DJ Coinsilium Group Limited: UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2022
Coinsilium Group Limited (COIN) Coinsilium Group Limited: UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2022 30-Sep-2022 / 08:00 GMT/BST Dissemination of a Regulatory Announcement that contains inside information in accordance with the Market Abuse Regulation (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
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COINSILIUM GROUP LIMITED
("Coinsilium" or the "Company")
30 September 2022
UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2022
Coinsilium Group Limited, the Blockchain, DeFi and Crypto Finance venture operator, is pleased to announce its unaudited consolidated interim financial statements for the six months ended 30 June 2022.
Financial Highlights:
-- Revenue for the period increased to GBP138,888 (H1 2021: GBP79,677).
-- Loss for the period from continuing operations increased to GBP1,284,830 (H1 2021: profit of GBP326,608).
-- Loss per share of 0.7353 pence (H1 2021: Earnings per share of 0.2038 pence).
-- As at 30 June 2022, cash and cash equivalents, amounted to GBP1,143,906 (FY 2021: GBP1,513,892).
-- Net fair value gain on financial assets of GBP162,784 as at 30 June 2022 (H1 2021: GBP792,516).
-- Available for sale financial assets at fair value through profit or loss increased to GBP2.39m at 30 June 2022 (FY 2021: GBP2.24m).
-- Total other current assets (Cryptocurrencies, Tokens and right to future tokens) held at GBP1,311,630 as at 30 June 2022 (FY2021: GBP2,221,623).
-- No dividends were paid or recommended to be paid during the period.
Corporate Highlights:
-- Coinsilium appointed as advisor to lifestyle fashion brand company Blvck SRL ("Blvck Paris") for the successful launch of its 'Blvck Genesis' NFT (Non-Fungible Token) collection.
-- Simple Agreement for Future Tokens ("SAFT") signed with Layer3 FinTech Ltd to purchase USD200,000 of YELLOW tokens, the native token of Yellow Network.
-- Coinsilium appointed as advisor to Switzerland-registered Silta Finance AG ("Silta") and Early Contribution Agreement ("ECA") signed with Silta to purchase USD75,000 of future SILTA tokens, the utility token of the Silta ecosystem.
-- Appointment as advisors to Delaware-registered GGs.io Company ("GGs.io") Simple Agreement for Future Tokens ("SAFT") signed with GGs.io to purchase USD100,000 of future GGs.io tokens, the utility token of the GGs.io gaming ecosystem.
Post Period End Highlights:
. Coinsilium appointed as advisor to Metalinq Labs Inc ("Metalinq Labs") Token Purchase Agreement signed for USD200,000 of future Metalinq tokens ("USDMLINQ"), the utility token of Metalinq, a next generation Layer 3 protocol solution enabling interoperability between metaverses.
. Metalinq and Blvck Paris announce collaboration to launch first-ever interoperable Metaverse wearable collection using the Metalinq Protocol.
Commenting on the results, Malcolm Palle, Chairman of Coinsilium, said:
"The Company ended the period under review in a healthy cash position, with over GBP1.1m cash at bank and approx. GBP1.3m in crypto treasury reserves (predominantly denominated in BTC and ETH). However, the crypto markets have remained highly volatile throughout the reporting period and there can be no certainty that crypto prices will not go lower from here.
Between the previous reporting date of 31 December 2021 and the interim reporting date of 30 June 2022, the price of Bitcoin and Ethereum declined by some 60% and 72.8% respectively, which had a material impact on the valuation of our crypto portfolio when the 'snapshot' was taken on our current reporting date of 30 June 2022. This has therefore been a material contributing factor for the losses reported for the period.
In contrast, the first six months of the current financial year saw the Company making solid operational progress across its investment and advisory activities. In this respect, several significant announcements were made during the period namely: Blvck Paris (advisory agreement), Yellow Network (SAFT or Simple Agreement for Future Tokens), Silta Finance (SAFT and advisory agreement), GGS.io (Early Contribution Agreement and advisory agreement), and post period in July, Metalinq (Token Purchase and advisory agreement).
As we stated in the 'Outlook' section of our last Annual Report, released just three months ago, our experience in this industry has taught us to be cautious and the retrenchment and rationalisation that we expected within the industry is now starting to play out.
Encouragingly, we are also seeing a tremendous level of motivation, stoic resilience and professionalism across the growing pipeline of talented project teams we are currently invested in and working with. This provides us with a high level of confidence in their ability to deliver on their ambitious objectives and return long term value to Coinsilium and our shareholders, irrespective of current market conditions. The Benjamin Franklin quote "Out of adversity, comes opportunity" certainly comes to mind.
