TechFinancials Inc. - Interim Report to 30 June 2021
RNS Number : 2223N
TechFinancials Inc.
28 September 2021
 

28 September 2021

 

TechFinancials, Inc.

("TechFinancials" or the "Company" or the "Group")

Unaudited Interim Report for the Six Months Ended 30 June 2021

TechFinancials Inc. (AQSE: TECH), today announces its unaudited interim results for the six month period ended 30 June 2021 ("H1 2021").

 

Financial Overview

·         

Group Revenues of US$nil (H1 2020: US$0.61m)

·         

Loss for the period attributable to shareholders of US$0.1m (H1 2020: loss of US$0.55m)

·         

Cash position at the period end of US$1.33m (31 December 2020: US$1.42m)

·         

Basic earnings per share ("EPS") of (US$0.001) (H1 2020 (US$0.006))

·         

Footies Ltd. was struck off on 08 June 2021

 

Asaf Lahav, Group Chief Executive Board Member of TechFinancials, commented:

"In the first half of the year the Company continued to focus on administrative cost reductions, completed the strike off of Footies Ltd. and started the process to strike off its subsidiaries; TechFinancials (Israel) 2014 Ltd., Softbox Technologies Ltd. and Cedex Trading UK."

 


"The Company plans to continue its attempts to sell all or part of its interest in Cedex to a third party."

 

The directors of the Company accept responsibility for the contents of this announcement.

For further information:

TechFinancials, Inc.

Tel: +972 54 5233 943

Asaf Lahav, Executive Board Member

 

 

Peterhouse Capital Limited (AQSE Growth Market Advisor and  Broker)

Tel: +44 (0) 20 7469 0930

Guy Miller and Mark Anwyl 

 

 

 

Chairman's Statement

In H1 2021, the Company completed the strike off of Footies Ltd. and continued to oversee its investments and look for short term investment opportunities.

 

Outlook

 

We will continue to look for opportunities to materialise our assets and to increase value for our shareholders. We will also continue to strike off subsidiaries in order to clean the group structure. 

 

I would like to thank our shareholders for their continued support in what has been a difficult period globally as well as to the Group.  

 

We look forward to updating the market on our progress in due course.

 

Eitan Yanuv

Independent Non-Executive Chairman

28 September 2021

 

Executive's Board Member Statement

Financial Results

In 2020, The Group closed all its operating historical businesses and for the first time since the Company became public it didn't record any turnover in the six months ended 30 June 2021.

                                                                           

The operating loss for the period was US$0.13m (H1 2020: loss of US$ 0.54m); the operating expenses for the period were attributed mainly to general and administrative costs associated with being a listed Company.

 

Financial income for the period was US$0.04m, attributed predominantly to a US$0.06m gain from  realisation of a short term investment in tradable securities and other financial expenses of US$0.02m.

 

Taxes for the period were US$0.01m (H1 2020: US$ 0.01m).

 

The loss after taxation for the period attributable to shareholders of the Company was US$0.10m (H1 2020: loss of US$0.55m).

 

 

The Group's cash position for the period ended 30 June 2021 was US$1.33m (31 December 2020: US$1.42m).

 

The unaudited interim financial results have not been reviewed by the Company's auditor.

 

 

Asaf Lahav

Executive Board Member

28  September 2021

 

 

 

 

Statement of Comprehensive Income

For the six month period ended 30 June 2021

 

Note

 

Unaudited
6 Month Period

Ended
30 June 2021

US$'000

 

Unaudited
6 Month Period Ended
30 June 2020

US$'000

 

Audited
12 Month Period Ended
31 December 2020

US$'000

 

Revenue

 

 

-

 

614

 

1,309

 

Cost of sales

 

 

-

 

(79)

 

 (87)  

 

Gross profit

 

 

-

 

535

 

1,222

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

-

 

(464)

 

(512)

 

Selling and marketing

 

 

-

 

(41)

 

(53)

 

Administrative

 

 

(133)

 

(565)

 

(654)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

 

(133)

 

(535)

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank fees

 

 

(18)

 

(32)

 

(50)

 

Foreign exchange gain (loss)

 

 

(5)

 

(5)

 

70

 

Gain from realization of tradable securities

 

 

63

 

(2)

 

(1)

 

Financing Income (expenses)

 

 

41

 

(39)

 

19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income  (expenses)

 

 

 

 

 

 

 

 

Other income (expenses), net

 

 

-

 

82

 

875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit (Loss) before taxation

 

 

