DJ INTERIM FINANCIAL STATEMENTS TO 30 JUNE 2019
Coinsilium Group Limited (COIN)
INTERIM FINANCIAL STATEMENTS TO 30 JUNE 2019
27-Sep-2019 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
27 September 2019
COINSILIUM GROUP LIMITED
("Coinsilium" or the "Company")
UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTH PERIOD
ENDED 30 JUNE 2019
Coinsilium Group Limited ("Coinsilium" or the "Company"), the blockchain
venture builder and investor that finances and manages the development of
early-stage blockchain technology companies, is pleased to announce its
unaudited consolidated interim financial statements for the six months ended
30 June 2019.
Now in its fourth year of operations as a listed company, the Directors
remains focused on delivering its vision of providing retail investors with
exposure to a diverse range of high-quality, carefully profiled
opportunities in the fast evolving blockchain technology sector.
Corporate Highlights:
· Wholly owned Gibraltar registered subsidiary, Coinsilium (Gibraltar)
Limited, incorporated;
· Advisory services provided in relation to OASISBloc's presale and
Initial Exchange Offering ("IEO"); and
· The Times Group, India's largest Media group, agrees investment of up to
US$6.5m in Coinsilium Investment portfolio company, Indorse, including an
initial investment of US$2m as a convertible note, with a valuation of
US$15 million with an option of a further US$4.5m. Investment is being
used for Indorse's expansion into India and to build demand for its
services through The Times Group's 360-degree media assets in India, which
rank among the most popular titles in the country. Based on The Times
Group investment at a valuation of USD $15m, the implied value of
Coinsilium's 10% shareholding in Indorse is USD $1.5m, representing a 350%
uplift in the two years since Coinsilium's initial investment at the
pre-seed and seed stage.
Commenting, Malcolm Palle, Chairman of Coinsilium, said: "The period under
review was a time of significant transition for Coinsilium, particularly
with the relocation of the Company's core operations to Gibraltar, which
occurred during the first three months of the year. Despite less than
favourable market conditions for the first half of this period, it was
pleasing to see that by the close, a sector-wide recovery was well underway,
with the industry also regaining much of its previous momentum.
"We are witnessing the blockchain industry's move toward maturity and as
such, Coinsilium is proud to be advising, and investing in what we believe
are solutions which will unleash the benefits of blockchain technology to
society at large. In particular, we believe our work with IOV Labs provides
an exciting market opportunity as the RSK blockchain and the RSK
Infrastructure network (RIF) will become the backbone of numerous highly
useful decentralised applications (dApps) across various sectors.
"Across the Company's investing, venture building and advisory services
divisions, we look forward to the future with confidence. Finally, the Board
would like to once again thank all shareholders, partners and team members
for their continued support."
Financial Highlights:
· Revenue for the period of GBP108,967 (H1 2018: GBP1,333,515) - the decrease
attributable to the fees generated from Token Advisory Services;
· Profit for the period from continuing operations GBP237,787 (H1 2018:
profit of GBP554,605);
· Profit per share of GBP0.002 (H1 2018: profit per share of GBP0.005);
· Financial assets at fair value at profit or loss of GBP1.69m at 30 June
2019 (31 December 2018: GBP1.4m);
· Total other current assets GBP164,945 at 30 June 2019 (31 December 2018:
GBP251,810); and
· As at 30 June 2019, cash and cash equivalents amounted to GBP475,340 (31
December 2018: GBP592,171).
· No dividends were paid or recommended to be paid during the period.
The directors of the Company accept responsibility for the contents of this
announcement.
For further information, please contact:
Coinsilium Group Limited +44 (0) 7785 381 089
Malcolm Palle, Executive Chairman www.coinsilium.com
Eddy Travia, CEO
Peterhouse Capital Limited +44 (0) 207 469 0930
Guy Miller / Mark Anwyl
(NEX Exchange Corporate Adviser)
SI Capital Limited +44 (0) 1483 413 500
Nick Emerson
(Broker)
Yellow Jersey PR +44 (0) 20 3004 9512
Chris Flame / Dominic Barretto
(PR & IR)
Outlook
We are now seeing a rapid maturation within the industry itself which bodes
well for many of our current and proposed new ventures. And as we now look
to expand the scope of our global advisory services and venture activities
from our Gibraltar base, we are most optimistic that we can now start to
develop a sustainable and scalable advisory service offering with the
potential to generate reliable recurring revenues, to complement our ongoing
token sale advisory services and investment activities.