Going forward, our commercial focus will remain on opportunities in Decentralised Finance, NFTs and increasingly, Web3 and Metaverse, though as previously stated, it is important to recognise the many challenges still facing this young emerging technology space, not least of which being the evolving global regulatory landscape.
We will therefore continue to manage our resources pragmatically, as we expect to continue to steadily grow our portfolio of advisory clients over the remainder of this year and well into 2023, particularly in the NFT, Metaverse and Web3 space, whilst we will be selectively adding to our portfolio of investments in the light of current market conditions, when favourable terms present themselves."
The Directors of Coinsilium Group Limited take responsibility for this announcement.
For further information, please contact:
Coinsilium Group Limited +44 7785 381 089 Malcolm Palle, Executive Chairman +350 2000 8223 Eddy Travia, CEO www.coinsilium.com Peterhouse Capital Limited Guy Miller / Mark Anwyl +44 (0) 207 469 0930 (NEX Exchange Corporate Adviser) SI Capital Limited Nick Emerson +44 (0) 1483 413 500 (Broker)
DIRECTORS' STATEMENT
The Company ended the period under review in a healthy cash position, with over GBP1.1m cash at bank and approx. GBP1.3m in crypto treasury reserves (predominantly denominated in BTC and ETH). However, the crypto markets have remained highly volatile throughout the reporting period and there can be no certainty that crypto prices will not go lower from here.
The first six months of the current financial year saw the Company making solid operational progress across its investment and advisory activities. In this respect, several significant announcements were made during the period, namely: Blvck Paris (advisory agreement), Yellow Network (SAFT or Simple Agreement for Future Tokens), Silta Finance (SAFT and advisory agreement), GGS.io (Early Contribution Agreement and advisory agreement), and post period in July, Metalinq (Token Purchase and advisory agreement). However, these positive events have been largely overshadowed by the prevailing global crypto market conditions with massive price volatility seen throughout the reporting period culminating in a major collapse across the board in the crypto markets from May through to the end of June.
Between the previous reporting date of 31 December 2021 and the interim reporting date of 30 June 2022, the price of Bitcoin and Ethereum declined by some 60% and 72.8% respectively, which had a material impact on the valuation of our crypto portfolio when the 'snapshot' was taken on our current reporting date of 30 June 2022. This has therefore been a material contributing factor for the losses reported for the period.
The key catalyst for the May-June cryptocurrency market crash can be seen as the collapse of the Terra Labs ecosystem. Terra Labs had created 'UST', an algorithmic stable coin pegged to the US dollar, which lost its peg in a couple of days in early May 2022. This flash 'de-peg' took many UST holders by surprise - in aggregate they were staking billions of dollars' worth of UST (when 1 USD was equal to 1 UST). It also caused the fast collapse of the UST sister token, LUNA, whose market capitalisation went from USD40 billion in early May 2022 to around USD1.5 billion today (the LUNA token price went from USD120 in April 2022 to USD0.00028 as of 15 September 2022). It first affected the Terra Labs ecosystem, with its applications losing approximately USD28 billion in market capitalisation, with the impact then spreading into many major crypto funds and investors who were holding substantial amounts of UST and/or LUNA tokens. One of those funds, Three Arrows Capital, a backer of Terra Labs, was holding hundreds of millions of dollars in cryptocurrency for other funds, exchanges and blockchain companies. The sudden UST and LUNA token crash prompted Three Arrows Capital to take even riskier positions in the crypto market which proved fatal for the whole fund, which is now in liquidation proceedings. The contagion also caused multiple bankruptcies and extraordinary losses for certain private and public companies who were providing unsecured loans to third parties such as Genesis Trading, Voyager Digital, BlockFi and Blockchain.com.
It is important to note that Coinsilium does not use leverage nor lends its cryptocurrency holdings to third parties and as such had no direct or indirect exposure to any of these market casualties.
It is also likely that the crypto price downward trend was accentuated by overall geopolitical and macro-economic events including the Russia-Ukraine war, its impact on energy prices and the major central banks increasing interest rates at a fast pace due to the double-digit inflation hitting major economies such as the US and the UK.
The significance of this recent market crash cannot be understated and many in the industry now consider this to have been as seminal an event and cleansing exercise as that of the Dot.com crash of 1999. If this analogy proves to be correct, then we are likely to be moving towards a new less volatile maturation phase in the industry, which bodes well for established, well-connected investors and advisors such as Coinsilium with experience in the industry going back to its earliest days. As the saying goes, "what doesn't kill you, makes you stronger!"
