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Coinsilium Group Limited (COIN)

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Friday 27 September, 2019

Coinsilium Group Limited

INTERIM FINANCIAL STATEMENTS TO 30 JUNE 2019

Coinsilium Group Limited (COIN)
INTERIM FINANCIAL STATEMENTS TO 30 JUNE 2019

27-Sep-2019 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


27 September 2019

 

COINSILIUM GROUP LIMITED

 

("Coinsilium" or the "Company")

 

 

UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2019

 

 

Coinsilium Group Limited ("Coinsilium" or the "Company"), the blockchain venture builder and investor that finances and manages the development of early-stage blockchain technology companies, is pleased to announce its unaudited consolidated interim financial statements for the six months ended 30 June 2019.

 

Now in its fourth year of operations as a listed company, the Directors remains focused on delivering its vision of providing retail investors with exposure to a diverse range of high-quality, carefully profiled opportunities in the fast evolving blockchain technology sector. 

 

 

Corporate Highlights:

 

  • Wholly owned Gibraltar registered subsidiary, Coinsilium (Gibraltar) Limited, incorporated;

 

  • Advisory services provided in relation to OASISBloc's presale and Initial Exchange Offering ("IEO"); and

 

  • The Times Group, India's largest Media group, agrees investment of up to US$6.5m in Coinsilium Investment portfolio company, Indorse, including an initial investment of US$2m as a convertible note, with a valuation of US$15 million with an option of a further US$4.5m. Investment is being used for Indorse's expansion into India and to build demand for its services through The Times Group's 360-degree media assets in India, which rank among the most popular titles in the country. Based on The Times Group investment at a valuation of USD $15m, the implied value of Coinsilium's 10% shareholding in Indorse is USD $1.5m, representing a 350% uplift in the two years since Coinsilium's initial investment at the pre-seed and seed stage.

 

Commenting, Malcolm Palle, Chairman of Coinsilium, said: "The period under review was a time of significant transition for Coinsilium, particularly with the relocation of the Company's core operations to Gibraltar, which occurred during the first three months of the year. Despite less than favourable market conditions for the first half of this period, it was pleasing to see that by the close, a sector-wide recovery was well underway, with the industry also regaining much of its previous momentum.

 

"We are witnessing the blockchain industry's move toward maturity and as such, Coinsilium is proud to be advising, and investing in what we believe are solutions which will unleash the benefits of blockchain technology to society at large. In particular, we believe our work with IOV Labs provides an exciting market opportunity as the RSK blockchain and the RSK Infrastructure network (RIF) will become the backbone of numerous highly useful decentralised applications (dApps) across various sectors.

 

"Across the Company's investing, venture building and advisory services divisions, we look forward to the future with confidence. Finally, the Board would like to once again thank all shareholders, partners and team members for their continued support."

 

 

Financial Highlights:

 

  • Revenue for the period of £108,967 (H1 2018: £1,333,515) - the decrease attributable to the fees generated from Token Advisory Services;

 

  • Profit for the period from continuing operations £237,787 (H1 2018: profit of £554,605);

 

  • Profit per share of £0.002 (H1 2018: profit per share of £0.005);

 

  • Financial assets at fair value at profit or loss of £1.69m at 30 June 2019 (31 December 2018: £1.4m);

 

  • Total other current assets £164,945 at 30 June 2019 (31 December 2018: £251,810); and

 

  • As at 30 June 2019, cash and cash equivalents amounted to £475,340 (31 December 2018: £592,171).

 

  • No dividends were paid or recommended to be paid during the period.

 

The directors of the Company accept responsibility for the contents of this announcement.

 

For further information, please contact:

Coinsilium Group Limited

Malcolm Palle, Executive Chairman

Eddy Travia, CEO

+44 (0) 7785 381 089

www.coinsilium.com

 

 

Peterhouse Capital Limited

Guy Miller / Mark Anwyl

(NEX Exchange Corporate Adviser)

+44 (0) 207 469 0930

 

 

SI Capital Limited

Nick Emerson

(Broker)

+44 (0) 1483 413 500

 

 

Yellow Jersey PR

+44 (0) 20 3004 9512

Chris Flame / Dominic Barretto

(PR & IR)

 

 

Outlook

 

We are now seeing a rapid maturation within the industry itself which bodes well for many of our current and proposed new ventures. And as we now look to expand the scope of our global advisory services and venture activities from our Gibraltar base, we are most optimistic that we can now start to develop a sustainable and scalable advisory service offering with the potential to generate reliable recurring revenues, to complement our ongoing token sale advisory services and investment activities.

