Half-year Report

TMT Investments PLC

15 August 2023

 

15 August 2023

TMT INVESTMENTS PLC

("TMT" or the "Company")

Half-year report for the six months to 30 June 2023

TMT Investments Plc (AIM: TMT), the venture capital company investing in high-growth technology companies, is pleased to announce its unaudited interim results for the half-year ended 30 June 2023.

Highlights:

·    NAV per share of US$6.32 (down 1.4% from US$6.41 as of 31 December 2022)

·    Total NAV of US$198.7 million (US$201.7 million as of 31 December 2022)

·    5-year IRR of 17.6% per annum

·    US$2.4 million of investments across six new and existing companies in the first half of 2023

·    US$1.8 million of disposals during the period

·    US$7.8 million in cash and cash equivalent reserves (including treasury bills) as of 14 August 2023

Alexander Selegenev, Executive Director of TMT, commented:

"In the first half of 2023, TMT's portfolio benefited from the revaluation of four of its companies (1Fit, Collectly, SonicJobs and Mobilo) as a result of each raising fresh capital at significantly greater than prior valuations.  At the same time, volatility in the public markets affected the share price of NASDAQ-listed Backblaze, resulting in a US$6.5 million reduction in the value of TMT's investment in Backblaze, based on Backblaze's closing mid-market price as of 30 June 2023 of US$4.33 per share.  The Company's NAV per share in the first half of 2023 decreased by 1.4%.

In line with the market, TMT's portfolio has continued to see an increase in divergence between the stronger and weaker performers.  TMT's largest holdings (Bolt, Backblaze, PandaDoc, 3S Money and Scentbird) continued to perform well, recording double-digit annualised revenue growth.  These are well capitalised companies with high levels of cash reserves, a strong global presence and are typically close to achieving profitability or already achieving profitability.  At the same time, during the period TMT partially or fully wrote down the value of four of its smaller investments.

2022 and 2023 saw a dramatic change in the venture capital and technology company environment, with most investors "returning to basics" by supporting ultimately profitable business models at sensible valuations.  Start-ups have now realised that the "growth at any cost" approach has been replaced with a focus on "fundamentally profitable growth at the right valuation".  As a result, start-ups' success/survival rate is now largely defined by their ability to reposition and adjust to this changed market environment.

We are seeing a number of outstanding companies that are thriving in this changed market environment.  We have therefore continued to make investments selectively, deploying a total of US$2.4 million across current and new portfolio companies during the first half of 2023, as well as US$0.9m invested after the reporting period.

With no financial debt and cash and cash equivalent reserves (including treasury bills) of approximately US$7.8 million as of 14 August 2023, TMT is well positioned to ride out the current market volatility and to continue investing in companies that meet our investment criteria as fully as possible, while disposing of our investments fully or partially whenever there is an opportunity to maximise shareholder value."

For further information contact:

TMT Investments Plc Alexander Selegenev Executive Director www.tmtinvestments.com	[phone] (Computershare - Company Secretary) [e-mail]
Strand Hanson Limited (Nominated Adviser) James Bellman / James Dance	[phone]
Cenkos Securities plc (Joint Broker) Ben Jeynes	[phone]
Hybridan LLP (Joint Broker) Claire Louise Noyce	[phone]
Kinlan Communications David Hothersall	[phone] [e-mail]

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European (Withdrawal) Act 2018 (as amended).

About TMT Investments Plc

TMT Investments Plc invests in high-growth technology companies globally across a number of core specialist sectors.  Founded in 2010, TMT has a current investment portfolio of over 55 companies and net assets of US$199 million as of 30 June 2023.  The Company's objective is to generate an attractive rate of return for shareholders, predominantly through capital appreciation.  The Company is traded on the AIM market of the London Stock Exchange. www.tmtinvestments.com.

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EXECUTIVE DIRECTOR'S STATEMENT

In the first half of 2023, the venture capital markets generally continued to experience a higher degree of market and economic volatility.

Investors' increased focus on start-ups' profitability has created a "survival of the fittest" market environment.  On the one hand, companies with superior products and business models that have continued to grow and improve profitability continue to attract new capital at higher valuations.  On the other hand, companies with weaker business models or non-mission critical products that were more dependent on future funding have come under increased pressure.

In line with the market, TMT's portfolio has continued to see an increasing divergence between the stronger and weaker performers.

Despite the ongoing challenges in the macroeconomic and political environment, investors in the first half of 2023 continued to back fast-growing, high-quality digital technology companies.  This resulted in positive revaluations for several of TMT's portfolio companies.  We were pleased to see 1Fit, Collectly, SonicJobs and Mobilo receive further validation of their business models by raising fresh capital at notably higher valuation levels.

