMITED
(“Coinsilium” or the “Group")

Audited Financial Results for the period from Incorporation to 31 December 2015

Coinsilium Group Limited (“Coinsilium” or the “Company”), the ISDX quoted, blockchain investment and development company, is pleased to announce its audited financial results for the period from incorporation on 25 September 2014 until 31 December 2015

HIGHLIGHTS

Financial

    --  Total group loss of £2,415,746
    --  Cash proceeds of £2,163,883 (net of expenses) during the period from the
        issue of shares.
    --  Investment of £1.53m in eleven primarily blockchain focused companies
        through a mixture of cash (£599,925) and the issue of shares in
        consideration for the purchase of the assets of Seedco Ventures Limited
        and TRAC Technology Limited.
    --  Value of the investment portfolio at 31 December 2015 was £1,616,370, an
        increase of 6% from its book value.
    --  At the period end, the Group had £984,023 in cash and cash equivalents.

Post Period End

    --  Increased stake in three existing investee companies; Factom, Fuzo and
        SatoshiPay
    --  Initial investment in Rootstock, a smart contracts platform
    --  Block Chain Space accelerator programme launched in Barcelona in
        February resulting in four new investee companies
    --  In April, the Group launched the first week-long Blockchain Tech Lab
        aimed at developers based in London with speakers and participants from
        around the world.

CHAIRMAN’S STATEMENT

It gives me great pleasure to present the first annual report and financial statements of the Group for the period from incorporation until 31 December 2015.

Review of the Period

During the period to 31 December 2015, the Group established itself as a group of companies whose principal activity is investing in blockchain technologies with a particular focus on fintech. A blockchain is an immutable decentralised ledger that chronologically records the transfer of ownership of digital assets. 

The Group built up a portfolio of interests in blockchain and fintech related companies. In addition, through the experience of the Directors, the Group began to develop a suite of services including corporate/business, advisory, media & communications, investment solutions, education and other professional services to blockchain/fintech companies.

On 24 December 2015, Coinsilium Group Limited was admitted to trading on the ISDX Growth Market following a fundraising of £1.1m via a placing and crowdfunding at 10p per share, becoming the world's first blockchain technology focused company to be admitted to trading on an Exchange Regulated Market.

The Group recorded a loss after tax for the period of £2,415,746. This included the write down on the investment in Hive Labs Limited which was as a direct result of the cessation of the development of the Hive wallet due to a lack of resources.

The value of the investment portfolio at 31 December, after accounting for Hive, was £1,616,370 an increase of 6% from its book value.

At the year end, the Group had £984,023 in cash and cash equivalents.

Post Period End

The Board is now committed to a re-focused strategic path that looks beyond the Group’s initial phase and towards growing a notable blockchain investment group that generates value for shareholders. Whilst current and future investments remain our principal driver, we will seek to grow a number of exciting revenue streams which complement our investment activities. 

The investment strategy of the Group is to acquire strategic interests in early stage start-ups within the blockchain arena. Since the period end, the Group has continued to review investment opportunities and stakes were increased in three investee companies; Factom, Fuzo and SatoshiPay.

We were also excited to announce the acquisition of a seed stake in RSK Labs. RSK operates “Rootstock”, a smart-contract platform built as a sidechain of the Bitcoin blockchain that adds value and functionality to the core Bitcoin network by enabling smart contracts.

Block Chain Space, our accelerator programme, also gives the Group the opportunity to take key investments in participating early-stage companies before accelerating their development and potentially divesting. Through the inaugural programme in Barcelona in early 2016, we acquired shares in four participants: Minebox, Helperbit, Consentio, BitcoinForMe. The success of this initial Block Chain Space has resulted in plans being made for similar programmes to be launched, with partners, around the world.

During the remainder of 2016, we anticipate at least three of our investee companies will be raising further funds and there may be opportunities to divest some of the Group’s stakes in these and our other investments, in whole or part.