New Advisory and Investment Agreements
On 18 February 2022 we announced that Coinsilium had been appointed as advisor to global lifestyle fashion brand Blvck Paris for the launch of its 'Blvck Genesis' NFT collection. Under the agreement Coinsilium provided expert advice in respect of the NFT market and the promotion of their NFT collection. The collection features 9,999 unique NFTs, each design element has been crafted by Blvck Paris founder, Julian O'hayon, with the avatars created through the random combination of these graphical elements through a Blvck randomiser. The collection successfully sold out within one day of the launch.
On 21 April 2022 we announced that Coinsilium had entered a Simple Agreement for Future Tokens ("SAFT") with Layer3 FinTech Ltd to purchase USD200,000 of YELLOW tokens, the native token of Yellow Network. Yellow Network is a highly ambitious venture and potential game changer, headed up by a very capable and impressive team of experienced trading software and blockchain industry veterans which aims to transform the current cryptocurrency exchange trading landscape by solving the problem of fragmented liquidity and enabling high frequency crypto-trading for the first time. Post period, in a private token sale that took place on September 1st in collaboration with Launchblock, the USDYELLOW token allocation sold out in under a minute where 1,388,888 USDYELLOW tokens were sold at a price of USD0.036 each. Whilst at this stage we cannot confirm a price for tokens to be granted to Coinsilium under the SAFT allocation, we can provide an indication of the range of the discount Coinsilium will benefit from compared to the LaunchBlock private sale price achieved of USD0.036. That discount range is between approximately 33.33% to 66.66%. Further information about Yellow Network can be found on their website https://www.yellow.org/
On 5 May 2022 we announced that Coinsilium had been appointment as advisor to Switzerland-registered Silta Finance AG ("Silta") and that the Company had entered into an Early Contribution Agreement ("ECA") with Silta to purchase USD75,000 of future SILTA tokens, the utility token of the Silta ecosystem. Silta is another exciting and highly ambitious project with the objective of building a bridge connecting DeFi protocols across multiple chains to real world assets (RWA) infrastructure. Silta aims to provide developers of real-world assets with a new and easier line of credit for funding impact-conscious infrastructure. Coinsilium provides strategic advisory services to Silta in relation to market trends, innovations, and new developments in DeFi and blockchain-powered project finance. Further information can be found on the Silta Website https://silta.finance/
On 22 June 2022 we announced Coinsilium's appointment as advisor to Delaware-registered Company GGs.io ("GGs.io") and that it has entered into a Simple Agreement for Future Tokens ("SAFT") with GGS.io, to purchase USD100,000 of future GGs.io tokens, the utility token of the GGs.io gaming ecosystem. GGs.io aims to build Latin America's first 'Play and Earn' blockchain gaming hub while promoting Web3 education and social mobility. The GGs.io founding team members have considerable experience in this space having contributed to the build of successful e-sports ventures in the Latin-American (Latam) markets, launching and operating successful communities and events for brands such as Razer, Red Bull, Claro Gaming, ViacomCBS, Supercell, among others over the past 5 years.
GGs.io has been accepted as the first gaming project to join the Origami program, an accelerator for Decentralised Autonomous Organisations ("DAOs") operated and founded by Y Combinator alumni and founding members of Orange DAO. Other early investors in GGs.io alongside Coinsilium include Boost VC an early-stage VC firm in California founded by Adam Draper - and Ripio Ventures, the venture arm of Ripio the access gateway to the new digital economy in Latin America.
Play-to-earn has now evolved into 'Play and Earn' where the game is not seen as a 'job' but as an activity which is fun first, and potentially lucrative second. With the inclusion of blockchain technology, Web3 games now use NFTs as leverage and provide true ownership of in-game assets, something missing from Web2 video games.
Post Period
On 25 July 2022 we announced Coinsilium's appointment as advisor to Metalinq Labs Inc ("Metalinq Labs") and a Token Purchase Agreement to purchase USD200,000 of future Metalinq tokens ("USDMLINQ"), the utility token of Metalinq, a next generation metaverse interoperability Layer3 protocol, backed by the founding team behind portfolio company Indorse Pte. Ltd. ("Indorse") enabling interoperability between metaverses. Under the terms of the Token Purchase Agreement, Coinsilium will receive USD200,000 in value of USDMLINQ digital tokens. The tokens will vest over a period of time following the USDMLINQ token generating event ("TGE").