It is also most encouraging to see the growing pace of mainstream awareness
for cryptocurrencies and a greater sense of mainstream acceptance, driven in
no small part by the media coverage of the likes of Facebook and their
partners with the proposed launch of Libra in 2020.
The Directors are optimistic that this trend of awareness and acceptance is
set to continue, and with the relocation of our core activities to Gibraltar
now complete, the Company has a solid base from which to build on this
momentum and ensure that the business is well positioned to capitalise on
the growth opportunities that lie ahead.
Post Period Highlights:
· 1 July 2019 - Annual General Meeting of the Company held at 9.30 a.m.
all resolutions were duly passed;
· 11 July 2019 - New Strategic Advisory Agreement (the "Agreement").
Coinsilium (Gibraltar) Limited together with StartupToken Limited have
signed an Agreement with IOV Labs Limited to support and promote the RSK
Smart Contract Network and RSK Infrastructure Framework blockchain
solutions in Singapore and the Southeast Asia enterprise markets;
· 29 July 2019 - Appointment as an Advisor to Jur AG ("Jur"). Jur is a
Zug-registered company developing a blockchain-based decentralised legal
ecosystem, automating the process of contract creation, execution,
enforcement and dispute resolution; and
· 2 September 2019 - Investment portfolio company Indorse Pte. Ltd
provided the Company with an Operational Update. Highlights included,
Strong growth and robust pipeline of new small and large enterprise
clients from India and Singapore. Successful delivery of strategic
advertising campaigns, mainly through the Economic Times print and online
media channels, leveraging the relationship with The Times Group. Distinct
product lines and optimised, scalable revenue model established. Material
near term revenues targeted with two Fortune 500 companies amongst initial
clients. Featured as a sponsor for the prestigious Economic Times Startup
Awards 2019.
Significant Developments for Coinsilium's Investment Portfolio Companies:
Blox
Blox enables users, traders and enterprises to manage and track their
cryptocurrency portfolio with pro tools and advanced management features
like auto-sync for exchanges and wallets, and daily snapshots of the
portfolio balance and activity.
Throughout the first half of 2019, the Blox team has continued to on-board
business clients paying a monthly subscription to access Blox professional
cryptocurrency portfolio management tools. Blox allows companies access to
share the workspace with team members, auditors, CFO, and CPA to include all
parties involved in accounts, audits or taxes preparations.
Bundle Network
In January 2019, Bundle Network reported they had strengthened their
collaboration with Istanbul-based startup accelerator RDC Smartup. RDC
Smartup had been established by software development company RDC Partner.
RDC Smartup's co-founder Onder Uysal joined Bundle Network management team
in charge of strategy and business development.
In February 2019, Bundle pursued the development of the Beta version of its
platform and integrated some of the main cryptocurrency exchanges.
In April 2019, the Bundle Network Head of Strategy and Business Development
joined the Draper University programme. Draper University is a Silicon
Valley-based school for entrepreneurs founded by Tim Draper.
Elevate Health
During the first half of 2019, Elevate Health has pursued the development of
their proprietary mobile application with programmes to track and assess the
changes in lifestyle behaviour of users in preparation for the roll out of a
comprehensive pilot program in Southeast Asia and Australia.
Programmes developed by Elevate Health include:
Unplug: a proprietary smartphone device management tool to integrate with
the Elevate Health App, developed for corporations with the aim of reducing
daily screen time use by their employees (Facebook, WhatsApp etc) for non
work-related purposes and to prevent loss of productivity and attention
associated with these habits. Corporations will reward employees for time
spent offline via Unplug.
Soberlink: Elevate Health is working with Soberlink, an FDA-cleared Cellular
Device which allows the remote detection of alcohol use and incorporates
biometric facial recognition for monitoring an individual's sobriety.
Potential use cases include, for example, insurance companies and recovery
treatment centres. The hardware device interfaces with the Elevate Health
mobile phone application. Rewards will be paid to users via the Elevate
Health platform following negative results indication if no alcohol was
detected by the device.