 

It is also most encouraging to see the growing pace of mainstream awareness for cryptocurrencies and a greater sense of mainstream acceptance, driven in no small part by the media coverage of the likes of Facebook and their partners with the proposed launch of Libra in 2020.

 

The Directors are optimistic that this trend of awareness and acceptance is set to continue, and with the relocation of our core activities to Gibraltar now complete, the Company has a solid base from which to build on this momentum and ensure that the business is well positioned to capitalise on the growth opportunities that lie ahead.

 

 

Post Period Highlights:

 

  •       1 July 2019 - Annual General Meeting of the Company held at 9.30 a.m. all resolutions were duly passed;

 

  •       11 July 2019 - New Strategic Advisory Agreement (the "Agreement"). Coinsilium (Gibraltar) Limited together with StartupToken Limited have signed an Agreement with IOV Labs Limited to support and promote the RSK Smart Contract Network and RSK Infrastructure Framework blockchain solutions in Singapore and the Southeast Asia enterprise markets;

 

  •       29 July 2019 - Appointment as an Advisor to Jur AG ("Jur"). Jur is a Zug-registered company developing a blockchain-based decentralised legal ecosystem, automating the process of contract creation, execution, enforcement and dispute resolution; and

 

  •       2 September 2019 - Investment portfolio company Indorse Pte. Ltd provided the Company with an Operational Update. Highlights included, Strong growth and robust pipeline of new small and large enterprise clients from India and Singapore. Successful delivery of strategic advertising campaigns, mainly through the Economic Times print and online media channels, leveraging the relationship with The Times Group. Distinct product lines and optimised, scalable revenue model established. Material near term revenues targeted with two Fortune 500 companies amongst initial clients. Featured as a sponsor for the prestigious Economic Times Startup Awards 2019.

 

Significant Developments for Coinsilium's Investment Portfolio Companies:

 

Blox

Blox enables users, traders and enterprises to manage and track their cryptocurrency portfolio with pro tools and advanced management features like auto-sync for exchanges and wallets, and daily snapshots of the portfolio balance and activity.

 

Throughout the first half of 2019, the Blox team has continued to on-board business clients paying a monthly subscription to access Blox professional cryptocurrency portfolio management tools. Blox allows companies access to share the workspace with team members, auditors, CFO, and CPA to include all parties involved in accounts, audits or taxes preparations.

 

Bundle Network

In January 2019, Bundle Network reported they had strengthened their collaboration with Istanbul-based startup accelerator RDC Smartup. RDC Smartup had been established by software development company RDC Partner. RDC Smartup's co-founder Onder Uysal joined Bundle Network management team in charge of strategy and business development.

 

In February 2019, Bundle pursued the development of the Beta version of its platform and integrated some of the main cryptocurrency exchanges.

 

In April 2019, the Bundle Network Head of Strategy and Business Development joined the Draper University programme. Draper University is a Silicon Valley-based school for entrepreneurs founded by Tim Draper.

 

Elevate Health

During the first half of 2019, Elevate Health has pursued the development of their proprietary mobile application with programmes to track and assess the changes in lifestyle behaviour of users in preparation for the roll out of a comprehensive pilot program in Southeast Asia and Australia.

 

Programmes developed by Elevate Health include:

 

Unplug: a proprietary smartphone device management tool to integrate with the Elevate Health App, developed for corporations with the aim of reducing daily screen time use by their employees (Facebook, WhatsApp etc) for non work-related purposes and to prevent loss of productivity and attention associated with these habits. Corporations will reward employees for time spent offline via Unplug.

Soberlink: Elevate Health is working with Soberlink, an FDA-cleared Cellular Device which allows the remote detection of alcohol use and incorporates biometric facial recognition for monitoring an individual's sobriety. Potential use cases include, for example, insurance companies and recovery treatment centres. The hardware device interfaces with the Elevate Health mobile phone application. Rewards will be paid to users via the Elevate Health platform following negative results indication if no alcohol was detected by the device.

Quit: Designed to support users to quit smoking. A small and discreet smart device plugs into Quit and is fingerprint protected. The user wears the 'Smokerlyser' and receives random requests to test the CO level showing a difference in the smoking frequency.  The results of the tests are sent and processed automatically by the Elevate Health platform and rewards are paid to the users following negative results indicating a decrease in the smoking frequency.

