(“KR1” or the “Company”)
Interim Report for the Half Year Ended
The Company is pleased to present its interim report for the half year ended
Chief Executive Officer’s statement
Since its invention in 2008, Bitcoin has lived through numerous market cycles. The longest downtrend lasted 415 days between 2013 and 2015, only then beginning its gradual rise to a crescendo in late 2017. During those two long nervous years, Bitcoin lost 83% of its previous value and the Bitcoin obituaries came thick and fast from the mainstream media. Yet the network statistics told a different story, Bitcoin the network was gaining wider adoption on all metrics and eventually the market caught up.
We’re currently in another downtrend, experiencing the same nervousness in the market as we did in the previous cycle, but instead of
The current trend has, as expected affected our portfolio. We’ve seen a loss due to the decrease in value of our cash equivalents Bitcoin and Ether. When combined with strong correlation between the price of these leading assets and the wider token market, the effects have been felt across most of our more niche token assets too. However, as we chose highly successful projects in the last part of 2016 and early 2017 and drew down on these at the right time, we therefore had significant funds to allocate during the shift in market cycle and we have been able to continue backing projects of the highest quality. Blockchain innovation continues at a rapid pace and we’re excited about how our portfolio is taking shape and we’re confident that when a change in sentiment comes, we will be in a very strong position to make the most of it.
Just as blockchain technology continues to thrive, our fundamentals as a company are also gaining momentum. The success of our investment process is proven, our network of trusted friends, developers and institutions is growing by the day and our ambitions and enthusiasm for this disruptive technology are stronger than ever. These attributes will allow us to make most of the opportunities presented to us in the coming year and we’re excited for what 2019 will bring.
Profit & loss account
6 months to 6 months to 30 June 12 months to 30 June 2017 31 December 2017 2018 Unaudited Unaudited Audited GBP GBP GBP Income Unrealised (loss)/profit (8,099,865) 3,075,436 10,825,365 Realised profit 1,118,846 998,373 5,447,789 Gross (loss)/profit (6,981,019) 4,073,809 16,273,154 Administrative expenses (380,190) (89,065) (1,794,264) (Loss)/profit on ordinary (7,361,209) 3,984,744 14,478,890 activities before taxation Taxation 1,472,242 (1,434,193) (2,868,386) (Loss)/profit on ordinary (5,888,967) 2,550,551 11,610,504 activities after taxation (Loss)/profit per share
(5.33) pence 4.28 pence 3.16 pence
At At 30 June 2018 At 30 June 31 December 2017 2017 Unaudited Unaudited Audited GBP GBP GBP Current assets Debtors 2,040 8,419 2,804 Investments 7,514,839 305,793 14,214,185 Digital currencies 1,176,006 4,138,488 2,505,245 Cash held on trading platforms 1,057,350 1,990 248,927 Cash at bank 58,424 12,864 788,792 9,808,659 4,467,554 17,759,953 Creditors Amounts falling due within one year (2,135,282) (1,475,929) (4,208,376) Net current assets 7,673,377 2,991,625 13,551,577 Creditors Amounts falling due over one year - - - Total assets less current 7,673,377 2,991,625 13,551,577 liabilities Capital and reserves Called up share capital 685,993 590,993 685,993 Share premium account 2,163,649 758,649 2,163,649 Profit and loss account 4,823,735 1,641,983 10,701,935 Equity shareholders’ funds 7,673,377 2,991,625 13,551,577 Net Asset Value per share
6.95 pence 5.02 pence 12.36 pence
Interim report notes
The information relates to the 6-month period from 1 January to
The interim report was approved by the Directors on
The interim report has been reviewed by the company’s auditors but has not been audited.
Basis of accounting
While the financial information included in this interim financial report has been prepared in accordance with the recognition and measurement criteria of Financial Reporting Standard 102 – ‘The Financial Reporting Standard applicable in the
These interim financial statements are the financial statements of the Company.
The financial statements are prepared under the historical cost convention except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below and are in accordance with applicable accounting standards.
Investments are held as current asset trade investments and are valued at the lower of cost and net realisable value. Foreign denomination loans are translated into sterling at the rate of exchange ruling at the balance sheet date. For those investments listed on a recognised market, net realisable value is taken as mid-market price. Where the directors consider the market price of a company is likely to irreversibly fall, additional write downs in valuation to below mid-market price are made.
The net realisable value of certain investments is not readily determinable by reference to a quoted market price. The directors have therefore made their own assessment of the net realisable value and adjusted the carrying value of the investment where it is considered less than cost. This estimate requires estimation techniques, which are reliant upon their experience and expertise.
The Company accounts for digital currencies, which it considers to be an operating asset, at their initial cost and subsequently revalues the carrying amounts of the digital currencies held at each reporting date based on their current fair value using rates obtained from various exchanges, including Oanda and Coinmarket. The rates obtained from these sources represent a generally well recognised quote price in an active market, which market and database is accessible to the Company on an ongoing basis. Digital currencies which have not undergone their ICO (initial coin offering) at the reporting date are valued at cost and the directors have verified that this is in line with the opening prices at ICO post period end. The changes in fair value are recognised in the Company’s Profit and Loss account.
The Company will report again for the full year to
The Directors of
Tel : 01624 676716
Email : firstname.lastname@example.org
NEX Corporate Adviser
+44 (0)20 7469 0930