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Quit: Designed to support users to quit smoking. A small and discreet smart
device plugs into Quit and is fingerprint protected. The user wears the
'Smokerlyser' and receives random requests to test the CO level showing a
difference in the smoking frequency. The results of the tests are sent and
processed automatically by the Elevate Health platform and rewards are paid
to the users following negative results indicating a decrease in the smoking
frequency.
Coinsilium interest in Elevate Health: 5.0 % of the total equity
Factom
Post period, in August 2019, Factom announced that the Factom Protocol was
being leveraged by a new project, the PegNet, that adds payments and store
of value utilities to the Factom Protocol. The PegNet is an independent,
open source protocol that delivers 30 protocol backed tokens pegged to real
world assets such as the U.S. dollar, Euros and other key fiat currencies as
well as hard assets, such as gold, and a number of cryptocurrencies.
According to Factom, the PegNet should increase liquidity and demand for
Factom's tokens. PegNet CPU mining went live in August 2019.
Post period, in September 2019, the U.S. Department of Energy ("DOE")
granted circa USD200,000 to Factom to protect the national power grid.
According to the DOE, the project seeks to protect the security of millions
of devices.
Coinsilium interest in Factom: 1.06 % of the total equity
Indorse
Indorse uses a global network of experts to assess and confirm the
abilities, expertise, and achievements of candidates to help companies
worldwide find the best tech talent? -? with an initial focus on the coding
sector.
In June 2019, Brand Capital, the strategic investment arm of India's largest
media house, The Times Group, agreed to invest up to US$ 6.5m in the
Singapore-based skills verification platform Indorse. The investment was to
be used for Indorse's expansion into India and to build the demand for its
services through The Times Group's 360-degree media assets in India, which
rank among the most popular titles in the country. The investment has been
structured as a USD $2m convertible note, with a valuation of USD $15
million, with the option of a further tranche of USD $4.5m.
Indorse have already worked with both small and large tech companies in
finding suitable talent. Most recently, it conducted a tech recruitment
event to assess coding and data science candidates for South-East Asia's
biggest ride-hailing firm, Grab, through which they processed 2,500
applications.
Post period, in August 2019, Indorse sponsored the Economic Times Startup
Awards 2019 which rewarded noticeable start-ups in India on the back of
these start-ups outstanding performance. Malcolm Palle, Executive Chairman,
and Eddy Travia, CEO, were representing Coinsilium at the event in
Bangalore.
Coinsilium interest in Indorse: 10.0 % of the total equity
RSK / IOV Labs
In February 2019, IOV Labs announced that the RSK blockchain had become the
most secure smart contract platform in the world, and the second most secure
blockchain behind the Bitcoin blockchain. As reported by the Crypto51
website, which aggregates data from Mine the Coin, CoinMarketCap, and
NiceHash, the cost at the time to execute a 51% attack on Bitcoin cost US$
244,853. By surpassing 45% of the hashing power of the Bitcoin network, an
attack on the RSK Smart Contract Network would cost approximately US$
112,000 per hour. This made RSK one of the most secure and reliable
platforms for developers to build their dApps and proved that merge-mining
can succeed in securing Bitcoin sidechains.
In April 2019, IOV Labs announced that developers can now launch an RSK
Smart Mainnet node on Microsoft's Azure BaaS offering, becoming one of the
few public blockchains supported by Microsoft's Blockchain as a Service
(BaaS) marketplace. The integration provides a simplified process for
setting up an environment that facilitates the development of decentralized
applications (dApps) and services supported by the Bitcoin blockchain.
In May 2019, IOV Labs announced it has officially launched the RIF Lumino
Network as part of the RSK Infrastructure Framework (RIF OS). RIF OS is a
suite of open and decentralized infrastructure protocols that enable faster,
easier, and scalable development of distributed blockchain applications
built atop the RSK Network.
The RIF Lumino Network, an integral part of the RIF Payments Protocol,
provides scalability without compromising long term sustainability. The RIF
Lumino Network is similar to the Lightning Network but provides scalability
not only for Bitcoin but for every token running on the RSK Network.
The RIF Lumino Network is the second major implementation of RIF OS
protocols to be launched on RIF OS since its debut in November 2018.