Metalinq is the first Layer 3 protocol built to enable interoperability between Metaverses. The Metalinq protocol will allow projects to launch wearable (NFT) collections across multiple metaverses simultaneously. For the first time, users will be able to purchase truly interoperable wearables. The protocol is built with a focus on interoperability and with the objective to remain blockchain agnostic; this will allow users to transfer their digital assets across multiple metaverses and applications. NFT traders will be able to track their wearables and assets across all platforms, chains and wallets. The interoperability is encoded into the 'MetaNFTs', including the 3D file formats and ownership details specific to each metaverse.
Advisory services
Coinsilium has agreed to provide strategic advisory services to Metalinq Labs over a period of time up to and beyond the USDMLINQ's TGE. The services will include strategic advice on token economics, strategic development, and partnerships.
Metalinq Token Airdrop for USDIND Holders
Existing Indorse USDIND token holders, including Coinsilium, will be eligible to receive USDMLINQ tokens on a 1-1 basis, subject to certain terms, based on their USDIND token balance. Coinsilium currently holds 5,349,895 USDIND Tokens. A token airdrop is planned to be held in accordance with certain criteria to be announced by Metalinq and Indorse subsequent to the planned token launch in 2023
Further details can be found on the Metalinq website https://metalinq.io/
Partnerships and Agreements
IOV Labs Asia Joint Venture
In July 2020, the Company announced the execution of a Joint Venture Agreement ("JVA") between IOV Labs and Coinsilium to form a Joint Venture Company ("JVC") in Singapore with the aim to promote, distribute and commercialise IOV's products, services, and technologies, principally in the Asian markets. As stated in our latest Annual Report, the Covid19-induced strict and broad travel restrictions imposed in Asia, and more particularly in Singapore, have till now, prevented the JVC from becoming fully operational as initially planned. During the intervening period, the parties have been in the process of re-evaluating the original scope of the JV and also considering alternative business models that would better reflect the changed landscape since Covid19 and the parties' individual and mutual strategic and commercial imperatives. Whilst IOV Labs contribution to the JVC comes by way of a loan and the supply of product, services and technologies, Coinsilium's contribution has been met by making a considerable proportion of its CEO, Eddy Travia's time available to the JVC and by his relocation to Singapore to provide in situ advisory, support, and management services. The operations of the JVC are currently funded through a loan agreement between IOV Labs and IOV Labs Asia (the JVC) with repayment terms coming into effect in 2023. Coinsilium is not a party to the loan agreement and there are no obligations upon Coinsilium for repayment of the loan made to the JVC. A further announcement will be made to the market once the re-evaluation process has been concluded and its outcome is known.
Nifty Labs
In March 2021, the Company announced its first new venture in the NFT space, under a partnership with portfolio company Indorse, to establish Nifty Labs, an NFT development studio in Gibraltar. Later the same month it announced that Nifty Labs had commissioned the build of its first commercial product, an NFT Marketplace software solution, namely the 'Nifty Marketplace', which was delivered in public beta format on the RSK Testnet by year-end, on time and within budget.
Nifty Labs aims to commercialise the Nifty Marketplace as a 'white labelled' Software as a Service (SaaS) business solution, targeting third-party brands, artists, and other creatives, and continues to work with its legal team and commercial advisors in the preparation of the commercial licence agreements and supporting documentation whilst we continue to address the Gibraltar-specific regulatory considerations. This process has taken somewhat longer than initially anticipated, largely due to the complexities around the evolving regulatory landscape.
Outlook
The outlook remains generally consistent with that provided in the Company's Annual Report, released just three months ago. As stated then, our many years of experience in this industry has taught us to be cautious, particularly during times of extreme market exuberance. Following the recent market correction, a tidal wave of retrenchment and rationalisation has hit the broader industry and in light of this, we remain cautious in our outlook for the sector, at least in the medium term.
Encouragingly, we are also seeing a tremendous level of motivation, stoic resilience, and professionalism across the growing pipeline of talented project teams we are currently invested in and working with. This provides us with a high level of confidence in their ability to deliver on their ambitious objectives and return long term value to Coinsilium and our shareholders, irrespective of current market conditions. The Benjamin Franklin quote "Out of adversity, comes opportunity" certainly comes to mind.
Going forward, our commercial focus will remain on Decentralised Finance, NFTs and increasingly, Web3 and metaverse opportunities, and as previously stated, it is important to recognise the many challenges still facing this young emerging technology space, not least of which being the evolving global regulatory landscape.