Alongside our investment activities, the Group is now focused on exploiting its success in the education arena, as Coinsilium Training, which has placed us at the forefront of both professional and technical development. The monthly CPD accredited Bitcoin, Blockchain and Beyond has proved popular with professional organisations including leading accountancy, legal and insurance firms. In April 2016 we hosted the inaugural Blockchain Tech Lab for one week in London where 12 world-leading experts in blockchain applications came to teach over 30 software developers and coders, many of whom were sponsored by employers, signalling a growing awareness of the blockchain skills gap and a desire to get staff trained.

Outlook

Recent research by Coindesk highlights that investment in blockchain related activities surpassed the bitcoin sector, whilst the number of blockchain/hybrid startups has climbed four-fold in the last year. The Group is well positioned geographically as the UK continues to attract a significant level of fintech interest and investment. Interest in bitcoin, blockchain and their applications continues to grow rapidly. The Digital Chamber of Commerce has stated that the regulatory landscape is becoming increasingly favourable to blockchain as regulators realise the potential advantage to regulated activities.  

Board Changes

Cameron Parry, the Group’s previous Chairman stepped down from the Board at the end of March 2016.  Cameron was instrumental in achieving the ISDX admission and I would like to thank him for his contribution to the Group. My thanks also go to Malcolm Pallé and Paul Johnson who also served on the Board during the period before leaving in November 2015.

Finally, I would also like to thank our shareholders for their support over the last year and I look forward to updating them with news of how both Coinsilium and our investee companies continue to make progress in this promising and exciting environment.  We now look ahead with a restructured board and a strategy that I believe will allow us to exploit our first-mover advantage and the interest in blockchain across many industries.

Laurent Kssis

1 June 2016

STATEMENTS OF COMPREHENSIVE INCOME

FOR THE PERIOD FROM 25 SEPTEMBER 2014

TO 31 DECEMBER 2015


                                                                   Group

                                                              31 December 2015

                                                                             £

Continuing Operations

Revenue                                                                 11,870

Cost of sales                                                          (7,985)

Gross profit                                                             3,885

Administration expenses                                            (1,026,361)

Impairment                                                         (1,312,059)

Share based payments                                                  (81,275)

Operating Loss                                                     (2,415,810)

Financial income                                                            65

Financial expenses                                                         (1)

Loss Before Taxation                                               (2,415,746)

Income tax expense                                                           -

Loss for the year                                                  (2,415,746)

Other Comprehensive Income:

Fair value gain on available for sale financial assets                 287,905

Items that may be subsequently reclassified to profit or loss                -

Total Comprehensive Income attributable to owners of the           (2,127,841)
Parent

Earnings per share (pence) from continuing operations                   (0.04)
attributable to owners of the Parent – Basic & Diluted





STATEMENTS OF FINANCIAL POSITION
FOR THE PERIOD FROM 25 SEPTEMBER 2014
TO 31 DECEMBER 2015


                                                       Group

                                                  31 December 2015

                                                                 £

Non-Current Assets

Intangible assets                                                -

Property, plant and equipment                                  508

Available for sale financial assets                      1,452,035

Investment in subsidiaries                                       -

Other financial assets                                     164,335

                                                         1,616,878

Current Assets

Trade and other receivables                                 59,058

Cash and cash equivalents                                  984,023

                                                         1,043,081

Total Assets                                             2,659,959

Equity attributable to owners of the Parent

Share capital                                                    -

Share premium                                            4,377,396

Share option reserve                                        81,275

Available for sale reserve                                 287,905

Retained losses                                        (2,415,746)

Total equity attributable to owners of the Parent        2,330,830

Current Liabilities

Trade and other payables                                   329,129

Total Liabilities                                          329,129

Total Equity and Liabilities                             2,659,959



The Financial Statements were approved and authorised for issue by the Board of Directors on 1 June 2016 and were signed on its behalf by:

Eddy Travia
Executive Director


STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD FROM 25 SEPTEMBER 2014
TO 31 DECEMBER 2015

 