In May 2019, IOV Labs and Monday Capital announced the launch of the first
Blockchain Innovation and Development Studio for Bitcoin, RSK and RIF OS in
San Francisco and a global Ecosystem Fund. The Studio will create new
developer tools that will streamline the integration of decentralized
infrastructure. It will be a space of experimentation that facilitates the
creation of next-generation blockchain solutions in partnership with
startups and corporations in order to identify real-world problems that
blockchain-based products and services can solve.
The Ecosystem Fund, managed by Monday Capital, a strong supporter of the RIF
Ecosystem, will focus on supporting projects around the world that would
benefit from RSK/RIF OS technology integration through targeted investments
of between $100,000 and $1 million. The Ecosystem Fund will work closely
with the Studio to ensure holistic support of the projects.
In June 2019, IOV Labs announced a partnership with Swarm, a distributed
storage platform and content distribution service, to implement and address
the incentivization behaviour of the Swarm network as a whole, including the
Ethereum and RSK implementations. As part of the collaboration, they are
also jointly developing the first implementation of the concept under RIF
Storage services - which will pave the way for a wide array of innovation
related to the blockchain storage industry.
RIF Storage is a unified interface and set of libraries to facilitate
encrypted and decentralized storage and streaming of information. RIF
Storage is meant to allow users to store and share all sensitive data in a
secure manner. The accounting and payment system will utilize the RSK
sidechain, notably including the recently launched Lumino transaction
scaling solution. The RIF Storage beta launch integrated with Swarm on RSK
is expected to be launched by the end of Q3 2019.
In June 2019, IOV Labs announced the launch of RIF Name Service Multi-Crypto
which allows users to manage all domains from one master dashboard,
streamlining ease of use and fostering blockchain technology mass adoption.
A first for the industry, the improved RIF Name Service (RNS) is the only
service that supports and manages domains originating from any blockchain.
Previously, RNS could only support addresses built on the RSK Network,
however, with the new upgrade, domain owners can integrate their domains
into the RNS architecture and manage them from one master dashboard,
streamlining decentralised domain ownership.
RNS simplifies the blockchain Domain Name System (DNS), by turning
traditional blockchain domains that appear as a series of randomised letters
and numbers into human-readable form, such as a name or an easily remembered
word, greatly reducing complexities and errors while opening up blockchain
domain accessibility.
Coinsilium interest in IOV Labs: Coinsilium shareholding of 65,000 series
Seed 1 RSK shares was converted to RIF tokens by way of a 'share for token'
swap as announced on 19 November 2018. Coinsilium will receive approximately
1,951,846 RIF tokens over the stated vesting period.
Financial Review
In the period under review revenue for the six months ended 30 June 2019 was
GBP108,967 compared to GBP1,333,515 for the six months ended 30 June 2018. The
decrease is attributable to the fees generated from Token Advisory Services.
The Group generated a profit for the six months ended 30 June 2019 from
continuing operations of GBP237,787 which was compared to a profit of GBP554,605
for the six months ended 30 June 2018.
The earnings per share was a profit of GBP0.002 for the six months ended 30
June 2019 which was compared to a profit of GBP0.005 per share for the six
months ended 30 June 2018.
The financial assets at fair value through profit or loss increased to
GBP1.69m at 30 June 2019 and this compared to GBP1.4m at 31 December 2018.
The total other current assets, which is a combination of cryptocurrencies
and tokens, amounted to GBP164,945 at 30 June 2019, which was a decrease from
GBP251,810 on 31 December 2018.
Cash and cash equivalents amounted to GBP475,340 as at 30 June 2019, compared
to GBP592,171 as at 31 December 2018.
In summary, given the prevailing market conditions during much of the period
under review, the Board are pleased with the Company's profitability and
performance during the past six months compared to the full year ended 2018.
Corporate
TerraStream Limited
Coinsilium's wholly owned Gibraltar-based subsidiary, TerraStream Limited
was established with the aim to facilitate the application of blockchain
technology for Token based alternative funding solutions with potential
applications across several industry sectors; the initial focus being on the
mining and resource extraction industries and precious metals in particular.
From a regulatory perspective, this business model would likely be
considered as 'asset backed' lending and in the Company's Strategic Business
Update announced 14 January 2019, the Company highlighted the need for
greater regulatory clarity before committing further resources towards
TerraStream's development. The Directors are now considering a revised
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development strategy for TerraStream and in light of the recent improvement
in market conditions, early stage discussions with potential industry
partners have been initiated. In the event of material developments, further
announcements will be made in due course.