(92)

 

(492)

 

897

 

Taxation

 

 

(8)

 

(13)

 

70

 

Profit (Loss) from continuing operations

 

 

 

(100)

 

(505)

 

967

 

 

 

 

 

 

 

 

 

 

Gain (Loss) from discontinued operations

 

 

-

 

-

 

50

 

Gain / (Loss) from discontinued operations, net

 

 

-

 

-

 

50

 

Other comprehensive income

 

 

-

 

-

 

-

 

Total comprehensive Profit (Loss)

 

 

 

(100)

 

(505)

 

1,017

 

 

 

 

 

 

 

 

 

 

Profit  (Loss) attributable to:

 

 

 

 

 

 

 

 

Owners of the Company

 

 

 (100)

 

 (545)

 

997

 

Non-controlling interests

 

 

-

 

40

 

20

 

Profit (Loss) for the period

 

 

 

(100)

 

(505)

 

1,017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to owners of the parent during the year (Note 3):

 

 

 

Unaudited
6 Month Period

Ended
30 June 2021

(Cents USD)

 

Unaudited
6 Month Period Ended
30 June 2020

(Cents USD)

 

Audited
12 Month Period Ended
31 December 2020

(Cents USD)

 

Basic

 

 

(0.12)

 

(0.64)

 

1.16

 

Diluted

 

 

(0.12)

 

(0.64)

 

1.16

 

From continuing operations - Basic

 

 

-

 

(0.64)

 

1.10

 

From continuing operations - Diluted

 

 

-

 

(0.64)

 

1.10

 

From discontinued operations - Basic

 

 

-

 

-

 

0.06

 

From discontinued operations - Diluted

 

 

-

 

-

 

0.06

 

 

 

Consolidated Statement of financial position

As of 30 June 2021

 

 

 

 

Note

 

Unaudited
30 June

2021

US$'000

 

Unaudited
30 June 2020

US$'000

 

Audited
31 December 2020
US$'000

 

Non-current assets

 

 

 

 

 

 

 

 

Intangible assets, net

 

 

-

 

707

 

-

 

Property and equipment

 

 

-

 

3

 

-

 

Short term investment

 

 

-

 

-

 

-

 

Financial asset held at FVTPL

 

 

152

 

-

 

152

 

 

 

 

152

 

710

 

152

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Trade receivables, net and other receivables

4

 

10

 

87

 

13

 

 

Short term investment

 

6

 

 

53

 

 

-

 

 

-

 

Restricted bank deposits

 

 

-

 

63

 

-

 

Cash

 

 

1,329

 

716

 

1,419

 

 

 

 

1,392

 

866

 

1,432

 

 

 

 

 

 

 

 

 

 

Total Assets

 

 

1,544

 

1,576

 

1,584

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Current liabilities

 

 

 

 

 

 

 

 

Shareholders loan

 

 

84

 

92

 

84

 

Current Liabilities

 

 

 

 

 

 

 

 

Trade and other payables

5

 

145

 

334

 

88

 

Deferred income liability

 

 

-

 

631

 

-

 

Income tax payable

 

 

90

 

9

 

86

 

 

 

 

235

 

974

 

174

 

 

 

 

 

 

 

 

 

Total Liabilities

 

 

319

 

1,066

 

258

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited
30 June

2021

US$'000

 

Unaudited
30 June 2020

US$'000

 

Audited
31 December 2020
US$'000

 

Equity

 

 

 

 

 

 

 

 

Share Capital

 

 

61

 

61

 

61

 

Share premium account

 

 

12,022

 

12,022

 

12,022

 

Share-based payment reserve

 

 

799

 

798

 

798

 

Accumulated profits / (losses)

 

 

(11,656)

 

(12,392)

 

(11,555)

 

Equity attributable to owners of the Company

 

1,225

 

489

 

1,326

 

 

 

 

 

 

 

 

 

 

Non-controlling interests

 

 

-

 

21

 

-

 

Total equity

 

 

1,225

 

510

 

1,326

 

 

 

 

 

 

 

 

 

 

Total Equity and Liabilities

 

 

1,544

 

1,576

 

1,584

 

 

 

 

Consolidated Statement of changes in equity

For the six month period ended 30 June 2021

 

Share capital

US$'000

 

Share  premium

US$'000

Share-based payment reserve

US$'000

 

 

Revaluation  reserve

US$'000

 

Accumulated profits/ (losses)

US$'000

 

Total

US$'000

 

Non- controlling interests

US$'000

 