The volatility in the share prices of many publicly traded technology companies continued to negatively affect the value of TMT's equity stake in NASDAQ-traded cloud storage company Backblaze (www.backblaze.com), resulting in a US$6.5 million reduction in the value of TMT's investment in Backblaze as of 30 June 2023, based on Backblaze's closing mid-market price of US$4.33 per share at that time.  Despite such financial market volatility, Backblaze's business has been developing well, recording 19.4% revenue growth in the first half of 2023 compared to the same period of 2022.  Backblaze remains well capitalised, with an estimated unaudited net cash position of approximately US$4.1 million as of 30 June 2023.  Backblaze's closing mid-market price on 11 August 2023 was US$4.36 per share.

TMT adopts a highly prudent approach to valuing its portfolio investments and therefore regularly reviews and writes down investments that are not showing the progress TMT believes is required to justify the previously reported valuation level.  As a result, during the period TMT partially or fully wrote down the value of four of its smaller investments (in addition to Backblaze, and excluding any further write-downs related purely to exchange rate fluctuations).

NAV per share

The Company's NAV per share in the first half of 2023 decreased by 1.4% to US$6.32 as of 30 June 2023 (31 December 2022: US$6.41), mainly as a result of the downward revaluation of Backblaze during the period.

Operating expenses

In the first half of 2023, the Company's administrative expenses of US$641,077 were below corresponding 2022 levels (first half of 2022: US$772,317), reflecting the Company's reduced level of investment and business development activities during the period.

Financial position

As of 30 June 2023, the Company had no financial debt and cash and cash equivalent reserves (including treasury bills) of approximately US$8.9 million (31 December 2022: US$10.1 million).  As of 14 August 2023, the Company had cash and cash equivalent reserves (including treasury bills) of approximately US$7.8 million as a result of investments of US$0.9 million made by the Company since the period end.

Outlook

TMT has a diversified investment portfolio of over 55 companies, focused primarily on Big Data/Cloud, SaaS (software-as-a-service), Mobility, and FinTech.

2022 and 2023 saw a dramatic change in the venture capital and technology company environment, with most investors "returning to basics" by supporting ultimately profitable business models at sensible valuations.  Start-ups have now realised that the "growth at any cost" approach has been replaced with a focus on "fundamentally profitable growth at the right valuation".  As a result, start-ups' success/survival rate is now largely defined by their ability to reposition and adjust to this changed market environment.

Despite the ongoing market and political volatility, investors continue to invest in high-quality technology businesses at the right valuation levels.  TMT is continuing to identify such opportunities very selectively, whilst employing a generally cautious investment approach.  With no financial debt and cash and cash equivalent reserves (including treasury bills) of approximately US$8.0 million as of 14 August 2023, TMT is well positioned to ride out the current market volatility and to continue making investments and realising full and partial disposals when the right opportunities present themselves.

Alexander Selegenev

Executive Director

15 August 2023

PORTFOLIO DEVELOPMENTS

The following developments have had an impact on, and are reflected in, the Company's NAV and/or financial statements as of 30 June 2023 in accordance with applicable accounting standards.

Full and partial cash exits, and positive revaluations:

·    In January and March 2023, TMT received a total additional US$1.6 million in dividends from Hugo, as part of the consideration for Hugo's disposal of its food delivery and quick commerce business in Central America to Delivery Hero completed in 2022.

·    In February 2023, TMT received US$0.3 million from Backblaze, Inc., as a settlement payment in respect of TMT's additional investment in Backblaze in 2021.

·    Alippe, Inc., trading as 1Fit, a mobile app providing users with access to multiple gyms and yoga studios in Central Asia (https://1fit.app), completed a new simple agreement for future equity ("SAFE") funding round.  The transaction represented a revaluation uplift of US$1.1 million (or 216%) in the fair value of TMT's investment, compared to the previous reported amount as of 31 December 2022.

·    Collectly, a patient billing platform for medical organisations (www.collectly.co), completed a new equity funding round.  The transaction represented a revaluation uplift of US$4.4 million (or 213%) in the fair value of TMT's investment, compared to the previous reported amount as of 31 December 2022.

·    Lulu Systems, Inc., trading as Mobilo, a smart digital business card solution (www.mobilocard.com), completed a new SAFE funding round.  The transaction represented a revaluation uplift of US$0.5 million (or 46%) in the fair value of TMT's investment, compared to the previous reported amount as of 31 December 2022.

·    SonicJobs App Ltd., a job search app focused on "blue collar" positions (www.sonicjobs.com), completed a new equity funding round.  The transaction represented a revaluation uplift of US$0.3 million (or 45%) in the fair value of TMT's investment (incl. gain from foreign exchange fluctuations), compared to the previous reported amount as of 31 December 2022.

In addition, the following of TMT's non-USD denominated investments increased in value due to favourable exchange rate movements as of 30 June 2023: Bolt, Timbeter, 3S Money, Feel, Hinterview, MTL (Outfund), FemTech, Outvio, EstateGuru, Bairro, and Laundry Heap.