Flowstone Capital Limited
In October 2018, the company announced the establishment of Flowstone
Capital Limited, a 100%-owned private crypto fund registered in Gibraltar.
In light of the prevailing market conditions during the period under review,
the Directors took the decision to defer seeding and launch of the fund
until such time as market conditions improved. Due to the flexible structure
the Company has utilised, Flowstone Capital has required minimal funding and
management time to maintain. With market conditions improving the Board has
been evaluating the necessary requirements for Flowstone's launch. During
and post period the Company has received several expressions of interest
from parties wishing to collaborate with Flowstone. Further updates will be
provided to the market in due course should any of these expressions of
interest be pursued. In the meantime, the Board continues to explore
alternative models with the aim of maximising shareholder value of Flowstone
Capital.
Advisory Clients
OASISBloc
In June 2019, Coinsilium announced its engagement as advisor to Singapore
registered OASISValue Pte. Ltd. ("OASISBloc").
OASISBloc, backed by DoubleChain Inc in Korea, is the first blockchainised
data platform designed for trading useful data and value in the business
world. OASISBloc consists of Oasis Chain and 21 Domain Chains focused on
various industries.
OASISBloc aims to build a solid ecosystem by gathering partners from many
industry sectors to act as a data marketplace. OASISBloc adds extra value to
data through AI and big data analysis. The Domain Chains benefit from
OASISBloc's value-added services and market data platform. A token
ecosystem, with the OSB token at its core, will provide fair rewards to all
participants and contributors.
The Oasis Chain and the Domain Chains will use the innovative ePOA consensus
algorithm (equitable Proof of Authority) to ensure that block generations
and verifications are conducted by a selected trusted authority. OASISBloc
is developed by Korean blockchain studio Doublechain Inc, a Top 10
Blockchain Technology Solution Provider (as ranked by APAC CIO Outlook), and
is led by Mr. William Samgu Chun, pioneer entrepreneur and innovator in
blockchain technologies.
DIRECTORS' STATEMENT
Coinsilium is now in its fourth year of operations as a listed company and
the Directors remain focused on delivering its vision of providing retail
investors with exposure to a diverse range of high-quality, extensively
profiled opportunities in the fast evolving Blockchain technology sector.
The start of 2019 was very much a continuation of the end of 2018, with the
Bitcoin price at the start of the period at US$3,730, marking around an 80%
fall from its November 2017 peak of just under US$20,000.
Whilst the Company's focus remains predominantly on the underlying
blockchain technology, the prevailing real-time cryptocurrency price-feed
still demonstrates a persistent tendency of dictating global market
conditions and sentiment in the sector, for better or worse. Consequently,
our operations during the first quarter of the period, particularly with
regard to our token sale advisory services, were somewhat constrained by
less than favourable global market conditions.
By March 2019, the crypto price environment had markedly improved and by
June 2019, Bitcoin was once again trading at over US$11,000, marking a 300%
rise from the start of the period. With the recovery in cryptocurrency
prices, market conditions also started to improve as we saw a resurgence in
demand for our token sale advisory services towards the end of the period,
with a more pronounced escalation in momentum post period end.
There are many lessons to be learned from our experience as advisors in the
token economy space where our activities first commenced in 2017. The
initial wave of ICO's or 'token sales', drove a high demand for our services
more or less from a standing start and we were fortunate enough to be able
to capitalise on this throughout 2017 and much of 2018.
During this time, we have supported blockchain startups such as Indorse and
Blox (formally Coindash) through their ICO process, whilst obtaining
material equity stakes in those two companies, which are now rapidly
developing into highly promising, revenue generative businesses. We have
also been contracted for major advisory roles with some of the largest
base-layer blockchain protocols such as RSK, ICON, HDAC and Fantom.
Whilst our successful achievements as advisors have helped build a strong
global reputation for the Coinsilium brand, our token sale advisory work
also presented some material challenges along the way, in terms of scale and
sustainability. In addition, there has been an ongoing need to actively
manage the wild swings in cryptocurrency prices, which have historically
been the main denominator for much of our advisory services revenue.