GROUP                       Attributable to Equity Shareholders

                Share     Share Share option Available    Retained       Total
              capital   premium      reserve  for sale      losses           £
                    £         £            £   reserve           £
                                                     £

As at              -*         -            -         -           -           -
Incorporation

Loss for the        -         -            -         - (2,415,746) (2,415,746)
year

Other
comprehensive
income

Fair value          -         -            -   287,905           -     287,905
gain on
available for
sale
financial
assets

Total               -         -            -   287,905 (2,415,746) (2,127,841)
comprehensive
income for
the year

Transactions
with owners

Issue of            - 4,652,870            -         -           -   4,652,870
ordinary
shares

Issue costs         - (275,474)            -         -           -   (275,474)

Share based         -         -       81,275         -           -      81,275
payments

Total               - 4,377,396       81,275         -           -   4,458,671
transactions
with owners

As at 31            - 4,377,396       81,275   287,905 (2,415,746)   2,330,830
December 2015



* One share issued on incorporation at £Nil par value.



STATEMENT OF CASH FLOWS
FOR THE PERIOD FROM 25 SEPTEMBER 2014
TO 31 DECEMBER 2015

 


                         Group

                                                   2015
                                                      £

Cash flows from operating activities

Loss before taxation                                   (2,415,746)

Adjustments for:

Finance Income                                                (65)

Depreciation                                                   132

Amortisation                                                   600

Impairment of intangible assets                          1,110,722

Impairment of available-for-sale financial assets          200,737

Impairment of investment in subsidiaries                         -
Share based payment                                         81,275

Directors fees paid in shares                              140,000

Creditors balances settled in shares                        33,513

Increase in trade and other receivables                   (59,058)

Increase in trade and other payables                       329,130

Net cash used in operating activities                    (578,760)

Cash flows from investing activities

Interest received                                               65

Purchase of intangible assets                                (600)

Purchase of property, plant & equipment                      (640)

Purchase of financial assets                             (164,335)

Available for sale financial assets                      (435,590)

Investment in subsidiary undertakings                            -

Loans granted to subsidiary undertakings                         -

Net cash used in investing activities                    (601,100)

Cash flows from financing activities

Proceeds from issue of shares                            2,439,357
Cost of share issue                                      (275,474)

Net cash generated from financing activities             2,163,883

Net (decrease) / increase in cash and cash equivalents     984,023

Cash and cash equivalents at beginning of year                   -

Cash and cash equivalents at end of year                   984,023



Major Non Cash Transactions

On 31st March 2015, 20,500,000 ordinary shares of £nil par value were issued at a price of £0.08 per share as consideration for the acquisition of the business and assets of Seedco Ventures Limited, totalling £1,640,000.

On 15th April 2015, two Non-Executive Directors were appointed to the Company. 1,000,000 ordinary shares were issued to each of the two Directors on a fully paid basis, at an implied price of £0.08 per share. The implied price of these shares was subsequently written down to £0.07 per share following the transfer of Founder shareholdings in November 2015.

On 24 June 2015 the Group acquired a 27.3% interest in TRAC Technology Ltd for a consideration of £400,000. The consideration was satisfied by the issue and transfer of, in aggregate 3,125,000 ordinary shares in the Company.

ABRIDGED NOTES

1        General Information

Coinsilium Group Limited (the “Company”) is a limited liability company domiciled in the British Virgin Islands. The Company was incorporated on 25 September 2014

The principal business of the Company and its subsidiaries (together the “Group”) is investing in blockchain technologies with a particular focus on fintech. Headquartered in London with offices in Hong Kong, the Group makes investments in innovative blockchain / fintech companies, with the intent of supporting the further development and commercialisation of these technologies.

2      Summary of significant accounting policies

The principal accounting policies applied in the preparation of these Financial Statements are set out below.

2.1     Basis of preparation of Financial Statements

The Group Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRS Interpretations Committee (IFRIC) interpretations as adopted by the European Union

The financial statements have been prepared on the historical cost basis, except for the measurement to fair value of assets and financial instruments as described in the accounting policies below.   