Negative revaluations:

The following of the Company's portfolio investments were negatively revalued in the first half of 2023:

Portfolio Company	Write-down amount (US$)	Reduction as % of fair value reported as of 31 Dec 2022	Reasons for write-down
Backblaze	6,529,412	28%	Based on the closing mid-market price of US$4.33 per share on 30 June 2023 (incl. the US$0.3 million received as settlement in respect of TMT's additional investment in Backblaze in 2021)
Bafood	1,875,000	75%	Business negatively affected by the current market conditions and exposure to Ukraine
Rocket Games (Legion Farm)	1,650,000	100%	Under review
Conte.ai (Postoplan)	1,212,146	74%	Business negatively affected by the current market conditions (figures also include foreign exchange effect)
Metrospeedy	500,000	50%	The company is changing its business model due to significant changes in operating environment
Total	11,766,558

In addition, TMT's non-USD denominated investment in eAgronom decreased in value due to exchange rate fluctuations as of 30 June 2023.

Key developments for the five largest portfolio holdings in the first half of 2023 (source: TMT's portfolio companies):

Bolt (ride-hailing and food delivery service):

·   Active in over 550 cities globally (up from over 500 cities as of 31 December 2022)

·   Double-digit annualised revenue growth

·   Announced plans to achieve profitability in 2024 and potentially float in 2025

Backblaze (cloud storage provider):

·   Double-digit annualised revenue growth

·   Multiple new integrations and partnerships building basis for future growth

·   Targeting adjusted EBITDA breakeven point in Q4 2023

PandaDoc (proposal automation and contract management software):

·   Double-digit annualised revenue growth

·   Over 50,000 customers (from over 40,000 as of 31 December 2022)

3S Money (provider of corporate multi-currency bank accounts):

·   Double-digit annualised revenue growth

·   Regulatory permissions obtained in Luxemburg and Dubai; Singapore licence in progress

·   Main UK business is EBITDA-positive

Scentbird (Perfume, wellness and beauty product subscription service):

·   Double-digit annualised revenue growth

·   EBITDA positive

Further investments:

Given the persistently high level of market uncertainty and volatility, TMT continued to be more selective and made the following investments to date in 2023:

Follow-on investments during the reporting period:

·    Additional €150,000 in Bairrissimo, LDA, trading as Bairro, an instant food and grocery delivery company in Portugal (https://bairro.io);

·    Additional US$100,000 in Cyberwrite, an AI cyber insurance platform providing cybersecurity insights and risk quantification for businesses worldwide (www.cyberwrite.com);

·    Additional £45,861 in FemTech, a London-based technology accelerator focused on female founders (www.femtechlab.com);

·    Additional US$500,000 in Alippe, Inc., trading as 1Fit, a mobile app providing users with access to multiple gyms and yoga studios in Central Asia (https://1fit.app).

Follow-on investments after the reporting period

·    In July 2023, TMT invested an additional US$200,000 in Lulu Systems, Inc., trading as Mobilo, a smart digital business card solution (www.mobilocard.com).

New investments during the reporting period:

·    Initial US$500,000 in Phoenix Health Inc., a Canada-based direct-to-consumer health platform for men (www.phoenix.ca); and

·    Initial US$1,000,000 in GameOn Inc., an AI chat platform that powers conversational experiences for fashion, sport and retail brands and teams (www.gameontechnology.com).

New investments after the reporting period

·    In August 2023, TMT invested an initial US$700,000 in Montera, Inc., trading as Forta, a family-powered autism therapy platform (www.fortahealth.com).

FINANCIAL STATEMENTS

Statement of Comprehensive Income

		For the six months ended 30/06/2023		For the six months ended 30/06/2022
	Notes	USD		USD
Losses on investments	3	(2,577,516)		(72,148,629)
Dividend income		-		105,700
Total investment loss		(2,577,516)		(72,042,929)
Expenses
Administrative expenses	5	(641,077)		(772,317)
Operating loss		(3,218,593)		(72,815,246)
Finance income		114,214		-
Currency exchange gain/(loss)		40,206		(185,967)
Loss before taxation		(3,064,173)		(73,001,213)
Taxation	7	-		-
Loss attributable to equity shareholders		(3,064,173)		(73,001,213)
Total comprehensive loss for the year		(3,064,173)		(73,001,213)
Loss per share
Basic and diluted loss per share (cents per share)	8	(9.74)		(232.11)