During the period, we also relocated our advisory services division from
London to Gibraltar where we have now established a wholly owned operating
subsidiary, Coinsilium (Gibraltar) Limited ('CGL'). Gibraltar remains at the
forefront of regulatory innovation in the global blockchain and distributed
ledger technology ('DLT') industry with many of the largest crypto
exchanges, such as Huobi, LMAX and eToroX creating a presence there under
Gibraltar's unique DLT regulatory framework. The jurisdiction is also
attracting numerous other fintech businesses including multi-currency
digital wallet providers, e-money institutions and innovative payment
services providers.
In this regard, the move of our core operations to Gibraltar has presented
CGL with a broader opportunity to expand the scope of our commercial
activities beyond the original token sale advisory model to now include more
strategic advisory services such as education and business support services
to the industry, where we are already pursuing some compelling potentially
revenue generative venture opportunities, which will complement our token
sale advisory work.
An example of this can be seen in the post period announcement of 11 July
2019 where we reported that CGL has joined forces with StartupToken and IOV
Labs to accelerate the Southeast Asian adoption of RSK Smart Contract and
RSK Infrastructure Framework (RIF OS) Blockchain solutions. RSK was one of
Coinsilium's most successful early stage investments and since its
successfully completed private token sale, together with the acquisition of
RSK by IOV Labs (formerly RIF Labs) as announced on 19 November 2018, RSK
has been hard at work building out its infrastructure to support global
adoption of the RIF token, which currently sits as the 75th largest crypto
currency globally by market cap. With this agreement, we believe that there
is now a significant opportunity for Coinsilium to play an even greater role
in RSK's future success by providing support and community development
services in RSK's targeted regions for adoption, where Coinsilium also has a
strong presence, particularly in Southeast Asia.
Another significant highlight during the period was the Company's 19 June
2019 announcement reporting the investment in Indorse by Brand Capital, the
strategic investment arm of India's largest media house, The Times Group.
The initial investment of USD $2m, via a convertible note, was set at a
valuation of USD $15 million, representing an uplift of 350% from
Coinsilium's initial investment two years previously. Coinsilium maintains a
10% equity stake in Indorse and was its first investor at the seed stage. It
is therefore most gratifying to see its potential now starting to be
realised and we fully expect Indorse's rapid growth trajectory to soon be
reflected by a material valuation uplift within our portfolio of
investments. Shareholders are invited to review the post period Operational
update from Indorse announced on 2 September 2019.
Malcolm Palle
Executive Chairman
CONSOLIDATED STATEMENT OF TOTAL
COMPREHENSIVE INCOME
Note 6 months to 30 June 6 months to
2019 30 June
Unaudited 2018
Unaudited
GBP GBP
Revenue from contracts 108,967 1,333,515
with customers
Cost of sales (55,314) (12,423)
Gross Profit 53,653 1,321,092
Administrative expenses (368,560) (550,341)
Reversal of impairment to 116,267 -
other current assets
Net fair value 440,922 (216,451)
gains/(losses) on
financial assets at fair
value through profit or
loss
Profit/(Loss) before 242,282 554,301
Income Tax
Financial Income 375 375
Financial Expenses (4,870) (71)
Profit/(Loss) for the 237,787 554,605
Period from Continuing
Operations Attributable
to Owners of the Parent
___________ ___________
Other Comprehensive
Income
Change in fair value of - (339,815)
other current assets
Total Comprehensive 237,787 214,789
Income for the Period,
Attributable to Owners of
the Parent
Earnings per Share
Basic and diluted 4 0.002 0.005
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earnings per share
attributable to equity
holders of the Parent
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
Note As at Restated as at As at
30 June 2019 30 June 2018
31 December
2018
Unaudited Unaudited Audited
GBP GBP GBP
Assets
Non-Current
Assets
Intangible 3,720 6,020 3,720
assets
Property, plant 430 748 589
and equipment
Financial assets 5 1,695,912 1,372,318 1,362,200
at fair value
through profit
or loss
1,700,062 1,379,086 1,366,509
Current Assets
Trade and other 297,891 957,320 240,067
receivables
Cash and cash 475,340 747,422 592,171
equivalents
Other current 164,945 728,448 251,810