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s Accounting Policies.

2.2     New IFRS standards and interpretations

(i)       New and amended standards and interpretations mandatory for the first time for the financial period beginning 25 September 2014 and relevant to the Company.

The financial statements have been drawn up on the basis of accounting standards, interpretations and amendments effective at the beginning of the accounting period. The following new standards, interpretations and amendments to published standards effective in the period have been adopted by the Company:


Standard            Impact on initial application                Effective date

IAS 27              Separate financial statements                1 January 2014

IAS 27 (amendment)  Separate financial statements – Investment   1 January 2014
                    entities

IAS 28              Investments in associates and joint ventures 1 January 2014

IFRS 10             Consolidated financial statements            1 January 2014

IFRS 10 (amendment) Consolidated financial statements –          1 January 2014
                    Investment entities

IFRS 10 (amendment) Consolidated financial statements –          1 January 2014
                    transition guidance

IFRS 11             Joint arrangements                           1 January 2014

IFRS 11 (amendment) Joint arrangements – transition guidance     1 January 2014

IFRS 12             Disclosure of interests in other entities    1 January 2014

IFRS 12 (amendment) Disclosure of interests in other entities –  1 January 2014
                    Investment entities

IFRS 12 (amendment) Disclosure of interests in other entities –  1 January 2014
                    transition guidance



The above pronouncements have been adopted for the first time this period as part of the Company’s first reporting period.

(ii)      New and amended standards and interpretations in issue but not yet effective or not yet endorsed and not early adopted.

The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective.  Unless otherwise stated, the Directors are assessing the possible impact of the following on the Financial Statements. However, the Directors consider that these new and amended standards are not expected to have a material impact on the Company’s results or shareholders’ funds.


Standard                      Impact on initial application     Effective date

IAS 1 (Amendments)            Presentation of Financial         1 January 2016*1
                              Statements: Disclosure initiative

IAS 27 (Amendment)            Equity method in Separate         1 January 2016*1
                              Financial Statements

IAS 28 (Amendments)           Investments in Associates and     1 January 2016*1
                              Joint Ventures

IAS 28 and IFRS 1 and IFRS 12 Investment Entities: Applying the 1 January 2016*1
(Amendments)                  Consolidation Exception

IAS 38 (Amendment)            Clarification of Acceptable       1 January 2016*1
                              Methods of Amortisation

IFRS 9                        Financial Instruments             1 January 2018*1

IFRS 10 (Amendments)          Consolidated Financial Statements 1 January 2016*1

IFRS 15                       Revenue from contracts with       1 January 2018*1
                              customers

IFRS 16                       Leases                            1 January 2019

Annual Improvements           2010 – 2012 Cycle                 1 July 2014*1

Annual Improvements           2011 – 2013 Cycle                 1 July 2014*1

Annual Improvements           2012 – 2014 Cycle                 1 July 2016*1



*1 Not yet endorsed by the EU

2.3     Basis of Consolidation

The Group Financial Statements consolidate the Financial Statements of Coinsilium Group Limited and the Financial Statements of all of its subsidiary undertakings made up to 31 December 2015.

Subsidiaries are all entities over which the Group has control. The Group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the entity.  Where an entity does not have returns, the Group’s power over the investee is assessed as to whether control is held. Subsidiaries are fully consolidated from the date on which control is transferred to the Group.  They are deconsolidated from the date that control ceases.

Inter-company transactions, balances, and income and expenses on transactions between Group companies are eliminated.  Profits and losses resulting from intercompany transactions that are recognised in assets are also eliminated.  Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

2.4     Going Concern

In considering the Company’s ability to continue in operation for the foreseeable future, the Directors have considered the Company’s forecast operating cash-flows for the period up to the end of 31 May 2017, and all other related matters. This involved consideration of the cash flow implication of the budget. The Directors consider that the outlook presents some challenges in terms of the timing of revenues and income.