Coinsilium interest in Elevate Health: 5.0 % of the total equity

Factom

Post period, in August 2019, Factom announced that the Factom Protocol was being leveraged by a new project, the PegNet, that adds payments and store of value utilities to the Factom Protocol.  The PegNet is an independent, open source protocol that delivers 30 protocol backed tokens pegged to real world assets such as the U.S. dollar, Euros and other key fiat currencies as well as hard assets, such as gold, and a number of cryptocurrencies.  According to Factom, the PegNet should increase liquidity and demand for Factom's tokens. PegNet CPU mining went live in August 2019.  

 

Post period, in September 2019, the U.S. Department of Energy ("DOE") granted circa USD200,000 to Factom to protect the national power grid. According to the DOE, the project seeks to protect the security of millions of devices.

 

Coinsilium interest in Factom: 1.06 % of the total equity

 

Indorse

Indorse uses a global network of experts to assess and confirm the abilities, expertise, and achievements of candidates to help companies worldwide find the best tech talent - with an initial focus on the coding sector.


In June 2019, Brand Capital, the strategic investment arm of India's largest media house, The Times Group, agreed to invest up to US$ 6.5m in the Singapore-based skills verification platform Indorse. The investment was to be used for Indorse's expansion into India and to build the demand for its services through The Times Group's 360-degree media assets in India, which rank among the most popular titles in the country. The investment has been structured as a USD $2m convertible note, with a valuation of USD $15 million, with the option of a further tranche of USD $4.5m.

 

Indorse have already worked with both small and large tech companies in finding suitable talent. Most recently, it conducted a tech recruitment event to assess coding and data science candidates for South-East Asia's biggest ride-hailing firm, Grab, through which they processed 2,500 applications.

 

Post period, in August 2019, Indorse sponsored the Economic Times Startup Awards 2019 which rewarded noticeable start-ups in India on the back of these start-ups outstanding performance. Malcolm Palle, Executive Chairman, and Eddy Travia, CEO, were representing Coinsilium at the event in Bangalore.

 

Coinsilium interest in Indorse: 10.0 % of the total equity

 

 

RSK / IOV Labs

In February 2019, IOV Labs announced that the RSK blockchain had become the most secure smart contract platform in the world, and the second most secure blockchain behind the Bitcoin blockchain. As reported by the Crypto51 website, which aggregates data from Mine the Coin, CoinMarketCap, and NiceHash, the cost at the time to execute a 51% attack on Bitcoin cost US$ 244,853. By surpassing 45% of the hashing power of the Bitcoin network, an attack on the RSK Smart Contract Network would cost approximately US$ 112,000 per hour. This made RSK one of the most secure and reliable platforms for developers to build their dApps and proved that merge-mining can succeed in securing Bitcoin sidechains.

 

In April 2019, IOV Labs announced that developers can now launch an RSK Smart Mainnet node on Microsoft's Azure BaaS offering, becoming one of the few public blockchains supported by Microsoft's Blockchain as a Service (BaaS) marketplace. The integration provides a simplified process for setting up an environment that facilitates the development of decentralized applications (dApps) and services supported by the Bitcoin blockchain.

 

In May 2019, IOV Labs announced it has officially launched the RIF Lumino Network as part of the RSK Infrastructure Framework (RIF OS). RIF OS is a suite of open and decentralized infrastructure protocols that enable faster, easier, and scalable development of distributed blockchain applications built atop the RSK Network.

 

The RIF Lumino Network, an integral part of the RIF Payments Protocol, provides scalability without compromising long term sustainability. The RIF Lumino Network is similar to the Lightning Network but provides scalability not only for Bitcoin but for every token running on the RSK Network.

 

The RIF Lumino Network is the second major implementation of RIF OS protocols to be launched on RIF OS since its debut in November 2018.

 

In May 2019, IOV Labs and Monday Capital announced the launch of the first Blockchain Innovation and Development Studio for Bitcoin, RSK and RIF OS in San Francisco and a global Ecosystem Fund. The Studio will create new developer tools that will streamline the integration of decentralized infrastructure. It will be a space of experimentation that facilitates the creation of next-generation blockchain solutions in partnership with startups and corporations in order to identify real-world problems that blockchain-based products and services can solve.

 

The Ecosystem Fund, managed by Monday Capital, a strong supporter of the RIF Ecosystem, will focus on supporting projects around the world that would benefit from RSK/RIF OS technology integration through targeted investments of between $100,000 and $1 million. The Ecosystem Fund will work closely with the Studio to ensure holistic support of the projects.