Statement of Financial Position

		At 30 June 2023 USD			At 31 December 2022 USD
		Unaudited				Audited
	Notes
Non-current assets
Financial assets at FVPL	9	193,117,790				195,260,535
Total non-current assets		193,117,790				195,260,535
Current assets
Trade and other receivables	10	421,475				1,382,811
US treasury bills		1,004,500				-
Cash and cash equivalents	11	7,861,447				10,102,683
Total current assets		9,287,422				11,485,494
Total assets		202,405,212				206,746,029
Current liabilities
Trade and other payables	12	3,735,455				5,012,099
Total current liabilities		3,735,455				5,012,099
Total liabilities		3,735,455				5,012,099
Net assets		198,669,757				201,733,930
Equity
Share capital	13	53,283,415				53,283,415
Retained profit		145,386,342				148,450,515
Total equity		198,669,757				201,733,930

Statement of Cash Flows

		For the six months ended 30/06/2023	For the six months ended 30/06/2022
	Notes	USD	USD
Operating activities
Operating loss		(3,218,593)	(72,815,246)
Adjustments for non-cash items:
Changes in fair value of financial assets at FVPL	3	2,673,620	72,176,280
Currency exchange gain/(loss)		40,206	(185,966)
Gain on receivables		(96,104)	-
		(600,871)	(824,932)
Changes in working capital:
Decrease in trade and other receivables	10	1,057,440	305,007
Decrease in trade and other payables	12	(1,276,644)	(3,766,786)
Net cash used in operating activities		(820,075)	(4,286,711)
Investing activities
Interest received on treasury bills and deposits		114,214	-
Purchase of treasury bills		(1,004,500)	-
Purchase of financial assets at FVPL	9	(2,365,489)	(7,283,100)
Proceeds from sale of financial assets at FVPL	9	1,834,614	-
Net cash used in investing activities		(1,421,161)	(7,283,100)
Financing activities
Net cash from financing activities		-	-
Decrease in cash and cash equivalents		(2,241,236)	(11,569,811)
Cash and cash equivalents at the beginning of the period	11	10,102,683	25,527,801
Cash and cash equivalents at the end of the period	11	7,861,447	13,957,990

Statement of Changes in Equity

		Share capital	Retained profit	Total
		USD	USD	USD
Balance at 1 January 2022		53,283,415	229,844,348	283,127,763
Loss for the year		-	(81,393,833)	(81,393,833)
Total comprehensive loss for the year		-	(81,393,833)	(81,393,833)
Balance at 31 December 2022		53,283,415	148,450,515	201,733,390
Loss for the period		-	(3,064,173)	(3,064,173)
Total comprehensive loss for the period		-	(3,064,173)	(3,064,173)
Balance at 30 June 2023		53,283,415	145,386,342	198,699,757

NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2023

1.         Company information

TMT Investments Plc ("TMT" or the "Company") is a company incorporated in Jersey with its registered office at 13 Castle Street, St Helier, JE1 1ES, Channel Islands.

The Company was incorporated and registered on 30 September 2010 in Jersey under the Companies (Jersey) Law 1991 (as amended) with registration number 106628 under the name TMT Investments Limited.  The Company obtained consent from the Jersey Financial Services Commission pursuant to the Control of Borrowing (Jersey) Order 1985 on 30 September 2010.  On 1 December 2010 the Company re-registered as a public company and changed its name to TMT Investments Plc.  The Company's ordinary shares were admitted to trading on the AIM market of the London Stock Exchange on 10 December 2010.

The memorandum and articles of association of the Company do not restrict its activities and therefore it has unlimited legal capacity.  The Company's ability to implement its Investing Policy and achieve its desired returns will be limited by its ability to identify and acquire suitable investments.  Suitable investment opportunities may not always be readily available.

The Company will seek to make investments in any region of the world.

Financial statements of the Company are prepared by and approved by the Directors in accordance with International Financial Reporting Standards, International Accounting Standards and their interpretations issued or adopted by the International Accounting Standards Board as adopted by the United Kingdom ("IFRSs").  The Company's accounting reference date is 31 December.

2.         Summary of significant accounting policies

2.1      Basis of presentation

Interim financial statements for the six months ended 30 June 2023 and 2022 are unaudited and were approved by the Directors on 14 August 2023.  They do not constitute statutory accounts as defined in section 434 of the Companies Act 2006.  The financial statements for the year ended 31 December 2022 were prepared in accordance with International Financial Reporting Standards as adopted by the United Kingdom.  The report of the auditor on those financial statements was unqualified and did not draw attention to any matters by way of emphasis of matter.

The principal accounting policies applied by the Company in the preparation of these unaudited financial statements are set out below and have been applied consistently.

The financial statements have been prepared on a going concern basis, under the historical cost basis as modified by the fair value of financial assets at ("FVTPL"), as explained in the accounting policies below, and in accordance with IFRS.  Historical cost is generally based on the fair value of the consideration given in exchange for assets.

2.2      Foreign currency translation

(a) Functional and presentation currency

Items included in the financial statements of the Company are measured in United States Dollars ('US dollars', 'USD' or 'US$'), which is the Company's functional and presentation currency.

