TechFinancials Inc. - Audited Results to 31 December 2021
RNS Number : 3242U
TechFinancials Inc.
29 July 2022
 

29 July 2022

 

Audited Annual Report for the year ended 31 December 2021

 

 

Financial Highlights

 

·   No Revenues in 2021 following cessation of operations.

·   Pre-tax loss attributable to shareholders of US$0.553 million (2020: profit of US$1.0   million)

·   Cash position of US$0.92 million as at 31 December 2021 (2020: US$1.4 million)

·   Basic earnings per share ('EPS') (US$0.0064) (2020: (US$0.016))

·   In October 2021, the Company's sold its subsidiary Cedex Holdings Limited ("Cedex")

·   In June 2021, the Company stuck off Footies Ltd. ("Footies)

·   In 2021, the Company acquired shares to take minority holdings in a number of companies listed on the LSE and AIM

 

Operational Highlights 

 

Operational Cost Reduction

 

·   The Company decided to close all its subsidiaries and initiated the strike-off of its entities in Israel in 2021. The strike off of both TechFinancials Israel 2014 Ltd and Softbox Technologies Ltd was initiated in H2 2021 and concluded in March 2022.

·   The Company sold Cedex Holdings Limited in October 2021.

Investment  Activities

 

·   The Company invested small amounts in several listed entities in 2021. This activity resulted in profit of $86k.

·   As of today, the Company has only one legal entity - TechFinancials Inc, and as results the costs of operating the company is now minimal.

·   In November 2020, the Company signed with RenewSenses Ltd., an Israeli start-up, a Simple Agreement for Future Equity ("SAFE") following which the Company invested in RenewSenses a total amount of US$ 152k. This was accounted for as a financial asset through profit and loss.

As of December 31, 2021, RenewSenses has failed to raise additional capital for its operations and in the beginning of 2022, it was forced to make all employees redundant. As a result of the conditions that existed at year end (inability of raise funds), the financial asset fair valued was revalued to a nil balance and a total loss of $152k recognized.

 



 

Chairman's Statement

 

2021 was a year in which the Company focused on reducing costs and consolidating its assets. We initiated the closure of all our subsidiaries and sold Cedex.

 

The Board decided to invest some amounts in listed companies and was able to generate good returns from these investments. The Company will continue to look for new ways to increase its value.

 

Dividends

 

The Board will not be recommending a final dividend to the shareholders of the Company for the year ended 2021 (2020: $nil).

 

Outlook and current trading

 

The year was a turning point for the Group, where we initiated the closure of all our subsidiaries and consolidated all our assets, while seeking new investment opportunities to increase the value of the Company.

 

The Group will continue to look for investment opportunities to maximize the Company's value, leveraging its available cash.

 

I would like to thank our shareholders for their continued support in what has been a difficult year.

 

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

 

 

 

 

Eitan Yanuv

Independent Non-Executive Chairman

 

29 July 2022

 

 

 

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

For further information:

     Tel: +972 54 5233 943

 

Peterhouse Capital Limited (Aquis Stock Exchange Advisor and            Broker)

Tel: +44 (0) 20 7469 0930

Guy Miller and Mark Anwyl




 

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2021

 

 



2021

2020

 



US$'000

US$'000

 





 

Revenue                                         


-

619

 

Cost of sales


                         -  

                         (35)  

 





 

Gross profit


-

584

 

 



 

 

Expenses:




 

Research and development


-

(384)

 

Selling and marketing


-

(33)

 

Administrative


(233)

(207)

 

Impairment of goodwill                       


                                        -

                                        -

 

 


(233)

(624)

 

 


 

 

 

 

Operating (Loss) Income


 

(233)

 

(40)

 

 




 

Bank fees


(9)

(20)

 

Foreign exchange income (loss)


(30)

-

 

Profit on disposal of traded securities


86

-

 

Financing income (expenses


47

(60)

 

 


 

 

 

Other Income (expenses)



 

 

Other non-operational income/ (expenses)


-

441

 

Impairment loss on the financial asset held at FVTPL


(152)

-

 

 




 

(Loss)/ Profit before taxation


(338)

381

 

 




 

Taxation


(4)

70

 

 

(Loss) / Profit for the year from continuing operations

 


 

(342)

 

451

 

Gain (loss) from discontinued operations


                                       (181)

                                       566

  Capital loss from a sale of subsidiary


  ____________________(30)

  ____________________-

 

(Loss) / Gain for the year from discontinued operations, net


 

                                       (211)

 

                                       566

 




 

 

