TechFinancials Inc. - Interim Report for the Six Months to 30 June 2022
RNS Number : 2271B
TechFinancials Inc.
30 September 2022
 

30 September 2022

 

TechFinancials, Inc.

("TechFinancials" or the "Company")

Unaudited Interim Report for the Six Months Ended 30 June 2022

TechFinancials Inc. (AQSE: TECH), today announces its unaudited interim results for the six-month period ended 30 June 2022 ("H1 2022").

Financial Overview

·         

Company Revenues of US$ nil (H1 2021: US$ nil)


·         

Loss for the period attributable to shareholders of US$0.16m (H1 2021: loss of US$0.10m)


·         

Cash position at the period end of US$0.76m (31 December 2021: US$0.92m)


·         

Basic loss per share ("EPS") of (US$0.002) (H1 2021 (US$0.001))


 

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

"In the first half of the year the Company continued to focus on administrative cost reductions and will continue to look for investment opportunities to maximize the Company's value, leveraging its available cash."

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 2022 the Company continued to focus on reducing costs. The Board decided to invest some amounts in listed companies. The Company will continue to look for new ways to increase its value.

 

 

Outlook

 

We will continue to look for opportunities to materialize our assets or join forces with other companies in order to be able move forward.

 

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

 

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

 

Eitan Yanuv

Independent Non-Executive Chairman

29 September 2022

 

Executive's Board Member Statement

Financial Results

In 2020, the Company closed all of its operating historical businesses and since then the Company has not recorded any income.

 

 

The operating loss for the period was US$0.074m (H1 2021: loss of US$ 0.13m); the operating expenses for the period were attributed mainly to general and administrative costs associated with being a listed Company.

 

Financial expenses for the period were US$ 0.089m, attributed predominantly to US$0.06m loss from exchange rate differences.

 

No taxes on income were recorded in the period (H1 2021: US$ 0.01m).

 

The loss after taxation for the period attributable to shareholders of the Company was US$ 0.16m (H1 2021: loss of US$ 0.10m).

 

 

The Company's cash position for the period ended 30 June 2022 was US$0.68m (31 December 2021: US$1.3m).

 

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

 

 

Eitan Yanuv

Chairman

29  September 2022

 

 

 

 



 

Statement of Comprehensive Income

For the six months period ended 30 June 2022


Note


Unaudited
6 Months Period

Ended
30 June 2022

US$'000

 

Unaudited
6 Months Period Ended
30 June 2021

US$'000

 

Audited
12 Months Period Ended
31 December 2021

US$'000

 

Revenue


 

-


-


-

 

Cost of sales



-


-


-  


Gross profit

 

 

-

 

-

 

-

 









 









 

Research and development



-


-


-


Selling and marketing



-


-


-


Administrative



(74)


(133)


(233)




















Operating Income (Loss)

 

 

(74)

 

(133)

 

(233)

 









 









 

Bank fees



(3)


(18)


(9)

 

Foreign exchange loss



(58)


(4)


(30)

 

Gain (loss) from tradable securities



(28)


63


86

 

Financing Income (expenses)

 

 

(89)

 

41

 

47

 

 

 

 

 

 

 

 

 

 


 

 








 

 







Other Income  (expenses)

 

 







Other income (expenses), net


 

-


-


(152)



 

 








 

 








 

 







Profit (Loss) before taxation

 

 

(163)

 

(92)

 

(338)

 

Taxation



-


(8)


(4)

 

Profit (Loss) from continuing operations

 

 

 

(163)

 

(100)

 

(342)

 

 

 

 

 

 

 

 

 

 

Capital loss from sale of subsidiary





-


(30)

 

Gain (Loss) from discontinued operations



-


-


(181)

 

Gain / (Loss) from discontinued operations, net

 

 

-

 

-

 

(211)

 

Other comprehensive income

 

 

-


-


-

 

Total comprehensive Profit (Loss)

 

 

 

(163)

 

(100)

 

(553)

 

 








 

Profit  (Loss) attributable to:








 

Owners of the Company



 (163)


 (100)


(553)

 

Non-controlling interests



-


-


-

 

Profit (Loss) for the period

 



(163)


(100)


(553)

 

 








 

 

 

 

 

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

 



Unaudited
6 Months Period

Ended
30 June 2022

(Cents USD)


Unaudited
6 Months Period Ended
30 June 2021

(Cents USD)


Audited
12 Months Period Ended
31 December 2021

(Cents USD)

 

Basic



(0.19)


(0.12)


(0.64)

 

Diluted



(0.19)


(0.12)


(0.64)

 

From continuing operations - Basic



(0.19)


(0.12)


(0.40)

 

From continuing operations - Diluted



(0.19)


(0.12)


(0.40)

 

From discontinued operations - Basic



N/A


N/A


(0.24)

 

From discontinued operations - Diluted



N/A


N/A


(0.24)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statement of financial position

As of 30 June 2022

 

 

 

 

Note

 

Unaudited
30 June

2022

US$'000

 

Unaudited
30 June 2021

US$'000

 

Audited
31 December 2021
US$'000

 

Non-current assets

 

 

 

 

 

 

 

 

Financial asset held at FVTPL


 

-



-

 


 

 

-


152

 

-

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Trade receivables, net and other receivables

4

 

11



-

 

Short term investment


 

74



26

 

Cash

 

 

687


1,329


920

 


 

 

772


1,392

 

1,432

 

 

 

 

 


 

 

 

 

Total Assets

 

 

772


1,544

 

946

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Current liabilities

 

 

 

 

 

 

 

 

Shareholders loan

 

 

89


89


84

 

Current Liabilities

 

 






 

Trade and other payables

5

 

73



89

 

