Coinsilium Group Limited (COIN)
COINSILIUM GROUP LIMITED
("Coinsilium" or the "Company")
UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2021
Coinsilium Group Limited, the Blockchain, DeFi and Crypto Finance venture operator, is pleased to announce its unaudited consolidated interim financial statements for the six months ended 30 June 2021.
The consolidated interim financial statements for the 6 months ended 30 June 2021 have not been reviewed or audited.
Outlook and Post Period End Highlights:
Commenting on the results, Malcolm Palle, Chairman of Coinsilium, said: "We are very pleased to be reporting our Interim results for what was an incredibly busy six months for Coinsilium. This has continued at pace post-period end, with particular regard to our involvement with NFTs where our operations and activities have placed us at the vanguard of the space.
"This is another period where we can reflect on a healthy cash position, giving us the ability to continue to develop and position ourselves at the forefront of what is a rapidly evolving industry. Interest in cryptocurrencies remains high in spite of some instances of intense volatility that we have experienced year to date; only recently did the
"This provides us with great confidence in our business strategy, which we will continue to execute as we go through the rest of the financial year and beyond. Our improving profitability and robust cash levels are most pleasing to see, as we remain focused on delivering meaningful long term sustainable returns for shareholders. We would also like to take this opportunity to thank our shareholders for their ongoing confidence and support for the Company."
The Directors of the Company accept responsibility for the contents of this announcement.
For further information, please contact:
I am pleased to report that Coinsilium has made further progress in the first six months of the current financial year, from both a financial and operational perspective. We finished the period in a strong financial position and have made tangible gains in strengthening Coinsilium's position within the NFT and Open Finance marketplaces, in line with our strategy.
In March 2021 the Company announced that it had received notice from IOV Labs Limited ("IOV") of the early exercise of warrants over 5,500,000 new ordinary shares in the Company at a price of 4.5p for a total consideration of
To further support our growth and delivery of our strategy, we successfully raised a further
NFT progress - creating NFTs and building a marketplace secured on the RSK blockchain
During the period, Coinsilium took its first meaningful step into the NFT ecosystem in partnership with the Gibraltar Philatelic Bureau Ltd and RedFOX Labs, with the launch of a limited-edition collection of NFTs (the Gibraltar Genesis Collection) tied to the release of a commemorative limited edition Cryptocurrency Postage Stamp issued by HM Government of
In March 2021, we reported that the Company's wholly-owned
We also announced in March 2021 that Nifty Labs and Indorse continue to advance discussions towards a formal agreement while the Company agreed to provide Nifty Labs with an initial working capital and development facility of up to
In April 2021, Indorse released the public alpha of 'Nifty Scanner', a digital asset analysis software solution for NFTs. Nifty Scanner is a browser extension and is now available on Google Chrome, Mozilla Firefox, Opera and Brave, which 'scans' NFTs and provides detailed essential background information on how and where the assets (the media and the metadata) associated with an NFT are stored. Currently, Nifty Scanner is compatible with the OpenSea marketplace and we expect it to be compatible with other popular marketplaces in due course.
Post period end, from 7 July to 30 August 2021 Coinsilium co-organised the 'NFT Vision Hack', a global online hackathon focused on NFT technology. The 'NFT Vision Hack' was organised via the Company's wholly owned
Post period end, in August 2021 Coinsilium reported the launch of BlockBots, a 3D Voxel NFT project currently being developed by portfolio company Indorse Pte. Ltd. This new NFT project consists of a deflationary collection of 9,998 unique 3D Voxel avatars. Each BlockBot combines specific traits randomly attributed at the time of minting and can be used as an avatar across metaverses, games and other 3D Voxel NFT-compatible environments. IND tokens will be an integral part of this new NFT project. IND token holders and IND stakers will enjoy multiple benefits throughout various functionalities of BlockBots, including at the NFT sale stage and in the applications to be developed at a later stage. Indorse also expects that BlockBots will become a major source of utility for the IND token. At the same time, Coinsilium Group was also pleased to announce the appointment of Omri Bouton as a strategic NFT advisor to Coinsilium.
Open Finance progress - momentum accelerating post period end
Post period end, in August 2021, Coinsilium announced a proposed strategic investment in Greengage Global Holding Ltd ("Greengage"), a
Coinsilium and Greengage also intend to work closely together to explore opportunities to develop regulatory compliant Decentralised Finance (De-Fi) commercial products and solutions. Given that the vast majority of today's De-Fi solutions operate in a regulatory 'grey-zone', significant challenges still remain as barriers to mainstream adoption. Our focus will therefore be on pursuing opportunities and to research DeFi projects and solutions with the scope to be developed to function within a regulatory perimeter. Greengage's track record and ambitions within regulated markets, combined with Coinsilium's commercial skills and industry knowledge, positions us well for this endeavour and we are most excited by the opportunity.
