Coinsilium Group Limited

Unaudited Interim Results

COINSILIUM GROUP LIMITED

(“Coinsilium” or the “Company”)

UNAUDITED INTERIM RESULTS

26 September 2017

UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2017

Coinsilium, 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 2017.

Financial summary 

* Total Comprehensive Income includes fair value gain on available for sale financial assets

Divestment

Investments

During the period, the Company made its first investments in the emerging Digital Token space.

Coin-Dash Ltd

Indorse Pte. Ltd

Significant Developments in Investee Companies

Factom

RSK Labs

Eddy Travia, CEO of Coinsilium, said:

“The first six months of 2017 have seen the most significant developments for  Coinsilium  where we made our first investments in the emerging Digital Token Space through Coindash and Indorse. The subsequent launch of Terrastream, to develop a token-based alternative funding solution operating in Gibraltar saw us become a venture builder as well as an investor and accelerator in early stage blockchain companies. We believe that we are at the forefront of this exciting market and remain well placed to capitalise on the opportunities it offers and to deliver shareholder value.”  

The Directors of Coinsilium Group Limited take responsibility for this announcement.

For further information, please contact:

Malcolm Palle, Executive Chairman                                                     +44 (0) 7785 381089
Coinsilium Group Limited

Eddy Travia, CEO                                                                                +44 (0) 20 3889 4312
Coinsilium Group Limited

www.coinsilium.com

Harry Chathli / Ana Ribeiro / Alexis Gore                                             +44 (0) 207 618 9100

Luther Pendragon Ltd

(Media Relations)

Guy Miller / Mark Anwyl                                                                       +44 (0) 207 469 0930 
Peterhouse Corporate Finance Limited 
(NEX Exchange Corporate Adviser)

Nick Emerson                                                                                      +44 (0) 1483 413 500
SI Capital Limited
(Broker)
 

OPERATIONAL REVIEW

Strategy

The near term strategic objectives of the Company can be defined as follows:

Corporate Developments

Terrastream Ltd

Post-period, the Company formed Terrastream Limited (“Terrastream”), Coinsilium’s wholly owned subsidiary in Gibraltar. Terrastream aims to build an Enterprise standard blockchain-powered platform for the generation of token-based alternative funding solutions designed to operate in compliance with Gibraltar’s proposed forthcoming Distributed Ledger Technology (‘DLT’) Regulatory Framework.

Gibraltar Finance released a consultation document as part of its process towards establishing this regulatory framework and is set to become the first jurisdiction globally to provide a regulatory framework specifically designed for firms engaging in activities that use DLT for the transmission or storage of value belonging to others (DLT Framework), also covering Blockchain Technologies.

The board believes that the implementation of an effective regulatory framework by Gibraltar marks a crucial step-change for the industry which  we expect to open up the market  to a wider range of institutional investors. The operative date for the regulatory framework is expected to be no later than 1 January 2018 by which time we expect that Coinsilium will have firmly established its presence within the jurisdiction.

The build and development of the Terrastream platform is expected to be funded from the Company’s existing reserves and the proceeds of a proposed non-dilutive Token Generating Event, further details of which will be announced in due course. Gibraltar specialist Law firm ISOLAS has been appointed to advise on Terrastream structure and token sale.

Outlook

The period covered by this report was one of accelerated change and significant activity following the board restructure announced early in the half year. With costs now significantly reduced to a more appropriate level for a growth business of Coinsilium’s size, the board is now refocused on its core objectives and the Company has been repositioned to reflect its original ethos of identifying the early winners in the blockchain revolution and leverage some of the vast array of related opportunities in the sector. The Company has also taken several key strategic decisions regarding its growth and future direction and is now building a strong foundation with recent appointment of a full time Business Development Lead and other key appointments expected to follow.

The Digital Token space has grown rapidly since  2016 with over $1.8b raised by start-ups through various token sales to date . The sector has also been the subject of much media coverage and speculation recently following   various pronouncements from regulatory bodies around the world. .

Despite the current wave of speculation, the board believes that the Digital Token economy holds significant promise and we expect it to become a central focus of Coinsilium’s activities going forward.

The board, in particular CEO Eddy Travia, is in the forefront of this emerging space and he has recently been invited, on behalf of Coinsilium, onto the advisory board of several high profile start-ups in the Digital Token space.  The Company intends to leverage its skills and connections within this growing subset of blockchain technology from where we expect to be able to generate a significant near term revenue stream for the Company.

To summarise, this has been a transitional period of positive change for Coinsilium. The management believes that blockchain technology and the array of potential applications will transform day to day life in the future.  The Company’s early mover advantage into the blockchain space has provided it with invaluable insight, connections and investment opportunities to be leveraged for the benefit of all shareholders.

Malcolm Palle

Executive Chairman

CONSOLIDATED STATEMENT OF TOTAL COMPREHENSIVE INCOME

Note 6 months to 30 June
            2017
   Unaudited
6 months to
       30 June
                2016
   Unaudited
£ £
Revenue 97,895 196,211
Cost of sales (50,465) (36,200)
Gross Profit 47,429 160,011
Administrative expenses (252,476) (309,277)
Impairment - (120,490)
Loss before Income Tax (205,047) (269,756)
Financial Income 5 -
Financial Expenses (337) -
Loss for the Period from Continuing Operations Attributable to Owners of the Parent (205,378)

___________
(269,756)

___________
Other Comprehensive Income
Change in fair value on available for sale financial assets 504,706 -
Change in fair value on other financial assets (9,118) 11,223
Total Comprehensive Income for the Period, Attributable to Owners of the Parent 290,210 (258,533)
Earnings per Share
Basic and diluted earnings per share attributable to equity holders of the Parent 4 (0.002) (0.004)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION


