("KR1" or the "Company")
Audited Final Results
Managing Director’s Report
For the year ended
We are pleased to present the audited final results of the Company for the twelve months ended
Financial markets tend to explore the boundaries of an asset’s value, spiking upwards to test highs, and capitulating downwards at moments of deep uncertainty. These last few years in the crypto markets have seen both ends of the spectrum in full force. The one constant has been the ever expanding number of credible and exciting startup projects launching new disruptive systems using blockchain and decentralised technologies. KR1 has been continuously investing in these new projects through this market volatility cycle. We continued to add new investments to the portfolio, knowing full well that, with the increased number of decentralised platforms finding real product market fit, the markets would soon return to a more favourable outlook. Currently we are seeing many of our earliest investments in the decentralised finance (
The last year saw a major step change for KR1 as we became income generating and we are pleased to report £241,633 in income from the Company’s staking activities, mainly resulting from our participation in the Cosmos Network during the 2019 financial year. Going into 2020 and beyond, staking activities are becoming an evermore important area, as further promising portfolio projects such as Polkadot, Dfinity and Ethereum turn on their Proof-of-Stake blockchains. On top of our staking success, we undertook active advisory work with one of our portfolio companies, Vega Protocol, resulting in revenues of £180,748 in their native token. All of these activities combined with our successful track record of investing, have made 2019 another successful year for KR1, resulting in an unrealised profit of £2,053,608 reflecting the gain in fair value on our digital assets investments with a realised profit on disposal of digital assets of £693,665 for the Company.
Since
In
KR1 specialises in seed and early stage investments into projects that use decentralised technologies to create innovative products and services to disrupt current systems. More recently, it is
The big bang of decentralised money and applications continues to expand at an ever increasing speed and at every corner of the blockchain ecosystem we are seeing increased adoption; from the amount of transactions on-chain through to hash rates, active wallet addresses, billions of value locked up in
One of these innovative blockchain projects is the Cosmos Network, which has become a major position in KR1’s portfolio since Cosmos’ launch in
Similar to the above, two other highly anticipated yet-to-launch ‘Proof-of-Stake’ blockchain networks in the Company’s portfolio are Polkadot and Dfinity, which are the largest investments that KR1 has made to date. Polkadot is in the middle of its launch process as we write and Dfinity recently unveiled the first parts of its project, which they executed in stealth, gearing up for a launch process starting as early as later this year.
Since the Initial Coin Offering (ICO) fervour diminished in early 2018, KR1 has been at the forefront of participating in newer token distribution methods and models. The need for crypto networks and protocols to distribute tokens to active participants who add value in order to be fully decentralised in nature has not disappeared, rather it became more important than ever. One of the most compelling new token distribution mechanisms, called a ‘Lockdrop’, was pioneered by the
For much of 2020, Bitcoin has been sitting ‘still’ under the
While maximising staking yields and the utilization of our portfolio assets has become an important area for us, our focus has always been and continues to be researching the bleeding edge of this transformative ecosystem, backing the brightest and best teams to help build out the new decentralised world of Web 3.0 and beyond.
Managing Directors
Date:
Statement of Comprehensive Income
For the year ended
Restated 2019 2018 (Note 13) Note £ £ Income Realised gain on disposal of digital investments 693,665 2,354,118 Staking yields 241,633 - Advisory fees 180,748 - Unrealised (loss)/gain on investments (1,080,599) 636,693 Unrealised gain/(loss) on digital investments 2,053,608 (12,714,187) Unrealised (loss)/gain on loan issued (8,088) 1,665 2,080,967 (9,721,711) Expenses Administration expenses (117,364) (102,794) Advisory fees (37,397) (136,947) Audit fees (14,706) (19,800) Bank charges and trading commissions (11,122) (57,188) Branding and promotional expenses (81,300) (107,675) Commission - (15,850) Escrow fees (2,500) - Foreign exchange loss (2,233) (6,842) Insurance (6,798) (1,129) Legal and professional (36,313) (89,703) Loss on share buy back (6,000) - Office rental (13,671) (39,317) Provision against receivable (32,466) - Staff costs 3 (268,584) (455,997) Other expenses (8,711) - Travel expenses (84,136) (102,959) (723,301) (1,136,201) Taxation 5 (23,778) 2,519,393 Profit/(loss) for the year 1,333,888 (8,338,519) Other comprehensive income - - Total comprehensive income/(loss) for the year 1,333,888 (8,338,519) Earnings per share expressed in pence per share: Basic and diluted 6 1.02 (6.95)
The notes contained in the Company’s Annual Report form part of these financial statements.
Statement of Financial Position
For the year ended
Restated 2019 2018 (Note 13) Note £ £ Assets Fixed asset investments 8 7,403,708 5,100,393 Cash at bank 179,243 87,387 Cash held on trading platforms 100,130 618,150 Debtors 7 28,607 819,247 7,711,688 6,625,177 Creditors Amounts falling due within one year 11 (237,865) (508,172) Net current assets 7,473,823 6,117,005 Capital and reserves Called up share capital 12 720,076 718,843 Share premium 3,056,443 3,034,746 Profit and loss account 3,697,304 2,363,416 Shareholders’ funds 7,473,823 6,117,005
The notes contained in the Company’s Annual Report form part of these financial statements.
The financial statements were approved by the Board of Directors on
George McDonaugh
Director Director
The financial information set out in this announcement does not constitute statutory accounts. This financial information has been extracted from the audited full accounts of the Company for the year ended
The full Annual Report of the Company will be available on the Company’s website: https://www.kryptonite1.co/.
The Directors of the Company accept responsibility for the contents of this announcement,
For further information please contact:
KR1 PLC George McDonaugh +44 (0)16 2467 6716Simon Nicol simon@KR1.ioPeterhouse Capital Limited (AQSE Corporate Adviser)Mark Anwyl +44 (0)20 7469 0930Allie Feuerlein Nominis Advisory Ltd (PR Adviser)Angus Campbell pr@KR1.io
ENDS
Notes to Media
About
KR1 is a leading digital asset investment company supporting early-stage decentralised and open source blockchain projects. Founded in 2016 and publicly listed in
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a