(b) Transactions and balances

Foreign currency transactions are translated into US$ using the exchange rates prevailing at the dates of the transactions (i.e. mid-market price investments). 

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. (i.e. comparable company analysis and cost-based investments as these are effectively re-fair valued at each year-end).

Exchange differences arising from the translation at the year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.

Conversion rates, USD
Currency					At 30/06/2023	Average rate, for six months ended 30/06/2023
British pounds, £					1.2714	1.2332
Euro, €					1.0910	1.0806

2.3      New IFRSs and interpretations

The following standards and amendments became effective from 1 January 2023, but did not have any material impact on the Company:

·    amendments to IFRS 17 "Initial application of IFRS 17" and IFRS 9 "Comparative information"

·    amendments to IAS  1 and Practice Statement 2 "Disclosure of accounting methods"

·    amendments to IAS  8 "Definition of accounting estimates"

·    amendments to IAS 12 "Deferred tax related to assets and liabilities arising from a single transaction"

3          (Loss)/Gain on investments

	For six months ended 30/06/2023	For six months  ended 30/06/2022
	USD	USD
Gross interest income from convertible notes receivable	-	19,780
Net interest income from convertible notes receivable	-	19,780
Losses on changes in fair value of financial assets at FVPL	(2,673,620)	(72,176,280)
Other gains on investment (revaluation of receivables)	96,104	7,871
Total loss on investments	(2,577,516)	(72,148,629)

4          Segmental analysis

Geographic information

The Company has investments in the following eight geographical areas - USA, Estonia, the United Kingdom, British Virgin Islands ('BVI'), Cyprus, Portugal, Canada, and the Cayman Islands.

Non-current financial assets

As at 30/06/2023	USA	Cayman Islands	BVI	Estonia	Cyprus	United Kingdom	Portugal	Canada	Total
	USD	USD	USD	USD	USD	USD	USD	USD	USD
Equity investments	69,218,838	-	1,695,398	73,279,929	330,000	32,151,975	-	-	176,676,140
Convertible notes & SAFEs	10,590,030	1,030,000	-	415,945	2,225,000	601,950	1,063,725	515,000	16,441,650
Total	79,808,868	1,030,000	1,695,398	73,695,874	2,555,000	32,753,925	1,063,725	515,000	193,117,790

As at 31/12/2022	USA	Cayman Islands	BVI	Estonia	Cyprus	United Kingdom	Portugal	Total
	USD	USD	USD	USD	USD	USD	USD	USD
Equity investments	66,393,603	-	3,255,052	71,759,682	330,000	30,481,358	-	172,219,695
Convertible notes & SAFEs	14,800,030	1,030,000	-	1,628,090	4,100,000	601,950	880,770	23,040,840
Total	81,193,633	1,030,000	3,255,052	73,387,772	4,430,000	31,083,308	880,770	195,260,535

5          Administrative expenses

Administrative expenses include the following amounts:

	For six months ended 30/06/2023	For six months ended 30/06/2022
	USD	USD
Staff expenses (note 6)	412,081	414,602
Professional fees	147,671	188,923
Legal fees	13,576	60,092
Bank and LSE charges	6,502	6,746
Audit and accounting fees	13,459	25,522
Other expenses	47,788	76,432
	641,077	772,317

6          Staff expenses

	For six months ended 30/06/2023	For six months ended 30/06/2022
	USD	USD
Directors' fees	105,481	108,002
Wages and salaries	306,600	306,600
	412,081	414,602

Wages and salaries shown above include fees and salaries relating to the six months ended 30 June.

The Directors' fees for the six months ended 30 June 2023 and 2022 were as follows:

	For six months ended 30/06/2023	For six months ended 30/06/2022
	USD	USD
Alexander Selegenev	55,000	55,000
Yuri Mostovoy	27,500	27,500
James Joseph Mullins	13,650	14,171
Andrea Nastaj	9,331	1,984
Petr Lanin	-	9,347
	105,481	108,002

The Directors' fees shown above are all classified as 'short term employment benefits' under International Accounting Standard 24. The Directors do not receive any pension contributions or other benefits. The average number of staff employed (excluding Directors) by the Company during the six months ended 30 June 2023 was 7 (six months ended 30 June 2022: 7).

Key management personnel of the Company are defined as those persons having authority and responsibility for the planning, directing and controlling the activities of the Company, directly or indirectly. Key management of the Company are therefore considered to be the Directors of the Company. There were no transactions with the key management, other than their Directors fees, bonuses and reimbursement of business expenses.

7        Income tax expense

The Company is incorporated in Jersey. No tax reconciliation note has been presented as the income tax rate for Jersey companies is 0%.