Having managed our resources pragmatically throughout the period, we are confident that Coinsilium will continue to remain on the right side of this difficult market and whilst current market conditions prevail, this also puts us in a strong position to use these conditions opportunistically to our best advantage.
We expect to continue to steadily grow our portfolio of advisory clients over the remainder of this year and well into 2023, particularly in the NFT, metaverse and Web3 space, whilst we will be selectively adding to our portfolio of investments in the light of current market conditions, when favourable terms present themselves.
Finally, the Board would like to thank our valued shareholders, partners and team members for their continued support, and we look forward to continuing to provide the market with regular exciting progress updates for the remainder of the period and beyond.
Financial Review
In the period under review revenue for the six months ended 30 June 2022 was GBP138,888 compared to GBP79,677 for the six months ended 30 June 2021.
The Company generated a loss for the six months ended 30 June 2022 from continuing operations of GBP1,284,830, which was compared to a profit of GBP326,608 for the six months ended 30 June 2021.
The earnings per share was a loss of 0.7353 pence for the six months ended 30 June 2022 which was compared to a profit of 0.2038 pence per share for the six months ended 30 June 2021.
The financial assets at fair value through profit or loss increased to GBP2.39m at 30 June 2022 compared with GBP2.24m at 31 December 2021.
The total other current assets, which is a combination of cryptocurrencies, tokens, and the right to receive tokens at a future date, amounted to GBP1,311,630 at 30 June 2022, which was a decrease from GBP2,221,623 on 31 December 2021.
Cash and cash equivalents amounted to GBP1,143,906 as at 30 June 2022, compared to GBP1,513,892 as at 31 December 2021.
Significant Developments for Coinsilium's Investment Portfolio Companies:
Greengage Global Holdings Ltd
On 20 August 2021, Coinsilium Group Limited signed a letter of intent with UK-registered Greengage Global Holding Ltd ("Greengage") to enable Seedcoin Limited ("Seedcoin") to purchase up to 15,000 A ordinary shares in the capital of Greengage (the "A Shares") at a price of GBP20 per share from existing shareholders (for GBP300,000 in total) and (ii) subscribe for up to GBP200,000 of convertible loan notes (the "Loan Notes") (the "Transaction"), totalling GBP500,000 of initial investment.
On 19 April 2022, Greengage announced its acquisition of Silver Lined Solutions Limited (SLS). SLS is a highly rated Salesforce consultancy in the financial services space and has been actively engaged in building a differentiated core IT architecture for Greengage. Silver Lined Solutions has been rebranded as Greengage Solutions Ltd (GGS).
Greengage Strategy Update
Greengage intends to serve two significant underserved client sectors:
. Crypto Asset companies: Cryptoasset companies struggle to find access to mainstream banking services. The estimated size of fiat deposits in the crypto asset sector is USD30 - USD40 billion with only a handful of banks actively supporting this sector.
. UK SME market: There are 5.9 million SMEs in the UK with GBP2.5 trillion annual turnover. Yet there is a GBP22 billion funding gap for SMEs in the UK.
Greengage will initially focus on offering e-money banking services (payments and cards) accounts to largely unbanked crypto asset companies. Thereafter, Greengage will expand its services by providing fiat loans to underserved SMEs. In the long-term, Greengage intends to expand its product offering to include the structuring of digital products such as digital debt and equity.
In the time since Greengage's incorporation in March 2018, Greengage has built an extensive network and market presence in the crypto asset sector. To further build this network and also to achieve initial revenues as Greengage builds its business, Greengage provides the following activities:
. E-money banking services: Launching soon, Greengage will provide transactional payments and cards solutions for crypto companies, SMEs, and HNW individuals.
. Technology services: Greengage acquired Greengage Solutions Limited (previously Silver Lined Solutions Limited) which is a well-recognised financial services technology consultancy primarily offering Salesforce-native solutions. This business is shortly launching Software-as-a-Service propositions derived from Greengage's own nascent core banking technology systems.
. Crypto lending introduction: Greengage has several partners in the traditional financial services space which offer wholesale Business to Business "B2B" lending against cryptoasset exchange tokens. Greengage refers clients or contacts in its network to these institutions.
. Lending to crypto miners: Greengage facilitates lending to crypto miners.
