ChallengerX Plc - Interim report for the period ended 31 December 2021

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014, as retained as part of the law of England and Wales. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

25 March 2022

ChallengerX PLC

("ChallengerX" or the “Company")

Interim report for the period ended 31 December 2021

ChallengerX PLC (AQSE: CXS), a Software-as-a-Service “SaaS 2.0” influence-monetization tech and digital marketing company serving amateur and semi-pro sports leagues, teams, and players around the world, announces its unaudited financial results for the period ending 31 December 2021.

Highlights:

• Raised a total of €1,000,000 (approx. £832,000) in two pre-IPO rounds into its wholly owned subsidiary SportsX SAS, and £752,000 (before expenses) in its 23 December Aquis IPO.  Total invested capital after expenses was £1,467,000.

• Further developed the Company’s digital assets.

• Cash and cash equivalents at year end were £1,385,000.

Post-period highlights:

• Began negotiations with several new football (soccer) clubs and leagues, and a rugby league regarding the deployment of the Company’s monetization tools.

• Further developed the sales and marketing plan and organization.

• As previously announced, approximately €660,000 (£549,000) in cash in our wholly owned French subsidiary SportsX SAS was mistakenly frozen by the French government as part of an ongoing investigation into a former executive, and we continue to work diligently to recover these funds.

Outlook:

• Technology: The Company’s core monetization technology is maturing, and the Company has begun generating revenues.

• New Customers: The Company is in late-stage discussions with multiple football (soccer) and rugby leagues, teams, and sports news websites, and the Board is optimistic regarding the possibility of multiple new customer and strategic partnership wins during the next few months.

Market Size:

The Board believes that the market for the Company’s “influence monetization tech” is extremely large in the context of the global amateur and semi-pro sports ecosystem, which includes players, teams, sports news sites, and other influencers such as commentators and bloggers.  Globally the number of active football (soccer) clubs is well over 1,000,000, and each of these clubs likely has 20 to 25 players, many of whom have their own fans and following. Nearly 100% of these clubs and players are eager to increase their income without incurring any upfront costs, and with a total market of only 1,000,000 clubs that could on average generate just £100 in monthly revenues for the Company, it would set the total available market at £1.2 billion per annum.

Commenting on the results, John May, Non-Executive Chairman of ChallengerX, said: “The Company’s successful flotation on the AQSE Growth Market was a significant milestone and provided the Company with the investor base and capital it needs to continue the development of its influence monetization technologies and new customer acquisition initiatives.”

The directors of ChallengerX plc accept responsibility for this announcement.

I would also like to take this opportunity to thank all our shareholders for their support.

John May, Non-Executive Chairman

For further information please contact:

About ChallengerX PLC:

Listed on the Aquis Stock Exchange in London, ChallengerX plc, is a Software-as-a-Service “SaaS 2.0” monetization technology and digital marketing company serving sports clubs, players, sports news sites, and other influencers around the world.  Its technology helps its customers, at no additional cost, generate incremental recurring revenues from their existing followers and from the photos and videos they already post online.

ChallengerX also offers bespoke service packages that help clubs develop and build their brand, rapidly grow their base of fans, gain additional higher-end sponsors, and source and sell club merchandise through a club-branded eStore the Company operates on each club’s behalf.

Unaudited consolidated statement of comprehensive income
for the period ended 31 December 2021

Unaudited consolidated statement of changes in equity
for the period ended 31 December 2021

Consolidated Statement of financial position
as of 31 December 2021

Unaudited Consolidated statement of Cash Flows
for the period ended 31 Dec 2021

Notes to the interim accounts

for the period ended 31 December 2021

1. General information and accounting policies

• ChallengerX PLC is a company incorporated in the United Kingdom
• Its 100% wholly-owned subsidiary SportsX SAS is incorporated in France
• The company was incorporated on 7 June 2021 and therefore there is no comparative statement of financial position
• The condensed consolidated interim financial statements do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006
• The financial information for the period ended 31 December 2021 is prepared in accordance with IFRS
• The condensed consolidated interim financial statements do not include all of the information required for full annual financial statements
• The condensed interim financial statements were authorised for issue on 23 March 2022

2. Issued capital

Issued capital follows:

3. Loss per Ordinary Share

The loss per share has been calculated based on the following results and weighted average number of shares:

DISTRIBUTION OF INTERIM REPORT

Copies of the Interim Report for the period ended 31 December 2021 are available on the Company's website www.challengerx.io.