Income tax payable

 

 

-


90


-

 


 

 

73


230

 

89



 

 

 


 

 

 


Total Liabilities

 

 

162

 

319

 

173


 


 






 

Equity


 






 

Share Capital


 

61


61


61

 

Share premium account


 

12,022


12,022


12,022

 

Share-based payment reserve


 

798



798

 

Accumulated losses

 

 

(12,271)


(11,656)


(12,108)

 

Equity attributable to owners of the Company

 

610


1,225

 

773

 

 

 

 






 

Non-controlling interests

 

 

-


-


-

 

Total equity

 

 

610


1,225

 

773

 


 

 






 

Total Equity and Liabilities

 

 

772


1,544

 

946

 

 

Consolidated Statement of changes in equity

For the six months period ended 30 June 2022

 

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 2020

61

 

12,022

798

-

 

(11,555)


 

1,326

 

-

 

1,326

 

Total comprehensive loss for the year

-


-

-

-


(553)


(553)


-

 

(553)

 

Balance at 31 December 2021

61

 

12,022

798

-

 

(12,108)

 

 

773

 

-

 

773

 








 

 

 

 

 

 

 

 

Total comprehensive loss for the period

-


-

-

 

-


(163)


 

(163)


-

 

(163)

 

Balance at 30 June 2022

61


12,022

798

 

-


(12,271)


 

610


-

 

610

 

 



 

Consolidated statement of cash flows

For the six months period ended 30 June 2021


Note

Unaudited 6 months ended 30 June 2022

 

 

Audited Year ended 31 December 2021


 

US$'000

 

 

US$'000

Cash Flow from operating Activities

 

 

 

 

 

Profit (Loss) before tax for the period


(163)



(549)

Adjustment for:






Foreign exchange differences


78



82

Loss (gain) from short term investment


28



(86)

Loss on disposal of subsidiary


-



30

Impairment of investments in subsidiaries 


-



152







Operating cash flows before movements in working capital:




Decrease (increase) in trade and other receivables

4

(11)



13

Increase (Decrease) in trade and other payables

5

(11)



48

Increase in other current liabilities


-



-

Income tax paid


-



(93)

Net cash (used in) / generated from operating activities

(79)

 

 

(403)

 

 

 

 

 

 

Cash Flow from investing Activities:






Net cash on disposal of subsidiary


-



(75)

Purchase of tradable securities


(77)



(102)

Sale of tradable securities


-



163

Net cash generated from/ (used in) investing activities

 

(77)

 

 

(14)

 

 

 

 

 

 

Cash Flow from financing Activities:






Interest payments


-



-

Net cash generated from/ (used in) financing activities

 

-

 

 

-

 




 

 

 




 

 

 




 

 

 




 

 

Net decrease in cash and cash equivalents

 

(156)

 

 

(417)

Cash and equivalents at beginning of period


920



1,419

Effect of changes in exchange rates on Cash


(77)



(82)

Cash and equivalents at end of period

 

687

 

 

920

 

 

 

 

 

                                                 

Notes to the financial statements

1.    General Information

TechFinancials, Inc, (the "Company") was 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 Company for each of the periods ending 30 June 2022, 30 June 2021 and 31 December 2021.

 

Basis of preparation

As permitted, the Company 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 2021, 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 Company's 2021 audited financial statements. Statutory financial statements for the year ended 31 December 2021 were approved by the Board of Directors on 30 July 2022.

The Directors approved these condensed interim financial statements on 29 September 2022.

 

Risks and uncertainties

 

The key risks that could affect the Company's short and medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Company's 2021 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 financial information for the 6 months ended 30 June 2022 and the 6 months ended 30 June 2021 has not been audited.

 

No dividends have been paid in the period (2021: $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 have not changed during the interim period and are set out in note 3(v) of the Company's 2021 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:

Loss per share

Unaudited
6‑month period ended
30 June 2022

 

Unaudited
6‑month period ended
30 June 2021

 

Audited
Year ended 31 December 2021

 

US$'000

 

US$'000

 

US$'000

Basic

 

 

 

 

 

Loss attributable to equity holders

(163)


(100)


(553)

Weighted average number of shares basic

85,680,979


85,680,979


85,860,979


US$


US$


US$

Loss per share - basic

(0.0019)


(0.0012)


(0.0064)

Loss per share from continuing operations - basic

(0.0019)


(0.0012)


(0.0040)

Loss per share from discontinued operations - basic

-


-


(0.0024)







  Loss per share

 

Unaudited
6‑month period ended
30 June 2022


Unaudited
6‑month period ended
30 June 2021


Audited
Year ended 31 December 2021

 

US$


US$


US$

Diluted






Weighted average number of shares diluted

85,680,979


85,680,979


85,680,979







Loss per share - diluted

(0.0019)


(0.0012)


(0.0064)

Loss per share from continuing operations - diluted

(0.0019)


(0.0012)


(0.0040)

Loss per share from discontinued operations - diluted

-


-


(0.0024)







 

 

4.    Trade and other receivables

 

 

Unaudited

30 June 2022

 

Unaudited

30 June 2021

 

Audited
31 December 2021

 

US$'000

 

US$'000

 

US$'000

 






Trade Receivables, net

 

-


-


-

Prepayments

 

11


10


-

Short term deposit

-


-


-

 

 

 

 

 

11

 

10

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

5.    Trade and other payables

 

 

Unaudited

30 June 2022

 

Unaudited

30 June 2021

 

Audited
31 December 2021

 

US$'000

 

US$'000

 

US$'000

 






Trade Payable

 

-


27


39

Accrued liabilities

73


118


50

 

 

 

 

 

73

 

145

 

89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                          

 

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