ChallengerX Plc - Management Accounts

31 January 2023

ChallengerX plc
(“ChallengerX”, “CX" or the "Company")

Management accounts for the quarters ended 30 September 2022 and 31 December 2022

ChallengerX (AQUIS: CXS), the trading company with principal activity of employing both traditional and non-traditional marketing strategies to rapidly “professionalise” amateur and semi-professional sports clubs around the world announces its unaudited management accounts reports for the quarters ended 30 September 2022 and 31 December 2022.

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

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Directors Statement

Introduction

ChallengerX plc (the “Company” or “ChallengerX”) is an investment company quoted on the Aquis Stock Exchange (“AQSE”) Growth Market. The Company was incorporated on 7 June 2021 and its shares were admitted to trading on 23 December 2021, raising gross proceeds £751,700 before expenses, and Net Proceeds of £578,010.

Activities during the periods

The company continued to advance its development of a platform for the promotion and marketing of sports clubs in both a traditional and non-traditional way. Expenditure was particularly heavy in the second three

months to 31 December 2022 in terms of principally programmers costs which, as an accounting policy, are written off as incurred. Further development and related costs will be required as clients are brought on board.

Outlook

The development of the marketing platform as mentioned above will require more expenditure and it is hoped that recoveries of monies sequestrated by the French Authorities from the subsidiary SportsX SAS will assist in this regard. Meanwhile the company will look to supplement its income by applying itself to other project opportunities and will continue to review its business plan and strategy by looking at transactions in other sectors that could lead to a reverse transaction whilst keeping its establishment overheads as lean as possible.

John May

Chairman

Unaudited Statement of Comprehensive Income for the quarters ended 30 September and 31 December 2022

Statement of Financial Position As at quarters ended 30 September and 31 December 2022

Statement of Changes in Equity

For the quarters ended 30 September and 31 December 2022

Statement of Cash Flows

For the quarters ended 30 September and 31 December 2022

Notes to the financial statements

1. General information

ChallengerX plc is a public limited company limited by shares and was incorporated in England on 7 June 2021 with company number 13440398. Its registered office is 16 Great Queen Street, London, WC2B 5DG.

The Company’s shares are traded on the Aquis Stock Exchange Growth Market under symbol CXS and ISIN number

GB00BMD0WG01.

The Company was first incorporated on 7 June 2021.

The information for periods ended 30 September 2022 and 31 December 2022 are unaudited

2. Basis of Preparation

The quarterly management accounts of ChallengerX plc have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, “The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland” (“FRS 102”) and the Companies Act 2006.

These management accounts are prepared on a going concern basis, under the historical cost convention, as modified by the recognition of listed investments at fair value.

The financial statements are presented in Pounds Sterling, which is the Company’s presentation and functional

currency.

The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment and complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3 to the financial statements.

The financial statements have been prepared on the historical cost basis and are presented in £’000 unless

otherwise stated.

3. Going Concern

As at 31 December 2022, the Company had cash of £92,000. As a newly established trading business, the Company has limited operating cash flow and is dependent on the performance of its trading and its cash balances for its working capital requirements. As at the date of this report, the Company had approximately £55,000 cash at bank.

The Directors continue to seek recovery of the sequestered funds held by the Administrator of it’s subsidiary, SportsX, which are believed to amount to approximately £0.6m.

For this reason, it continues to adopt the going concern basis in preparing the financial statements.

4. Earnings per share