In March 2021 Federica Velardo joined the Board as a Non-Executive Director. Federica is a qualified solicitor in
During the period Tony Sarin stepped down from the board after a six-year tenure. The Board wishes to thank him for his significant contribution to the Company and his guidance and support to the Board provided over his six-year tenure. We wish him every success in all his on-going and future endeavours.
Post period end, in September 2021, Wayne Almeida joined the Board as a Non-Executive Director. Wayne has over 16-years of experience working in the financial services sector in
Post period end, in September 2021 Craig Brown stepped down as a non-executive Director of the Company in order to concentrate on his other business interests. The Board wishes to thank him for his significant contribution to the Company and his guidance and support to the Board provided over the past four-years of his tenure, and to wish him every success in all his on-going and future endeavours.
Coinsilium is maturing rapidly as a business as we focus on our ongoing evolution into an operating technology company. Pleasingly, this progress was reflected in July 2021 when Coinsilium was admitted to the Apex Segment of the AQSE Growth Market, a segment intended for larger, more established businesses on the AQSE Growth Market.
Over the course of 2021 we have engaged and entered into some very exciting partnerships, and we are most excited about the opportunities that are currently under development as well as those that we have in the pipeline. We are operating in one of the most dynamic technology sectors globally with a sound strategy and a solid financial base, giving us the ability to ensure that we are very well positioned to achieve success in what is a maturing and evolving sector. We look forward to keeping the market updated with our progress as we look to the future with an unprecedented level of confidence.
In the period under review revenue for the six months ended 30 June 2021 was
The Company generated a profit for the six months ended 30 June 2021 from continuing operations of
The earnings per share was a profit of
The financial assets at fair value through profit or loss increased to
The total other current assets, which is a combination of cryptocurrencies and tokens, amounted to
Cash and cash equivalents amounted to
Significant Developments for Coinsilium's Investment Portfolio Companies:
In early 2020, Blox unveiled a new branch of its operations, Blox Staking, which is focused on providing decentralised, non-custodial Ethereum 2.0 staking services. Blox Staking is an open-source staking platform for Ethereum offering an easy way to run a validator and earn rewards while retaining complete custody over both private keys. As Ethereum's plans to move from a Proof of Work consensus mechanism to a Proof of Stake mechanism, with an announced minimum of 32 ETH (or about
In February 2021, Blox received an Ethereum Foundation grant for a new service called SSV or Secret Service Validator. SSV.network is an infrastructure service for decentralised ETH staking enabling trustless staking across multiple providers, machines, validator clients and cloud services. SSV was defined by Vitalik Buterin - co-founder of Ethereum - as one of the components in the Eth2 roadmap. SSV reached the testnet stage open to global operators in April 2021.
The Blox Staking service is now operational and Coindash CEO, Alon Muroch, announced on 28 April 2021 that the equivalent of
As of 30 June 2021, Blox Staking clients had staked about 50,000 ETH through Blox Staking's non-custodial, decentralised staking service, or the equivalent of more than
Investment value equivalent in GBP as at 30 June 2021:
(Investment value in GBP as at 31 December 2020:
During the period under review the Elevate team has been working to create an updated Elevate reward token model in preparation for an intended IDO (Initial Dex Offer) before the end of the year.
The Elevate team has informed the Company that the token model is complete and work on an updated Whitepaper is now in process. In parallel, a review of suitable Decentralised Exchanges (DEXs) for the IDO is also underway. Upon receipt of confirmation that the IDO will proceed, it is intended that a proportion of new Elevate platform tokens will be allocated to all founder investors. At this point it is also expected that the
Investment value equivalent in GBP as at 30 June 2021:
(Investment value equivalent in GBP as at 31 December 2020:
In June 2020, the Company announced that it had been notified by the directors of Factom that Factom has filed for reorganisation under Chapter 11 Subchapter V to address structural issues preventing them from raising further capital.
Factom advised that Chapter 11 Subchapter V provisions preserve the position of the existing shareholders and structures the means of paying creditors. The directors of Factom expected Factom to emerge from the Chapter 11 reorganisation in 60 to 90 days.
In April 2021, Coinsilium was notified by Factom that it had received an offer from Inveniam Capital Partners ("ICP") to acquire substantially all of the assets of Factom on terms which would have to be approved by Factom's shareholders.
In August, Coinsilium was notified by Factom that ICP had acquired the assets of Factom and that Factom's former shareholders would be entitled to receive ICP shares.
A further notification was received in August to the effect that, pending confirmation of the final amount of liabilities assumed by ICP and the execution of various legal documents, which the Company has yet to receive, subsidiary undertaking Seedcoin should be entitled to receive 307 Series D ICP shares at a valuation of
Although we believe that Seedcoin is likely to receive the ICP shares, there is a material level of uncertainty in respect of the realisable value of such shares which compels us to take the prudent decision to impair our investment in Factom.