8        Loss per share

The basic loss per share is based upon the net loss for the six months ended 30 June 2023 attributable to the ordinary shareholders of US$3,064,173 (for the six months ended 30 June 2022: net loss of US73,001,213) and the weighted average number of ordinary shares outstanding was calculated as follows:

Loss per share	For the six months ended 30/06/2023	For six months ended 30/06/2022
Basic loss per share (cents per share)	(9.74)	(232.11)
Loss attributable to equity holders of the entity	(3,064,173)	(73,001,213)

The weighted average number of ordinary shares outstanding was calculated as follows:

	For the six months ended 30/06/2023	For the six months ended 30/06/2022
Weighted average number of shares in issue
Ordinary shares	31,451,538	31,451,538
	31,451,538	31,451,538

During the six months ended 30 June 2023 and 30 June 2022 there were no dilutive instruments in issue.

9        Non-current financial assets

Reconciliation of fair value measurements of non-current financial assets:

	At 30 June 2023 USD	At 31 December 2022 USD
Investments held at fair value through profit and loss
- listed and unlisted shares (i)	176,676,140	172,219,695
- promissory notes (ii)	3,117,924	4,830,070
- SAFEs (iii)	13,323,726	18,210,770
	193,117,790	195,260,535

	At 30 June 2023 USD	At 31 December 2022 USD
Opening valuation	195,260,535	265,454,136
Purchased at cost	2,365,489	9,608,593
Disposal proceeds	(1,834,614)	(163,266)
Disposal due to full impairment	(1,650,000)	(1,280,016)
Unrealised losses	(1,023,620)	(78,358,912)
Closing valuation	193,117,790	195,260,535

Movement in unrealised gains
Opening accumulated unrealised gains	117,242,370	195,706,888
Movement in unrealised losses	(1,023,620)	(78,358,912)
Transfer of previously unrealised losses to realised reserve on disposal of investments	(1,286,678)	(105,606)
Closing accumulated unrealised gains	114,932,072	117,242,370

Reconciliation of investments, if held under the cost (less impairment) model:
Historic cost basis
Opening book cost	78,018,165	69,747,248
Purchases (including consulting and legal fees)	2,365,489	9,608,593
Disposal on sale of investment	(547,936)	(57,660)
Disposal due to impairment	(1,650,000)	(1,280,016)
Closing book cost	78,185,718	78,018,165

Valuation methodology
Mid-market price	16,188,519		22,992,932
Comparable company analysis	97,842,620		94,755,170
Cost or price of recent investment	79,086,651		77,512,433
	193,117,790		195,260,535

The estimates significant to the financial statements during the year and at the year-end is the consideration of the fair value of financial assets at FVPL as set out in the relevant accounting policies shown above. A number of the financial assets at FVPL held by the Company are at an early stage of their development.  The Company cannot yet carry out regular reliable fair value estimates of some of these investments.  Future events or transactions involving the companies invested in may result in more accurate valuations of their fair values (either upwards or downwards) which may affect the Company's overall net asset value. 

The list of fully impaired investments, in which the Company still maintained ownership as of 30 June 2023, was as follows:

Company name	Investment amount (USD)	Year of impairment
Rollapp	350,000	2018
UsingMiles/Help WW/Source Inc.	250,000	2018
Favim	300,000	2018
AdInch	1,000,000	2018
E2C	124,731	2020
Drupe	225,000	2019
Virool/Turgo	600,000	2017
Sixa	300,000	2019
Usual Beverage Co.	300,000	2022
StudyFree	1,000,000	2022
Rocket Games (Legionfarm)	1,650,000	2023
Total	6,099,731

Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognised in profit or loss.

When measuring the fair value of a financial instrument, the Company uses relevant transactions during the year or shortly after the year end, which gives an indication of fair value and considers other valuation methods to provide evidence of value. The "price of recent investment" methodology is used mainly for venture capital investments, and the fair value is derived by reference to the most recent financing round or sizeable partial disposal. Fair value change is only recognised if that round involved a new external investor. From time to time, the Company may assess the fair value in the absence of a relevant independent equity transaction by relying on other market observable data and valuation techniques, such as the analysis of revenue multiples of comparable companies and/or comparable transactions. The nature of such valuation techniques is highly judgmental and dependent on the market sentiment at the time of the analysis.

(i)            Equity investments as at 30 June 2023:

Investee company	Date of initial investment	Value at 1 Jan 2023, USD	Additions to equity investments during the period, USD	Conversions from loan notes, USD	Gain/(loss) from changes in fair value of equity investments, USD	Disposals, USD	Write-offs, USD	Value at 30 June 2023, USD	Equity stake owned
Wanelo	21.11.2011	602,447	-	-	-	-	-	602,447	4.69%
Backblaze	24.07.2012	22,992,931	-	-	(6,529,413)	(275,000)	-	16,188,518	10.39%
Remote.it	13.06.2014	131,200	-	-	-	-	-	131,200	1.64%
Bolt	15.09.2014	69,756,984	-	-	1,528,956	-	-	71,285,940	1.30%
PandaDoc	11.07.2014	10,844,468	-	-	-	-	-	10,844,468	1.17%
Full Contact	11.01.2018	244,506	-	-	-	-	-	244,506	0.19%
ScentBird	13.04.2015	6,590,954	-	-	-	-	-	6,590,954	4.18%
Workiz	16.05.2016	3,971,659	-	-	-	-	-	3,971,659	1.89%
Hugo	19.01.2019	3,255,052	-	-	(40)	(1,559,614)	-	1,695,398	3.55%
MEL Science	25.02.2019	905,656	-	-	-	-	-	905,656	3.21%
Qumata (Healthy Health)	06.06.2019	1,818,822	-	-	-	-	-	1,818,822	2.52%
eAgronom	31.08.2018	454,678	-	-	(42,639)	-	-	412,039	1.34%
Rocket Games (Legionfarm)	16.09.2019	200,000	-	-	-	-	(200,000)	-	1.26%
Timbeter	05.12.2019	213,520	-	-	4,680	-	-	218,200	4.64%
Classtag	03.02.2020	200,000	-	200,000	-	-	-	400,000	1.66%
3S Money Club	07.04.2020	14,090,596	-	-	790,029	-	-	14,880,625	12.21%
Hinterview	21.09.2020	812,730	-	-	45,568	-	-	858,298	4.97%
Virtual Mentor (Allright)	12.11.2020	772,500	-	-	-	-	-	772,500	2.75%
NovaKid	13.11.2020	2,949,855	-	-	-	-	-	2,949,855	1.51%
MTL Financial (OutFund)	17.11.2020	2,565,918	-	-	143,865	-	-	2,709,783	3.63%
Scalarr	15.08.2019	1,378,282	-	-	-	-	-	1,378,282	7.66%
Accern	21.08.2019	2,873,884	-	-	-	-	-	2,873,884	3.10%
Feel	13.08.2020	3,653,220	-	-	204,828	-	-	3,858,048	10.00%
Affise	18.09.2019	1,795,680	-	-	-	-	-	1,795,680	8.70%
3D Look	03.03.2021	500,000	-	-	-	-	-	500,000	3.77%
FemTech	30.03.2021	810,606	55,084	-	48,672	-	-	914,362	9.74%
Muncher	23.04.2021	3,707,395	-	2,000,000	-	-	-	5,707,395	6.10%
CyberWrite	20.05.2021	975,741	100,000	-	-	-	-	1,075,741	3.52%
Outvio	22.06.2021	533,800	-	-	11,700	-	-	545,500	4.00%
Collectly	13.07.2021	-	-	6,449,328	-	-	-	6,449,328	3.23%
VertoFX	16.07.2021	1,132,999	-	-	-	-	-	1,132,999	3.24%
Academy of Change	02.08.2021	330,000	-	-	-	-	-	330,000	7.69%
EstateGuru	06.09.2021	800,700	-	-	17,550	-	-	818,250	2.73%
Prodly	09.09.2021	1,800,000	-	-	-	-	-	1,800,000	4.39%
Sonic Jobs	15.09.2021	620,009	-	-	281,327	-	-	901,336	2.54%
EdVibe (Study Space, Inc)	02.11.2021	750,000	-	-	-	-	-	750,000	7.36%
1Fit (Alippe, Inc)	24.12.2021	500,000	-	-	1,080,320	-	-	1,580,320	4.70%
Agendapro	03.09.2021	515,000	-	-	-	-	-	515,000	2.00%
Laundry Heap	28.01.2022	1,203,801	-	-	101,244	-	-	1,305,045	2.35%
SOAX	21.01.2022	4,000,000	-	-	-	-	-	4,000,000	9.41%
Spin.ai	17.12.2018	964,102	-	-	-	-	-	964,102	1.64%
Total		172,219,695	155,084	8,649,328	(2,313,353)	(1,834,614)	(200,000)	176,676,140

(ii)           Convertible loan notes as at 30 June 2023:

Investee company	Date of initial investment	Value at 1 Jan 2023, USD	Additions to convertible note investments during the period, USD	Conversions from loan notes, USD	Gain/(loss) from changes in fair value of convertible notes, USD	Disposals, USD	Value at 30 Jun 2023, USD	Term, years	Interest rate, %
Sharethis	26.03.2013	570,030	-	-	-	-	570,030	-	1.09%
Conte.ai/ Postoplan	08.12.2020	1,628,090	-	-	(1,212,146)	-	415,944	1.0	2.00%
Metrospeedy	16.07.2021	1,000,000	-	-	(500,000)	-	500,000	-	-
MedVidi	27.09.2021	1,030,000	-	-	-	-	1,030,000	-	-
Laundry Heap	21.11.2022	601,950	-	-	-	-	601,950	-	-
Total		4,830,070	-	-	(1,712,146)	-	3,117,924