Total

US$'000

 

Balance at 31 December 2019

61

 

12,022

934

-

 

(12,459)

 

 

558

 

(249)

 

309

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) for the period

-

 

-

-

 

-

 

997

 

 

997

 

20

 

1,017

 

Gain on revaluation of cryptocurrency digital assets in the year

-

 

-

-

 

 

577

 

-

 

577

 

-

 

577

 

Disposal of cryptocurrency digital assets in the year

-

 

-

-

 

 

(577)

 

-

 

(577)

 

-

 

(577)

 

Purchase of NCI in Footies during the year

-

 

-

-

 

-

 

(229)

 

(229)

 

229

 

-

 

Share-based payment

-

 

-

6

-

 

(6)

 

-

 

-

 

-

 

Transfer of Shared based payment reserve on lapsed options

-

 

-

(142)

 

 

 

-

 

142

 

 

 

 

 

-

 

 

 

 

-

 

-

 

Balance at 31 December 2020

61

 

12,022

798

 

-

 

(11,555)

 

 

1,326

 

-

 

1,326

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive loss for the period

-

 

-

-

 

-

 

(100)

 

(100)

 

 

-

 

(100)

 

Share-based payment

-

 

-

1

-

 

-

 

(1)

 

-

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 30 June 2021

61

 

12,022

799

 

-

 

(11,656)

 

1,225

 

-

 

1,225

 

 

 

 

 

Consolidated statement of cash flows

For the six month period ended 30 June 2021

 

Note

Unaudited 6 months ended 30 June 2021

 

Audited Year ended 31 December 2020

 

 

US$'000

 

US$'000

Cash Flow from operating Activities

 

 

 

 

Profit (Loss) before tax for the period

 

(92)

 

946

Adjustment for:

 

 

 

 

Depreciation of property and equipment

 

-

 

4

Amortization of intangible assets

-

-

 

75

Impairment of intangible assets

 

-

 

37

Share Option Charge

 

1

 

6

Gain on bargain purchases

 

-

 

(309)

Forgiveness of loan due to NCI

 

-

 

(51)

Gain from short term investment

 

(63)

 

-

Capital loss on disposal of property and equipment

 

-

 

12

Capital gain from realization and revaluation of intangibles assets

 

-

 

(577)

Income tax expenses

 

 

 

92

Capital loss on write off investments in subsidiaries 

 

-

 

-

 

 

 

 

 

Operating cash flows before movements in working capital:

 

 

Decrease (increase) in trade and other receivables

4

(3)

 

589

Increase (Decrease) in trade and other payables

5

23

 

(1,453)

Increase in other current liabilities

5

34

 

-

Income tax received

 

-

 

-

R&D tax credit received

 

-

 

163

Income tax paid

 

-

 

(109)

Net cash (used in) / generated from operating activities

 

(100)

 

(575)

 

 

 

 

Cash Flow from investing Activities:

 

 

 

 

Consideration from sale of intangible assets

 

-

 

974

Net cash acquired on acquisition

 

-

 

649

Decrease/(Increase) of restricted bank deposits

 

-

 

71

Funds advanced under SAFE agreement

 

-

 

(152)

Loans eliminated from obtaining control of a subsidiary  

 

-

 

(296)

Investment eliminated on consolidation from obtaining control of a subsidiary

 

-

-

 

-

Purchase of tradable securities

 

(82)

 

 

Sale of tradable securities

 

92

 

-

Net cash generated from/ (used in) investing activities

 

10

 

1,246

 

 

 

 

 

Cash Flow from financing Activities:

 

 

 

 

Interest payments

 

-

 

-

Net cash generated from/ (used in) financing activities

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

(90)

 

671

Cash and equivalents at beginning of period

 

1,419

 

672

Effect of changes in exchange rates on Cash

 

-

 

76

Cash and equivalents at end of period

 

1,329

 

1,419

                                                 

Notes to the financial statements

1.    General Information

TechFinancials, Inc, (the "Company") and its subsidiaries (together, the "Group") were engaged until the end of 2020 in the development of blockchain-based digital assets solutions and licensing of financials trading platforms to businesses. The financial statements present the consolidated results of the Group for each of the periods ending 30 June 2021, 30 June 2020 and 31 December 2020.

 

Group changes in the period

In June 2021, Footies Ltd the Company's fully owned subsidiary has been struck off.