assets
938,175 2,433,190 1,084,048
Total Assets 2,638,237 3,812,276 2,450,557
Equity
Attributable to
Owners of the
Parent
Share capital - - -
Share premium 6,369,974 5,995,224 6,369,974
Treasury Shares (281,003) (250,100) (273,875)
Share option 101,304 81,275 101,304
reserve
Other reserve - 173,575 -
Retained losses (3,602,398) (2,303,545) (3,840,186)
Total Equity 2,587,877 3,696,428 2,357,217
Attributable to
Owners of the
Parent
Current
Liabilities
Trade and other 50,360 115,848 93,340
payables
Total Equity and 2,638,237 3,812,276 2,450,557
Liabilities
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
Attributable to equity shareholders
Share Share Treasury Share Available Retained Total
Shares Optio for Sale losses
n Reserve
Reser
Capital Premium ve
GBP GBP GBP GBP GBP GBP GBP
Balance as at - 5,945,2 (78,750) 81,27 687,706 (3,032,4 3,062
31 December 25 5 66) ,989
2017 as
originally
presented
Change in - - - - (174,316) 174,316 -
accounting
policies
Restated as - 5,945,2 (78,750) 81,27 513,390 (2,858,1 3,062
at 1 January 25 5 50) ,989
2018
Profit for - - - - - 554,605 554,6
the period 05
Change in - - - - (339,815) - (339,
fair value of 815)
available for
sale
financial
assets
Total - - - - (339,815) 554,605 214,7
comprehensive 89
income
Purchase of - - (171,350 - - - (171,
treasury ) 350)
shares
Issue of - 50,000 - - - - 50,00
shares 0
Balance as at - 5,995,2 (250,100 81,27 173,575 (2,303,5 3,696
30 June 2018 24 ) 5 45) ,429
Loss for the - - - - - (1,536,6 (1,53
period 41) 6,641
)
Change in - - - - (173,575) (173,
fair value of 575)
available for
sale
financial
assets
Total - - - - (173,575) (1,536,6 (1,71
comprehensive 41) 0,216
income )
Issue of - 384,000 - - - - 384,0
shares 00
Share issue (9,250) - - - - (9,25
costs 0)
Purchase/sale - - (23,775) - - - (23,7
of treasury 75)
shares
Share option - - - 20,02 - - 20,02
charge 9 9
Balance as at - 6,369,9 (273,875 101,3 - (3,840,1 (2,35
1 January 74 ) 04 86) 7,217
2019 )
Profit for - - - - - 237,787 237,7
the period 87
Total - - - - - 237,787 237,7
comprehensive 87
income
Purchase of - - (7,128) - - (7,12
treasury 8)
shares
Balance as at - 6,369,9 (281,003 101,3 - (3,602,3 2,587
30 June 2019 74 ) 04 99) ,876
CONSOLIDATED STATEMENT OF
CASH FLOWS
6 months to 6 months Year to 31
December
30 June to 30 June
2019 2018 2018
Unaudited Unaudited Audited
GBP GBP GBP
Cash flows from operating
activities
Profit/(Loss) before 237,788 554,605 (982,036)
taxation
Adjustments for:
Finance costs 4,902 - 15,009
Depreciation 159 159 2,618
Finance income (375) - (968)
Impairment of other - - 973,147
current assets
Net fair value (333,712) - 188,780
gains/(losses) on
financial assets at fair
value through profit or
loss
Non-cash revenue - - (1,085,852)
Share based payment - - 86,904
(Increase)/decrease in (57,824) (518,302) 234,953
trade and other
receivables
(Decrease)/increase in (42,980) 28,436 5,928
trade and other payables
Net cash generated (561,517)
from/(used in) operating
activities
(192,042) 64,898
Cash flows from investing
activities
Interest received 375 - 968
Purchase of available for - (292,961) -
sale financial assets
(395,076)
Purchase of financial
assets at fair value
through profit and loss
Purchase of other current 86,865 (75,953) -
Assets
Decrease/(Increase) in 116,535 (37,277)
other financial assets
Revaluation of available - (339,815) -
for sale financial assets
39,987
Proceeds from disposal of
financial assets at fair
value through profit or
loss
Net cash (used
in)/generated from
investing activities
87,240 (592,195) (391,398)
Cash flows from financing
activities
Finance costs (4,902) - (15,009)
Purchase of treasury (7,128) (171,350) (204,125)
shares
Sale of treasury shares - - 9,000
Net cash proceeds from - 50,000 321,875
issue of shares
Net cash (used
in)/generated from
financing activities
(12,030) (121,350) 111,741
Net increase/(decrease) (116,831) (648,648) (803,898)
in cash and cash
equivalents
Cash and cash equivalents 592,171 1,396,070 1,396,070
at the beginning of the
period/year
Cash and Cash Equivalents
at end of Period/Year
475,340 747,422 592,171
NOTES TO THE INTERIM FINANCIAL
STATEMENTS
1. Basis of Preparation
The consolidated interim financial statements should be read in conjunction
with the annual financial statements for the year ended 31 December 2018,
which have been prepared in accordance with International Financial
Reporting Standards (IFRS) as adopted by the European Union. As permitted,
the consolidated interim financial statements have not been prepared in
accordance with International Accounting Standard 34 'Interim Financial
Reporting'.