(iii)          SAFEs as at 30 June 2023:

Investee company	Date of initial investment	Value at 1 Jan 2023, USD	Additions to SAFE investments during the period, USD	Conversions to equity, USD	Gain/loss from changes in fair value of SAFE investments, USD	Disposals, USD	Write-offs, USD	Value at 30 June 2023, USD
Cheetah (Go-X)	29.07.2019	350,000	-	-	-	-	-	350,000
Adwisely (Retarget)	24.09.2019	1,600,000	-	-	-	-	-	1,600,000
Rocket Games (Legionfarm)	17.09.2019	1,450,000	-	-	-	-	(1,450,000)	-
Classtag	03.02.2020	200,000	-	(200,000)	-	-	-	-
Moeco	08.07.2020	500,000	-	-	-	-	-	500,000
Aurabeat	03.05.2021	1,030,000	-	-	-	-	-	1,030,000
Synder (CloudBusiness Inc)	26.05.2021	2,060,000	-	-	-	-	-	2,060,000
Collectly	13.07.2021	2,060,000	-	(6,449,328)	4,389,328	-	-	-
OneNotary (Adorum)	01.10.2021	500,000	-	-	-	-	-	500,000
BaFood	05.11.2021	2,500,000	-	-	(1,875,000)	-	-	625,000
Educate online	16.11.2021	1,000,000	-	-	-	-	-	1,000,000
My Device Inc	30.11.2021	1,050,000	-	-	-	-	-	1,050,000
Mobilo (Lulu Systems, Inc)	09.12.2021	1,030,000	-	-	470,000	-	-	1,500,000
Muncher	13.12.2021	2,000,000	-	(2,000,000)	-	-	-	-
Bairro	12.01.2022	880,770	165,405	-	17,551	-	-	1,063,726
1Fit (Alippe, Inc)	19.04.2023	-	500,000	-	-	-	-	500,000
Phoenix	29.05.2023	-	515,000	-	-	-	-	515,000
GameOn	19.06.2023	-	1,030,000	-	-	-	-	1,030,000
Total		18,210,770	2,210,405	(8,649,328)	3,001,879	-	(1,450,000)	13,323,726

10      Trade and other receivables

	At 30 June 2023	At 31 December 2022
	USD	USD
Prepayments	53,237	42,550
Other receivables	235,960	1,219,506
Interest receivable on promissory notes	113,214	113,214
Interest receivable on deposit	19,064	7,541
	421,475	1,382,811

The fair values of trade and other receivables approximate to their carrying amounts as presented above. During the six months ended 30 June 2023 and 2022 no balances were past due or impaired, and no credit losses had been expected.

11      Cash and cash equivalents

The cash and cash equivalents as at 30 June 2023 include cash in banks. Cash and cash equivalents comprise the following:

	At 30 June 2023	At 31 December 2022
	USD	USD
Deposits	5,579,608	2,502,188
Bank balances	2,281,839	7,600,495
	7,861,447	10,102,683

The following table represents an analysis of cash and equivalents by rating agency designation based on Moody`s Investors Service and Standards & Poor`s credit rating or their equivalent:

	At 30 June 2023	At 31 December 2022
	USD	USD
Bank balances
A3 rating	-	7,587,687
Baa1 rating	2,250,027	-
Baa3 rating	2,108	2,447
Not rated	29,704	10,361
	2,281,839	7,600,495

	At 30 June 2023		At 31 December 2022
	USD		USD
Deposits
A1 rating	5,579,608		2,502,188
	5,579,608		2,502,188

12      Trade and other payables

	At 30 June 2023	At 31 December 2022
	USD	USD
Salaries payable	128,333	81,838
Directors' fees payable	24,568	66,100
Bonus payable	3,503,905	4,817,785
Trade payables	68,067	7,702
Other current liabilities	3,316	3,307
Accruals	7,266	35,367
	3,735,455	5,012,099

The fair values of trade and other payables approximate to their carrying amounts as presented above.  The bonus payable amount as of 30 June 2023 relates to the bonuses earned in the 2021 financial year.

13      Share capital

On 30 June 2023 the Company had an authorised share capital of unlimited ordinary shares of no par value and had issued ordinary share capital of:

	At 30 June 2023	At 31 December 2022
	USD	USD
Share capital	53,283,415	53,283,415
Issued capital comprises:	Number	Number
Fully paid ordinary shares	31,451,538	31,451,538
	Number of shares	Share capital, USD
Balance at 31 December 2022	31,451,538	53,283,415
Balance at 30 June 2023	31,451,538	53,283,415

There have been no changes to the Company's ordinary share capital between 30 June 2023 and the date of approval of these financial statements.

14      Related party transactions

The Company's Directors receive fees and bonuses from the Company, details of which can be found in Note 6.

 

END