Other comprehensive income                            


                                       -

                                       -

 

Total comprehensive Income


(553)

1,017

 

 

 

 

 

 




 

(Loss) / Profit attributeable to:

 




 

Owners of the Company


(553)

997

 

Non-controlling interest


-

20

 

Profit (Loss) for the period


(553)

1,017

 

 

 

 

 

 

 

 

 



                                 2021

                                 2020



                       Cents USD

             Cents USD





Basic                                                    17


(0.64)

1.16

Diluted


N/A

1.16

From continuing operations - Basic


 

(0.40)

 

0.50

 

From continuing operations - Diluted


 

N/A

 

0.50

 

From discontinued operations - Basic


 

(0.24)

 

0.66

From discontinued operations - Diluted


 

N/A

 

0.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Consolidated Statement of Financial Position

As at 31 December 2021



31 December

31 December



2021

2020



US$'000

US$'000

Non-current assets


 

 

Financial asset held at FVPL


-

152



 

 



-

152

 




Current assets




 




Trade receivables, net and other receivables


-

13

Short-term investments


26

-

Cash


920

1,419

 


946

1,432

 


 


 


 

 

Total Assets


946

1,584

 


 

 

Current liabilities




Trade and other payables


89

88

Income tax payable


-

86

 


89

174

 


 

 

Non-current liabilities




Shareholders loan


84

84

 




Equity




Share capital


61

61

Share premium account


12,022

12,022

Share-based payment reserve


798

798

Accumulated profits / (losses)


(12,108)

(11,555)

Equity attributable to owners of the Company


773

1,326

 


 

 

Total Equity and Liabilities


946

1,584

 




The Financial Statements were approved by the Board of Directors and authorised for issue on 29 July 2022 and are signed on its behalf by:

 

 

…………………………………………

Director

 



Consolidated statements of changes in equity

For the year ended 31 December 2021

 

Share capital

 

(Note 14)

 

Share

Premium

 

(Note 14)

 

Share based payment reserve

 

(Note, 15)

 

Revaluation reserve

 

(Note, 9)

 

Accumulated profits/

(losses)

 

 

 

Total

 

 

 

Non -controlling interests

 

(Notes 18)

 

 

 

 

Total

 

 

 

 

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000










 

 

Balance at 1 January 2020

61

12,022

934

 

(12,459)

588

(249)

309










Total comprehensive income (expense) for the year

 

-

 

-

 

-

 

 

 

 

-

 

        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 Share 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 income for the year

-

-

-

-

(553)

(553)


(553)

Balance at 31 December 2021

 

61

 

12,022

 

798

 

 

-

 

(12,108)

773

 

-

 

773

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Consolidated statements of cash flows

For the year ended 31 December 2021

 

The consolidated statements of cash flows for the Group for the years ended 31 December 2021 are set out below:

 

Years ended 31 December


 

2021

2020


 

US$'000

US$'000





Cash Flows from operating activities

 

 

 (Loss) / Profit before tax period


(549)

946

 




Adjustment for:




Amortisation of intangible assets


-

75

Impairment of intangible assets, net


-

37

Gain on bargain purchase



(309)

Depreciation of property and equipment


-

4

Profit on disposal of traded securities


(86)

-

Share option charge


-

6

Foreign exchange differences


82

(70)

Waiver of loan due to NCI


-

(51)

Loss on disposal of subsidiary


30

-

Capital loss on disposal of property and equipment


-

12

Gain from revaluation of intangible assets


-

(577)

Impairment of investment


152

-

 




Operating cash flows before movements in working capital:




Decrease in trade and other receivables


13

589





Increase (decrease in trade and other payables


  48

  (1,445)

R&D tax credit received


-

163

Income tax paid


(93)

(109)

Net cash used for operating activities

 

(403)

(729)





Cash flows from investing activities



Decrease in restricted bank deposits


-

(71)

Consideration from sale of intangible assets


974 

Net cash acquired on acquisition (note A)


 -  

649  

Net cash on disposal of a subsidiary


(75)

-

Purchase of traded securities


(102)

-

Sale of traded securities


163

-

Funds advanced under SAFE agreement


-

(152)

Net cash generated from (used in) investing activities

 

(14)

1,400

 

 







Net increase (decrease) in cash and cash equivalents

 

(417)

671

Cash and equivalents at beginning of period


1,419

672

(Effect of changes in exchange rates on Cash


(82)

76

Cash and equivalents at end of period


920

1,419

 

 

 

The comparative cashflow has been restated to correct the allocation of cashflow movements.

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