The Directors have assessed the current financial position of the Company, along with future cash flow requirements to determine if the Company has financial resources to continue as a going concern for the foreseeable future.

The directors have instituted measures to preserve cash, and have reduced the monthly expenditure considerably since December 2015. In addition, the Directors are actively engaged in discussions with several organisations to provide training and consultancy services. The Directors are also pursuing divestment opportunities which would increase shareholder value and provide the required capital for future investments.

The Directors have concluded that the combination of these activities are sufficient such that the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.  For this reason, the Directors continue to adopt the going concern basis in preparing the historic financial information.

2.5     Business Combinations

The acquisition of subsidiaries in a business combination is accounted for using the acquisition method.  The cost of the acquisition is measured at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquired, plus any costs directly attributable to the business combination.  The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 are recognised at their fair value at the acquisition date, except for non-current assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 “Non-Current Assets Held For Sale and Discontinued Operations”, which are recognised and measured at fair value less costs to sell.

Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair value of non-controlling interest over the identifiable net assets acquired and liabilities assumed.  If this consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognised in profit or loss in the Income Statement.

Any interest of non-controlling interests in the acquiree is initially measured at the minority’s proportion of the net fair value of the assets, liabilities and contingent liabilities recognised.  There are no minority/non-controlling shareholders of subsidiaries.

2.6     Foreign Currencies

(i)       Functional and presentation currency

          The functional currency of the Company is UK pound sterling (£) and all values are rounded to the nearest Pound.  This is on the basis that the Group is based in the United Kingdom, its overheads are generally incurred in sterling, and its funds are generally held mainly in sterling bank accounts, and its investors have invested in sterling-based instruments.

(ii)      Transactions and balances

          These accounts are presented in the presentation and functional currency of the Group which the Directors consider to be the UK pound sterling (£).

          Transactions in foreign currencies are translated at the exchange rate ruling at the date of each transaction. Foreign currency monetary assets and liabilities are retranslated using the exchange rates at the reporting date. Gains and losses arising from changes in exchange rates after the date of the transaction are recognised in profit and loss. Non?monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated at the exchange rate at the date of the original transaction.

(iii)     Group companies

          The results and financial position of all the Group’s entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

·      assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position;

·      income and expenses for each statement of comprehensive income presented are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing ion the transaction dates in which case income and expenses are translated at the dates of the transactions); and

·      all resulting exchange differences are recognised in other comprehensive income where material.

          On consolidation, exchange differences arising from the translation of the net investment in foreign entities, and of monetary items receivable from foreign subsidiaries for which settlement is neither planned nor likely to occur in the foreseeable future, are taken to other comprehensive income.  When a foreign operation is sold, such exchange difference are recognised in the income statement as part of the gain or loss on sale.

2.7     Intangible Assets

(i)       Brands and Trademarks

          Brand and trademark intangible assets have been recorded at cost, being their estimated fair value at the time of acquisition. They are amortised over estimated useful lives as follows:


Brands and trademarks 1 year



(ii)      Goodwill

          Goodwill arising on the acquisition of subsidiaries represents the excess of the consideration transferred over the Group’s interest in the fair value of the identifiable assets and liabilities of a subsidiary at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any impairment. Goodwill which is recognised as an asset is reviewed for impairment at least annually. Such a review primarily entails evaluation of future expected profitability and cash flows of the subsidiary. Any impairment is recognised immediately and is not subsequently reversed.

(iii)     Impairment of Intangible Assets

          Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at each financial year-end. Changes in the expected useful life or the expected patter of consumption of future economic benefits embodied in the assets are accounted for by changing the amortisation period or method, as appropriate, and treated as a change in accounting estimate. The amortisation expense on intangible assets with finite lives is recognised in the statement of comprehensive income in the expenses category consistent with the function of the intangible asset.