Investment value equivalent in GBP as at 30 June 2022: GBP500,000
(Investment value in GBP as at 31 December 2021: GBP500,000)
Blox Staking / SSV Network
Blox Staking is the world's first non-custodial staking platform for Ethereum and decentralised SSV based staking pools.
In February 2022 it was announced that SSV Network (the decentralised protocol) had raised USD10m from reputable crypto companies such as Coinbase, Lukka, OKX and Digital Currency Group.
At the time, media reported that SSV Network's TestNet touted 2,661 operators and 7,954 validators with 254,528 ETH staked.
It is important to note that these companies did not acquire shares in Coin-Dash Limited, nor entered the cap table of Coin-Dash Limited as shareholders but acquired USDSSV tokens at an undisclosed price.
CDT tokens were rebranded as SSV tokens and swapped at a ratio of 100 CDT for 1 SSV in October 2021.
USDSSV tokens were valued at USD4.23 as of 30 June 2022 (SSV tokens are not considered in the Company's valuation method).
Investment value equivalent in GBP as at 30 June 2022: GBP185,032 (equivalent to USD225,000) (Investment value in GBP as at 31 December 2021: GBP166,798)
Elevate Health
During the period under review the Elevate team has been working to create an updated Elevate reward token model in preparation for an intended IDO (Initial Dex Offer) before the end of the year.
Post Period
The Elevate team has informed the Company that the token model is complete and work on an updated Whitepaper is now in process. In parallel, a review of suitable Decentralised Exchanges (DEX's) for the IDO is also underway. Upon receipt of confirmation that the IDO will proceed, it is intended that a proportion of new Elevate platform tokens will be allocated to all founder investors. At this point it is also expected that the Gibraltar company, Elevate Limited, will be wound up and the value of Coinsilium's stake in the Elevate project will be represented entirely through its holdings of the new to be issued Elevate platform tokens.
Investment value equivalent in GBP as at 30 June 2022: GBP82,236 (Investment value equivalent in GBP as of 31 December 2021: GBP74,132)
Indorse
On 27 January 2022 Coinsilium Group's CEO Eddy Travia, together with Gaurang Torvekar, CEO of Indorse co presented an online web event entitled "The Metaverse, Play to Earn & BlockBots" hosted by StartupGrind Gibraltar. This showcase and educational session was designed to provide attendees with an entry level understanding of these emerging technology applications.
The event was streamed through the StartupGrind platform and simultaneously in the Metaverse, at the Indorse virtual headquarters in Voxels.
On 19 April 2022, Indorse announced the launch of the Public Alpha version of its BlockBots NFT Play-and-Earn ("P& E") game called "Block Bouts" with a prize pool of USD33,000 and various BlockBot NFTs.
On 13 May 2022, Indorse announced the successful completion of the 2-week Public Alpha of the BlockBots NFT game with more than 360,000 gameplays during the period.
On 17 May 2022, Indorse announced the V1 of the BlockBots P2E game to be launched in June and through which players can stake and earn IND tokens and PowerUps.
Post Period
On 25 July 2022, Metalinq Labs announced the launch of Metalinq, the Metaverse interoperability Layer3 protocol, backed by the founding team behind portfolio company Indorse Pte. Ltd. ("Indorse") and the BlockBots NFT-based Play-to-earn game. At the same time Coinsilium Group announced its appointment as advisor to Metalinq Labs Inc ("Metalinq Labs") and that it has entered into a Token Purchase Agreement to purchase USD200,000 of future Metalinq tokens ("USDMLINQ"), the utility token of Metalinq, a next generation Layer 3 protocol solution enabling interoperability between metaverses.
Coinsilium will provide strategic advisory services to Metalinq covering token economics, strategic development, and partnerships. Existing Indorse USDIND token holders, including Coinsilium, will be eligible to receive USDMLINQ tokens on a 1 - 1 basis, subject to certain terms, based on their USDIND token balance. Coinsilium currently holds 5,349,895 USDIND Tokens.
https://www.indorse.io
https://metalinq.io/
Investment value equivalent in GBP as at 30 June 2022: GBP986,836 (Investment value equivalent in GBP as at 31 December 2021: GBP889,587)
StartupToken
Throughout the first half of 2022, StartupToken has continued providing support to Minty.Art, an NFT art marketplace running on the Polygon blockchain. StartupToken has also been discussing with several firms, some representing very well-known global brands via their Southeast Asia branches for the creation of NFTs and the development of NFT marketplaces and advisory services.