Note
                   
As at
       30 June            2017
                   
As at
       30 June            2016

As at
 December 2016
Unaudited Unaudited Audited
£ £ £
Assets
Non-Current Assets
Property, plant and equipment 695 1,215 1,083
Available for sale financial assets 5 1,610,003 1,668,824 1,069,176
Other financial assets 386,149 258,889 334,456
1,996,847 1,928,928 1,404,715
Current Assets
Other receivables 19,470 35,653 6,274
Cash and cash equivalents 343,908 163,562 99,641
363,378 199,215 105,915
Total Assets 2,360,225 2,128,143 1,510,630
Equity Attributable to Owners of the Parent
Called up share capital - - -
Share premium 4,989,130 4,377,396 4,377,396
Share option reserve 81,275 81,275 81,275
Available for sale reserve 625,006 299,128 129,418
Retained losses (3,359,188) (2,685,502) (3,153,811)
Total Equity Attributable to Owners of the Parent 2,336,223 2,072,297 1,434,278
Current Liabilities
Trade and other payables 24,002 55,846 76,352
Total Equity and Liabilities 2,360,225 2,128,143 1,510,630

  CONSOLDIATED STATEMENT OF CHANGES IN EQUITY

Attributable to equity shareholders

   

Share
Capital
Share
Premium
Share Option Reserve Available for Sale Reserve Retained losses Total
£ £ £ £ £ £
Balance as at 1 January 2016 - 4,377,396 81,275 287,905 (2,415,746) 2,330,830
Loss for the period - - - - (269,756) (269,756)
Fair value gain on other financial assets - - - 11,223 - 11,223
Total comprehensive income - - - 11,223 (269,756) (258,533)
Balance as at 30 June 2016 - 4,377,396 81,275 299,128 (2,685,502) 2,072,297
Balance as at 1 January 2017 - 4,377,396 81,275 129,418 (3,153,811) 1,434,278
Loss for the period - - - - (205,378) (205,378)
Change in fair value of available for sale financial assets - - - 504,706 - 504,706
Change in fair value of other financial assets - - - (9,118) - (9,118)
Total comprehensive income - - - 495,588 (205,378) 290,210
Transaction with owners
Shares issued - 611,734 - - - 611,734
Total transactions with
owners
- 611,734 - - - 611,734
Balance as at 30 June 2017 - 4,989,130 81,275 625,006 (3,359,188) 2,336,223

CONSOLIDATED STATEMENT OF CASH FLOWS

  6 months to 30 June 2017 6 months     to 30 June 2016 Year to 31 December 2016
     Unaudited      Unaudited Audited
£ £ £
Cash flows from operating activities
Loss before taxation (205,378) (269,756) (738,065)
Adjustments for:
Depreciation 388 333 466
Finance income - (64) (77)
Investments settled in shares - (150,438) -
Impairment of available for sale financial assets - 120,490 160,365
Loss on disposal of available-for-sale financial assets - - 316,800
Non-cash revenue - - (129,278)
Share based payment 65,040 - -
(Increase)/decrease in trade and other receivables (13,196) 23,405 52,784
(Decrease)/increase in trade and other payables (52,350) (273,284) (252,777)
Net cash used in operating activities
(205,495)

(549,314)

(589,782)
Cash flows from investing activities
Interest received - 64 77
Purchase of available for sale financial assets (96,932) (186,841) (165,115)
Purchase of other financial assets - (83,331) (170,121)
Purchase of property, plant and equipment - (1,039) (1,041)
Proceeds from disposal of available-for-sale financial assets
-

-

41,600
Net cash used in investing activities
(96,932)

(271,147)

(294,600)
Cash flows from financing activities
Net cash proceeds from issue of shares 546,694 - -
Net cash generated from financing activities

546,694


-



Net increase/(decrease) in cash and cash equivalents

244,267

(820,461)

(884,382)
Cash and cash equivalents at the beginning of the period/year 99,641 984,023 984,023
Cash and Cash Equivalents at end of Period/Year
343,908

163,562

99,641

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 2016, 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 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 2016 audited financial statements.  Statutory financial statements for the year ended 31 December 2016 were approved by the Board of Directors on 31 May 2017.  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 2016 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 2016 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 2017 that would be expected to have a material impact on the Group.

The consolidated interim financial statements for the 6 months ended 30 June 2017 and for the 6 months period ended 30 June 2016 has not been audited.

3.   Directors Remuneration

Directors of the Company received total remuneration of £72,842 for the 6 months ended 30 June 2017 (30 June 2016: £75,833).

4.   Earnings Per Share

Basic earnings per share is calculated by dividing the loss attributable to equity shareholders by the weighted average number of ordinary shares outstanding during the period.

                        Weighted
         average
      number of
           Shares
As at 30 June 2017
Loss per Share
As at 30 June 2016
Loss per Share
£ No. £ £
Basic LPS
Loss attributable to shareholders (205,378)
_______
92,525,457
__________
(0.002)
_____
(0.004)
_____

  The Company had no dilutive potential shares during any period. 

5.   Available For Sale Financial Assets

Total
£
At 1 January 2016 1,452,035

Additions

336,270
Impairment (120,490)
Fair value movement 1,009
At 30 June 2016 1,668,824

Additions

3,385
Disposal (400,000)
Impairment (320,219)
Fair value movement 117,186
At 31 December 2016 1,069,176

Additions

86,171
Disposal (50,050)
Fair value movement 504,706
At 30 June 2017 1,610,003

At 30 June 2017, the Company owns unlisted shares in:

6.   Approval of Interim Financial Statements

The interim financial statements were approved by the Board of Directors on 25 September 2017.