2.8     Property, Plant and Equipment

Property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.  Depreciation is provided on all property, plant and equipment to write off the cost less estimated residual value of each asset over its expected useful economic life on a straight-line basis at the following annual rates:

Office equipment - 33.33% straight line over the life of the asset

Assets that are subject to depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.  The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. 

2.9   Financial Assets

All financial assets are recognised and derecognised when the Group becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for the transaction costs, except for those carried at fair value through profit and loss which are measured initially at fair value.  Subsequent measurement of financial assets and liabilities are as set out below.

For the purpose of subsequent measurement, financial assets have been classified into the following categories on initial recognition:

·      Available for sale (AFS) financial assets

·      Loans and receivables

All income relating to financial assets that are recognised in profit and loss are presented within other income.

Financial assets are assessed for indicators of impairment at each statement of financial position reporting date. Provision against financial assets is made where there is objective evidence that the value of a financial asset or a group of financial assets is impaired.

The amount of the write down is determined based on the category of the financial asset as set out below.

(i)       Available for Sale Investments

Available for sale assets are non-derivative financial assets that are either designated to this category or do not qualify for inclusion in any of the other categories of financial assets.

Available for sale investments are initially measured at fair value plus incidental acquisition costs.  Subsequently, they are measured at fair value in accordance with IAS 39.  Gains and losses on measurement are recognised in other comprehensive income except for impairment losses and foreign exchange gains and losses on monetary items denominated in a foreign currency, which are recognised directly in profit or loss.  Where the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously recognised in other comprehensive income is reclassified to profit or loss. The loss is measured as the difference between the cost of the financial asset and its current fair value less any previous impairment.

Unquoted investments are valued by the Directors using primary valuation techniques such as recent transactions, last price or net asset value.

Where the fair value of an equity investment cannot be estimated reliably, such as investments in unquoted companies, fair value is based on cost less any impairment charges.  In this case impairment charges are made to the profit and loss. The Group assesses at each period end date whether there is any objective evidence that a financial asset or group of financial assets classified as available-for-sale has been impaired.

An impairment loss is recognised if there is objective evidence that an event or events since initial recognition of the asset have adversely affected the amount or timing of future cash flows from the asset. A significant or prolonged decline in the fair value of a security below its cost shall be considered in determining whether the asset is impaired.

(ii)      Loans and Receivables

Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.  After initial recognition, these are measured at amortised cost using the effective interest method, less provision for impairment. Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most other receivables fall into this category of financial instruments. In relation to the Company, loans to and from subsidiaries are also recognised fall within this category of financial instruments.

Individually significant receivables are considered for impairment when they are past due or when other objective evidence is received that a specific counterparty will default.

Other financial assets are also classified within the loans and receivables category.

(iii)     Impairment of Financial Assets

The Company assesses at the end of each reporting period whether there is objective evidence that a financial asset is impaired.  For equity investments classified as available-for-sale, a significant or prolonged decline in the fair value of the security below its cost is evidence that the assets are impaired.  If any such evidence exists for available-for-sale financial assets, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss – is removed from equity and recognised in profit or loss.  Impairment losses recognised in the profit or loss on equity instruments are not reversed through profit or loss.

Impairment testing of available-for sale financial assets is described in Note 4.

2.10   Cash and Cash Equivalents

Cash and cash equivalents comprise cash in hand and current and deposit balances at banks with maturities of three months or less from inception, together with other short-term, highly liquid investments that are readily convertible into know amounts of cash, and which are subject to an insignificant risk of changes in value.

Cash equivalents included cash held on behalf of the Group by its solicitors.

2.11   Current and Deferred Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the period.  Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.  The Group’s liability for current tax is calculated using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is the tax expected to be payable or recoverable on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method.

Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be recognised.  Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates and laws that are expected to apply in the period when the liability is settled or the asset is recognised based on tax laws and rates that have been enacted at the balance sheet date. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited in other comprehensive income, in which case the deferred tax is also dealt with in other comprehensive income.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

2.12   Financial liabilities

Financial liabilities are recognised in the Group’s balance sheet when the Group becomes a party to the contractual provisions of the instrument and are initially measured at fair value.  They are derecognised when it is extinguished, discharged, cancelled or expired.