Helperbit is an Italian startup that uses blockchain technology to allow people to donate digital and local currencies to charities and to people in need all over the world, trace their donation and how it is used, offering full transparency of economic flows. In March 2021, Guido Baroncini Turrichia, CEO of Helperbit, shared some possible scenarios about Helperbit's future. Among these scenarios one suggested the liquidation of the company as it seemed unable to remain financially viable in the near future. On 30 March 2021, an extraordinary general assembly gathered shareholders to discuss these scenarios and the shareholders resolved to initiate the liquidation process of the company. On 16 April 2021, a further meeting was convened to finalise the financial statements of Helperbit as of 31 December 2020 and confirm the liquidation at a public notary's office.
The liquidation proceeds are to be shared pro rata among the shareholders, according to their percentage shareholding at the time of liquidation.
During the first half of 2021 Indorse continued to work on Indorse 2.0, introducing several new features to the Indorse network including a staking reward platform and DRA rewards (Decentralised Referral Agents). As of 30 June 2021 there were about 6,790,720 IND tokens staked on the Indorse staking platform.
In March 2021, Coinsilium announced that its wholly owned
Indorse founder and CEO Gaurang Torvekar leads the Nifty Labs tech team. Nifty Labs is focused on developing smart contract systems for NFT applications including a bridge for NFTs on Bitcoin using RSK technology.
Through Nifty Labs, Indorse and Coinsilium aim to develop smart contract systems for NFT applications and explore opportunities for other smart contract systems and models with applications across various industry sectors, including NFT applications compatible with the RSK token standard.
In April 2021, Indorse announced the public alpha software release for 'Nifty Scanner', an analysis tool for digital assets. Nifty Scanner is a browser extension available on Google Chrome, Opera, Mozilla Firefox and Brave.
Nifty Scanner 'scans' Non-fungible Tokens ('NFTs') and provides detailed essential background information on how and where the assets (the media and the metadata) associated with an NFT are stored. This data, whilst publicly available on the blockchain is not always published with the NFT in an apparent manner. Currently, Nifty Scanner is compatible with the OpenSea marketplace and is expected to be compatible with other popular marketplaces in due course.
In June 2021, Indorse announced the sponsors of the 'NFT Vision Hack', a global online hackathon focused on non-fungible token ('NFT') technology which ran from 7 July to 30 August 2021. The results of the hackathon were announced on 21 September. The 'NFT Vision Hack' was organised via Nifty Labs and sponsors included HM Government of
Talented blockchain developers, artists, game developers, and NFT creators from around the world were invited to build innovative solutions using NFTs to ultimately shape the future of this nascent space. The winning projects were given the opportunity to work, partner, and secure grant programs with the event's sponsors.
Investment value equivalent in GBP as at 30 June 2021:
(Investment value equivalent in GBP as at 31 December 2020:
RSK / IOV Labs
In January 2021, Beexo Wallet became the first wallet to integrate RIF Enveloping, a solution designed to make user payment experience akin to those provided in traditional finance.
RIF Enveloping is a solution that supports meta-transactions, enabling third parties to subsidise transaction fees for end users, thereby eliminating the complexity of using native currencies to pay network fees and making the user experience much more intuitive. Applications for the technology include wallet developers covering the cost of new users making their first decentralised finance interactions.
In March 2021, RSK launched a unified digital identity solution ('rLogin') which allows web application developers to integrate blockchain technologies. rLogin is part of the RSK Infrastructure Framework (RIF) suite of tools and is natively compatible with the Bitcoin and Ethereum networks. The solution gives users of any rLogin-enabled application the ability to use their crypto wallets to authenticate and store their data, porting it across different Web 2.0 and Web 3.0 applications as they wish. This also presents an opportunity for users to build their own digital reputation without needing to rely on the traditional banking sector or big tech companies, with the added benefit of being completely in control of how their data is used and managed.
In March 2021, IOV Labs announced Kripton Market, a financial alternative developed on top of RSK to facilitate decentralized transactions through Bitcoin, with over 1,000 associated brands that will offer this option for payment in
Using the advantages afforded by the crypto economy, Kripton Market will allow customers in
In March 2021, the RSK Bitcoin Smart Contract network and the RIF Platform integrated the DeFi AMLT Oracle, created by global RegTech provider Coinfirm. All operations conducted on RSK's protocol will be fully covered with automated proprietary risk assessments from Coinfirm's C-score based on 270+ red flag algorithms. The use of the Oracle positions the RSK protocol for wider adoption by institutional investors and the traditional financial sector looking to gain exposure to decentralised finance.