2. Financial Information
The consolidated interim financial statements do not constitute statutory
accounts. They have been prepared on a going concern basis in accordance
with the recognition and measurement criteria of International Financial
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Reporting Standards (IFRS) as adopted by the European Union. Except as
described below, the accounting policies applied in preparing the interim
consolidated financial statements are consistent with those that have been
adopted in the Group's 2018 audited financial statements. Statutory
financial statements for the year ended 31 December 2018 were approved by
the Board of Directors on 31 May 2019. The report of the auditors on those
financial statements was unqualified.
Going concern
The Directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable future.
For this reason, the Directors continue to adopt the going concern basis in
preparing the Financial Statements.
Risks and uncertainties
The key risks that could affect the Group's short and medium term
performance, and the factors that mitigate those risks have not
substantially changed from those set out in the Group's 2018 Annual Report
and Financial Statements, a copy of which is available on the Company's
website: www.coinsilium.com [1]. The Group's key financial risks are
liquidity, equity securities price risk and foreign exchange movements.
Accounting policies
The preparation of 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 are set out in note 4 of the Group's 2018 Annual Report and
Financial Statements. The nature and amounts of such estimates have not
changed significantly during the interim period. The consolidated interim
financial statements have been prepared on the historical cost basis, except
for the measurement to fair value of certain financial instruments.
Changes in accounting policies and disclosures
There are no new and amended IFRS standards that are effective for the first
time for the financial year commencing 1 January 2019 that would be expected
to have a material impact on the Group.
The consolidated interim financial statements for the 6 months ended 30 June
2019 and for the 6 months period ended 30 June 2018 have not been reviewed
or audited.
3. Directors Remuneration
Directors of the Company received total remuneration of GBP130,000 for the 6
months ended 30 June 2019 (30 June 2018: GBP138,000).
4. Earnings Per Share
Basic earnings per share is calculated by dividing the profit or loss
attributable to equity shareholders by the weighted average number of
ordinary shares outstanding during the period.
Weighted As at 30 June As at 30 June
average 2019 2018
number of
Shares
Profit per Profit per
Share Share
GBP No. GBP GBP
Basic EPS
Profit 237,787 132,664,235 0.002 0.005
attributable
to
shareholders
The Company had no dilutive potential shares during any period.
5. Financial Assets at fair value through profit and loss
At 30 June 2019, the Company owns unlisted shares in:
· Factom Inc., a company incorporated in the United States;
· Neuroware.io Inc., a company incorporated in the United States;
· Helperbit s.r.l, a company incorporated in Italy;
· StartupToken Limited, a company incorporated in Gibraltar;
· Elevate Limited, a company incorporated in Gibraltar;
· Bundle Network Limited, a company incorporated in Malta; and
· Indorse Pte. Ltd., a company incorporated in Singapore.
6. Dividends
The Directors do not recommend the payment of a dividend.
7. Changes in accounting policies
IFRS 9 was adopted on 1 January 2018 without restating comparative
information. The reclassifications arising were therefore not reflected in
the Statement of Financial Position as at 31 December 2017, but recognised
in the opening Statement of Financial Position on 1 January 2018.
8) Approval of Interim Financial Statements
The interim financial statements were approved by the Board of Directors on
26 September 2019.
ISIN: VGG225641015
Category Code: MSCH
TIDM: COIN
Sequence No.: 21503
EQS News ID: 881181
End of Announcement EQS News Service
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