 

Basis of preparation

As permitted, the Group has chosen not to adopt International Accounting Standard 34 'Interim Financial Reporting' in preparing these interim financial statements. The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2020, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

 

The interim financial information set out above does not constitute statutory accounts. The information has been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the European Union.

The accounting policies applied in preparing the interim financial information are consistent with those that have been adopted in the Group's 2020 audited financial statements. Statutory financial statements for the year ended 31 December 2020 were approved by the Board of Directors on 30 July 2021. The report of the auditors on those financial statements were not modified in respect of the matter mentioned, however, has drawn attention to material uncertainty related to going concern.

The Directors approved these condensed interim financial statements on 28 September 2021.

 

Risks and uncertainties

 

The key risks that could affect the Group's short and medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Group's 2020 Annual Report and Financial Statements, a copy of which is available on the Company's website: www.techfinancials.com.

 

2.    Accounting policies

The condensed consolidated interim financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain financials assets and liabilities at fair value through the statement of profit and loss.

The business is not subject to seasonal variations.

The financial information for the 6 months ended 30 June 2021 and the 6 months ended 30 June 2020 has not been audited.

 

No dividends have been paid in the period (2020: $nil).

 

 

Critical accounting estimates and judgements

The preparation of condensed consolidated interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the end of the reporting period. Significant items subject to such estimates and have not changed during the interim period and are set out in note 3(v) of the Group's 2020 Annual Report and Financial Statements.

3.    Earnings per share

The calculation of earnings per share is based on the following losses and number of shares:

Earnings per share

Unaudited
6‑month period ended
30 June 2021

 

Unaudited
6‑month period ended
30 June 2020

 

Audited
Year ended 31 December 2020

 

US$'000

 

US$'000

 

US$'000

Basic

 

 

 

 

 

Loss attributable to equity holders

(100)

 

(545)

 

948

Weighted average number of shares basic

85,680,979

 

85,680,979

 

85,860,979

 

US$

 

US$

 

US$

Earning (Loss) per share - basic

(0.0012)

 

(0.0064)

 

0.016

Earnings per share from continuing operations - basic

(0.0012)

 

(0.0064)

 

0.011

Earnings per share from discontinued operations - basic

-

 

-

 

0.0006

 

 

 

 

 

 

  Earnings per share

 

Unaudited
6‑month period ended
30 June 2021

 

Unaudited
6‑month period ended
30 June 2020

 

Audited
Year ended 31 December 2020

 

US$

 

US$

 

US$

Diluted

 

 

 

 

 

Weighted average number of shares diluted

85,680,979

 

85,680,979

 

86,399,888

 

 

 

 

 

 

Earnings/(loss) per share - diluted

-

 

(0.0064)

 

0.016

Earnings per share from continuing operations - diluted

-

 

(0.0064)

 

0.011

Earnings per share from discontinued operations - diluted

-

 

-

 

0.0006

 

 

 

 

 

 

 

 

4.    Trade and other receivables

 

 

Unaudited
6‑month period ended
30 June 2021

 

Unaudited
6‑month period ended
30 June 2020

 

Audited
Year ended 31 December 2020

 

US$'000

 

US$'000

 

US$'000

 

 

 

 

 

 

Trade Receivables, net

 

-

 

16

 

-

Other Receivables

 

-

 

25

 

8

Prepayments

 

10

 

44

 

5

Short term deposit

-

 

2

 

-

 

 

 

 

 

10

 

87

 

13

 

 

 

 

 

 

 

 

The carrying amounts of trade and other receivables approximate their fair values.

5.    Trade and other payables

 

 

Unaudited
6‑month period ended
30 June 2021

 

Unaudited
6‑month period ended
30 June 2020

 

Audited
Year ended 31 December 2020

 

US$'000

 

US$'000

 

US$'000

 

 

 

 

 

 

Trade Payable

 

27

 

76

 

4

Other Payable

 

-

 

-

 

-

Employees' salaries related balance

-

 

93

 

-

Accrued liabilities

118

 

165

 

84

 

 

 

 

 

145

 

334

 

88

 

 

 

 

 

 

 

 

6.    Subsequent events

In July 2021, the Company sold all its holdings recorded as of 30 June 2021, for a total consideration of 51k GBP.
On 18 August 2021, the Company participated in the placing of HEMOGENYX PHARMACEUTICALS, a listed company in LSE, for a total consideration of 14.6k GBP.

 

In July 2021, Cedex Trading UK a fully owned subsidiary of Cedex Trading Ltd,  the Company's fully owned subsidiary was struck off.

 

 

 

 

 

                          

 

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