In April 2021, IOV Labs announced the launch of Tropykus finance, a decentralized finance protocol that seeks to connect the Bitcoin community with citizens in emerging economies to offer them better access to intuitive and fair financial products. Tropykus is based on RSK smart contracts and is focused on uniting the Bitcoin community and those living in emerging economics in a transparent, decentralized way, respecting users' privacy and giving them full control of their assets. Tropykus's goal is to use the potential of Bitcoin to drive positive change to the financial situation of emerging countries, starting with
In May 2021, RSK Network announced it had surpassed Lighting Network (LN) total value locked in Bitcoin (BTC), and at the time stood at 1,445 BTCs locked. The latest milestone was another sign of a strong appetite among users for the Decentralized Finance (DeFi) sector.
The RSK smart contracts platform had over 259,000 transactions, 50,000 active accounts and reached an all-time high of 72% hashing power during April 2021. The number of solutions and integrations in the RSK DeFi ecosystem has experienced significant growth over April - May 2021.
In May 2021, Settle announced RIF's integration with Latamex, the incoming and outgoing fiat to crypto payment platform. Thanks to this partnership, RIF Token will be available to all users in
In June 2021, The Crypto Hall of Fame selection committee announced the twelfth member of the Crypto Hall of Fame: Diego Gutiérrez Zaldívar. Diego is a co-founder of RSK, the first smart contract platform built on Bitcoin that made it fully programmable and is also a co-founder of the Bitcoin Argentina Foundation and the Ibero-American Blockchain Alliance. The Crypto Hall of Fame was launched in April 2021. It celebrates major contributors to the blockchain industry with portraits designed by Max Cryptohead.
Coinsilium's interest in IOV Labs: Coinsilium shareholding of 65,000 series Seed 1 RSK shares was converted to RIF tokens by way of a 'share for token' swap as announced on 19 November 2018. Coinsilium will receive approximately 1,951,846 RIF tokens over the stated vesting period.
StartupToken has been based in
In early 2020, StartupToken started working on a new service, a Bitcoin storage and payment card called Census described as 'Census Smart Card and Wallet', an NFC powered smart bitcoin card, storing coins with military grade protection, without compromising convenience and usability, making the experience of buying and storing bitcoin as simple as possible.
In August 2020, StartupToken Singapore entered into an agreement with a
Throughout the first quarter of 2021, StartupToken's focus was on the marketing and technological development of Minty.Art. On 16 June 2021, Minty.Art announced its deployment on Polygon (formally Matic Network), a scaling solution and framework for building and connecting Ethereum-compatible blockchain networks. Minty.Art is leveraging the benefits of Polygon to deploy its NFT platform for art trading and sponsorship.
In June 2021, Samourai Coop, a French film production studio, announced the release of its latest movie in parallel with a sale of exclusive digital collectibles on Minty.Art. The 80-minute Indie film follows the efforts of Pascal Boyart, known in the art world as Pboy, and a team of volunteers to turn an abandoned gold foundry near
Assessed value of Minty tokens allocated to StartupToken at 30 June 2021 (
Total value of Minty tokens allocated to StartupToken at token issuance price 13 May 2021 (
Assessed total value of StartupToken at 30 June 2021:
(Total value of StartupToken at 31 December 2020:
Assessed value of Minty tokens attributable to Seedcoin at 30 June 2021 (
(Value of Minty tokens attributable to Seedcoin at 31 December 2020:
Assessed total value of investment at 30 June 2021:
(Total value of investment at 31 December 2020:
1. Basis of Preparation
The 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 permitted, the consolidated interim financial statements have not been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting'.
2. Financial Information
The consolidated interim financial statements do not constitute statutory accounts. They have been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS). Except as described below, the accounting policies applied in preparing the interim consolidated financial statements 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 June 2021. The report of the auditors on those financial statements was unqualified.
The Directors have a reasonable expectation that the Group 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 Financial Statements.
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.coinsilium.com. The Group's key financial risks are liquidity, equity securities price risk and foreign exchange movements.
The preparation of 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 are set out in note 4 of the Group's 2020 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period. The consolidated interim financial statements have been prepared on the historical cost basis, except for the measurement to fair value of certain financial instruments.
Changes in accounting policies and disclosures
There are no new and amended IFRS standards that are effective for the first time for the financial year commencing 1 January 2021 that would be expected to have a material impact on the Group.
The consolidated interim financial statements for the 6 months ended 30 June 2021 and for the 6 months period ended 30 June 2020 have not been reviewed or audited.
3. Directors Remuneration
Directors of the Company received total remuneration of
4. Earnings Per Share
Basic earnings per share is calculated by dividing the total comprehensive income attributable to equity shareholders by the weighted average number of ordinary shares outstanding during the period.
5. Financial Assets at fair value through profit and loss
At 30 June 2021, the Company owns unlisted shares in:
The Directors do not recommend the payment of a dividend.
The interim financial statements were approved by the Board of Directors on 29 September 2021.
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