Post Period
In August 2022, StartupToken applied its know-how and experience in the NFT space through the launch of Mintyfi, a Subscription-as-a-service (SaaS) platform for brands and creators to easily mint and sell their NFTs on a ready-to-use NFT store.
https://minty.art/
https://mintify.store
Assessed total value of investment at 30 June 2022: GBP634,197 (Total value of investment at 31 December 2021: GBP595,001)
Malcolm Palle
Executive Chairman
6 months to 30 6 months to
June
30 June
Note 2022
2021
Unaudited
Unaudited
GBP GBP
Revenue from contracts with customers 138,888 79,677
Gross Profit 138,888 79,677
Administrative expenses (455,767) (416,279)
Gain/(loss) on other current assets (1,110,873) 24,216
Net fair value gains/(losses) on financial assets at fair value through profit 162,784 792,516
or loss
- (147,628)
Investments write-off
Profit/(Loss) before Income Tax (1,264,968) 332,502
Financial Income 3 6
Financial Expenses - (3,263)
Share of Associate profit/loss for the year (36,054) -
Forex Gain/(Loss) 16,189
(2,637)
Profit/(Loss) for the Period from Continuing Operations Attributable to Owners (1,284,830) 326,608
of the Parent
___________ ___________
Other Comprehensive Income
Items that may be subsequently reclassified to profit or loss
Change in fair value of other current assets at fair value through other
comprehensive income
- 739,921
Total Comprehensive Loss for the Period, Attributable to Owners of the Parent (1,284,830) 1,066,529
Earnings per Share
Basic earnings per share attributable to equity holders of the Parent 4 0.74(p) 0.21(p)
As at As at As at
Note 30 June 30 June
2022 2021 31 December
2021
Unaudited Unaudited Audited
GBP GBP GBP
Assets
Non-Current Assets
Intangible assets 3,720 3,720 3,720
Property, plant and equipment 1,132 1,886 1,509
Financial assets at fair value through profit or loss 5 2,389,832 2,936,846 2,238,596
Equity accounted investment in Joint Venture 21,469 -
2,394,684 2,963,921 2,243,824
Current Assets
Trade and other receivables 109,410 157,825 194,294
Cash and cash equivalents 1,143,906 1,874,192 1,513,892
Other current assets 1,311,630 1,257,371 2,221,623
2,564,946 3,289,388 3,929,809
Total Assets 4,959,630 6,253,310 6,173,633
Equity Attributable to Owners of the Parent
Share premium 8,344,974 8,344,974 8,344,974
Treasury Shares - (197,253) -
Share option reserve 694,724 20,029 681,061
Other reserve 504,114 1,244,035 504,114
Retained losses (4,976,951) (3,381,656) (3,692,121)
Total Equity Attributable to Owners of the Parent 4,566,861 6,030,129 5,838,028
Current Liabilities
Trade and other payables 392,769 123,071 335,605
Non-current Liabilities
Other payables - 100,109 -
Total Liabilities 392,769 223,180 335,605
Total Equity and Liabilities 4,959,630 6,253,310 6,173,633
Attributable to equity shareholders
Share Treasury Share Option Other Retained
Shares Reserve Reserves losses Total
Premium
GBP GBP GBP GBP GBP GBP
Balance as at 1 January 2021 6,949,974 (236,004) 20,029 504,114 (3,708,264) 3,529,852
Profit for the period - - - - 326,608 326,608
Change in fair value of available for sale 739,921 739,921
financial assets
Total comprehensive income - - - 739,921 326,608 1,066,529
Issue of shares 1,395,000 - - - - 1,395,000
Sale of treasury shares - 38,750 - - - 38,750
Total Transactions with Owners 1,395,000 38,750 - 1,244,035 504,114 1,433,750
Balance as at 30 June 2021 8,344,974 (197,254) 20,029 1,244,035 (3,381,656) 6,030,129
Balance as at 1 January 2022 8,344,974 - 681,061 504,114 (3,692,121) 5,838,028
Loss for the period - - - - (1,284,830) (1,284,830)
Total comprehensive income - - - - (1,284,830) (1,284,830)
Issue of share options - - 13,663 - - 13,663
Balance as at 30 June 2022 8,344,974 - 694,724 504,014 (4,976,951) 4,566,861
6 months 6 months Year to 31 December
to 30 June
2022 to 30 June 2021 2021
Unaudited Unaudited Audited
GBP GBP GBP
Cash flows from operating activities
Profit/(Loss) before taxation (1,284,830) 326,608 16,143
Adjustments for:
Finance costs - 3,263 -
Depreciation 377 (1,886) 755
Finance income (3) (6) (12)
Gain on sale of treasury shares - - (260,747)
Impairment of financial assets at fair value through profit or loss - 147,628 -
Share of Joint Venture loss for the period 36,054 - 44,769
Share based payments 13,663 - 661,032
Changes in value of other current assets 909,993 - (1,281,876)
(Increase)/decrease in trade and other receivables 84,883 45,677 9,208
(Decrease)/increase in trade and other payables 57,164 35,068 247,602
(Decrease)/increase in other payables - 100,109 -