The Group’s financial liabilities comprise trade and other payables.

Trade and other payables are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest rate method less settlement payments.

2.13   Equity

An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.  Equity instruments issued by the Company are recorded at the proceeds received net of direct issue costs.

The share premium account represents premiums received on the initial issuing of the share capital.  Any transaction costs associated with the issuing of shares are deducted from share premium, net of any related income tax benefits.

The share capital account represents the amount subscribed for shares at nominal value.  Since the Company’s shares have a £Nil par value, no amounts are credited to share capital and all amounts received on the initial issuing of shares are credited to the share premium.

Other reserves represent the accumulated fair value adjustments on available-for-sale financial assets that are not permanently impaired.

Retained earnings include all results as disclosed in the statement of comprehensive income.

2.14   Share Based Payments

The Group makes payments to third parties through share-based schemes, under which the entity receives services from third party suppliers as consideration for equity instruments (shares, options and warrants) of the Group.  The Group may also issue warrants to share subscribers as part of a share placing.  The fair value of the equity-settled share based payments is recognised as an expense in the income statement or charged to equity depending on the nature of the service provided or instrument issued. 

The total amount to be expensed or charged in the case of options is determined by reference to the fair value of options granted:

·      Including any market performance conditions;

·      Excluding the impact of any service and non-market performance vesting conditions (for example, profitability or sales growth targets, or remaining an employee of the entity over a specified time period); and

·      Including the impact of any non-vesting conditions (for example, the requirement for employees to save).

In the case of shares and warrants, the amount charged to the share premium account is determined by reference to the fair value of the services received if available. 

2.15 Revenue

Revenue comprises the fair value of the consideration received or receivable for the consultancy, advisory and educational services provided, excluding VAT and relevant sales taxes.

Revenue is recognised for services when the group has satisfied its performance obligation in respect of the services.  The amount recognised for the services performed is the consideration that the group is entitled to for performing the services provided.

2.16 Operating leases

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the group as lessee are classified as operating leases.

Where the Group is a lessee, payments in respect of operating leases agreements are recognised as an expense on a straight line basis over the period of the lease, net of any incentives received from the lessor.  Associated costs, such as maintenance and insurance are expensed as incurred.

3.     Earnings per Share

The calculation of the total basic earnings per share of (0.04) pence is based on the loss attributable to equity owners of the parent company of £2,127,841 and on the weighted average number of ordinary shares of 50,610,107 in issue during the period.

In accordance with IAS 33, basic and diluted earnings per share are identical as the effect of the exercise of share options or warrants would be to decrease the loss per share.

4.     Financial Information

The financial information for the year ended 31 December 2015 has been extracted from the audited financial statements to that date, which were prepared in accordance with International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations as adopted by the European Union.

Notes to Editor

Coinsilium is a London-based blockchain technology focused investment and development company, supporting early-stage blockchain companies through investment, acceleration, development and education. 

Coinsilium is the world's first blockchain technology focused company to be admitted to trading on an Exchange Regulated Market and has a portfolio of interests in blockchain companies and projects.  In addition to pursuing its investment strategy Coinsilium is able to offer a suite of services including corporate/business advisory, CPD accredited training & education, investment solutions, in-house development and other professional services to blockchain/fintech companies and major corporates wanting to learn more about blockchain technology and its implications to the way the world transfers value over the internet.

For further information please visit http://www.coinsilium.com/

Or please contact the following:


Eddy Travia / Laurent Kssis Coinsilium Group Limited   +44 (0) 207 099 0740

David Coffman / Asha Chotai Daniel Stewart & Company   +44 (0) 207 776 6550
                            (Corporate Adviser & Joint
                            Broker)

Nick Emerson / Andy Thacker SI Capital Limited         +44 (0) 1483 413 500
                            (Joint Broker)