Net cash generated from/(used in) operating activities (557,497)
(182,699) 656,461
Cash flows from investing activities
Interest received 3 6 12
Purchase of property, plant & equipment - - (2,264)
Proceeds on disposal of other current assets - 427,926 -
Purchase of financial assets at fair value through profit or loss (151,236) (792,516) 554,892
Purchase of financial assets at fair value through profit or loss - - (501,530)
Investment in equity accounted in joint venture (36,054) (21,469) (44,769)
Net cash (used in)/generated from investing activities
(187,287) (386,053) 6,341
Cash flows from financing activities
Finance costs - (3,263) -
Sale of treasury shares - 38,750 496,750
Net cash proceeds from issue of shares - 1,395,000 1,395,000
Net cash (used in)/generated from financing activities
- 1,430,487 1,891,750
Net increase/(decrease) in cash and cash equivalents (369,986) 1,700,895 1,340,594
Cash and cash equivalents at the beginning of the period/year 1,513,892 173,298 173,298
Cash and Cash Equivalents at end of Period/Year
1,143,906 1,874,192 1,513,892
NOTES TO THE INTERIM FINANCIAL
STATEMENTS
1. Basis of Preparation
Coinsilium Group Limited ("the Group" or "the Company") is a limited liability company domiciled in the British Virgin Islands, operationally based in Gibraltar and is quoted on the Aquis Growth Market.
The principal business of the Company and its subsidiaries (together the "Group") is investing in and accelerating blockchain technology companies, together with a venture builder and token and NFT sale strategic adviser. The finances innovative blockchain companies, with the intent of supporting the further development and commercialisation of these technologies. The Group also provides advisory and promotional services to technology startups and companies looking to undertake NFT sales and issue tokens via Token Generation Events such as Initial Coin Offerings.
The consolidated interim financial statements have been prepared in accordance with the requirements of the Aquis Growth Market listing rules for Companies and 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) and IFRS Interpretations Committee (IFRS IC) interpretations 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 requirements of the Aquis Growth Market listing rules for Companies and the recognition and measurement criteria of IFRS. 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 2021 audited financial statements. Statutory financial statements for the year ended 31 December 2021 were approved by the Board of Directors on 17 June 2022. 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 2021 Annual Report and Financial Statements, a copy of which is available on the Company's website: www.coinsilium.com. 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 2021 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 2022 that would be expected to have a material impact on the Group.
The consolidated interim financial statements for the 6 months ended 30 June 2022 and for the 6 months period ended 30 June 2021 have not been reviewed or audited.
3. Directors Remuneration
Directors of the Company received total remuneration of GBP176,033 for the 6 months ended 30 June 2022 (30 June 2021: GBP229,100).
4. Earnings Per Share
Basic earnings per share is calculated by dividing the total comprehensive income attributable to equity shareholders by the weighted average number of ordinary shares outstanding during the period.
Weighted As at 30 June 2022 As at 30 June 2021
average
number of Earnings per Share Earnings per Share
Shares
GBP No. GBP GBP
Basic EPS
Earnings attributable to shareholders
(1,284,830) 174,748,234 0.74 0.21
5. Financial Assets at fair value through profit and loss
At 30 June 2022, the Company owns unlisted shares in:
-- Greengage Global Holding Ltd, a company incorporated in UK;
-- StartupToken Singapore Pte. Ltd. in Singapore;
-- Elevate Limited, a company incorporated in Gibraltar;
-- Coin-Dash Ltd, a company incorporated in Israel; and
-- Indorse Pte. Ltd., a company incorporated in Singapore.
6. Dividends
The Directors do not recommend the payment of a dividend. 7. Approval of Interim Financial Statements
The interim financial statements were approved by the Board of Directors on 29 September 2022.
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ISIN: VGG225641015 Category Code: MSCM TIDM: COIN Sequence No.: 191473 EQS News ID: 1453775 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
September 30, 2022 03:00 ET (07:00 GMT)