 

In June 2019, IOV Labs announced a partnership with Swarm, a distributed storage platform and content distribution service, to implement and address the incentivization behaviour of the Swarm network as a whole, including the Ethereum and RSK implementations. As part of the collaboration, they are also jointly developing the first implementation of the concept under RIF Storage services - which will pave the way for a wide array of innovation related to the blockchain storage industry.

 

RIF Storage is a unified interface and set of libraries to facilitate encrypted and decentralized storage and streaming of information. RIF Storage is meant to allow users to store and share all sensitive data in a secure manner. The accounting and payment system will utilize the RSK sidechain, notably including the recently launched Lumino transaction scaling solution. The RIF Storage beta launch integrated with Swarm on RSK is expected to be launched by the end of Q3 2019.

 

In June 2019, IOV Labs announced the launch of RIF Name Service Multi-Crypto which allows users to manage all domains from one master dashboard, streamlining ease of use and fostering blockchain technology mass adoption.

 

A first for the industry, the improved RIF Name Service (RNS) is the only service that supports and manages domains originating from any blockchain. Previously, RNS could only support addresses built on the RSK Network, however, with the new upgrade, domain owners can integrate their domains into the RNS architecture and manage them from one master dashboard, streamlining decentralised domain ownership.

 

RNS simplifies the blockchain Domain Name System (DNS), by turning traditional blockchain domains that appear as a series of randomised letters and numbers into human-readable form, such as a name or an easily remembered word, greatly reducing complexities and errors while opening up blockchain domain accessibility.

 

Coinsilium interest in IOV Labs: Coinsilium shareholding of 65,000 series Seed 1 RSK shares was converted to RIF tokens by way of a 'share for token' swap as announced on 19 November 2018. Coinsilium will receive approximately 1,951,846 RIF tokens over the stated vesting period.

 

 

Financial Review

 

In the period under review revenue for the six months ended 30 June 2019 was £108,967 compared to £1,333,515 for the six months ended 30 June 2018. The decrease is attributable to the fees generated from Token Advisory Services.

 

The Group generated a profit for the six months ended 30 June 2019 from continuing operations of £237,787 which was compared to a profit of £554,605 for the six months ended 30 June 2018.

 

The earnings per share was a profit of £0.002 for the six months ended 30 June 2019 which was compared to a profit of £0.005 per share for the six months ended 30 June 2018.

 

The financial assets at fair value through profit or loss increased to £1.69m at 30 June 2019 and this compared to £1.4m at 31 December 2018.

 

The total other current assets, which is a combination of cryptocurrencies and tokens, amounted to £164,945 at 30 June 2019, which was a decrease from £251,810 on 31 December 2018.

 

Cash and cash equivalents amounted to £475,340 as at 30 June 2019, compared to £592,171 as at 31 December 2018.

 

In summary, given the prevailing market conditions during much of the period under review, the Board are pleased with the Company's profitability and performance during the past six months compared to the full year ended 2018.

 

Corporate

 

TerraStream Limited

Coinsilium's wholly owned Gibraltar-based subsidiary, TerraStream Limited was established with the aim to facilitate the application of blockchain technology for Token based alternative funding solutions with potential applications across several industry sectors; the initial focus being on the mining and resource extraction industries and precious metals in particular.

 

From a regulatory perspective, this business model would likely be considered as 'asset backed' lending and in the Company's Strategic Business Update announced 14 January 2019, the Company highlighted the need for greater regulatory clarity before committing further resources towards TerraStream's development. The Directors are now considering a revised development strategy for TerraStream and in light of the recent improvement in market conditions, early stage discussions with potential industry partners have been initiated. In the event of material developments, further announcements will be made in due course.

 

Flowstone Capital Limited

In October 2018, the company announced the establishment of Flowstone Capital Limited, a 100%-owned private crypto fund registered in Gibraltar. In light of the prevailing market conditions during the period under review, the Directors took the decision to defer seeding and launch of the fund until such time as market conditions improved. Due to the flexible structure the Company has utilised, Flowstone Capital has required minimal funding and management time to maintain. With market conditions improving the Board has been evaluating the necessary requirements for Flowstone's launch. During and post period the Company has received several expressions of interest from parties wishing to collaborate with Flowstone. Further updates will be provided to the market in due course should any of these expressions of interest be pursued. In the meantime, the Board continues to explore alternative models with the aim of maximising shareholder value of Flowstone Capital. 

 

 

Advisory Clients

 

OASISBloc

In June 2019, Coinsilium announced its engagement as advisor to Singapore registered OASISValue Pte. Ltd. ("OASISBloc").

 

OASISBloc, backed by DoubleChain Inc in Korea, is the first blockchainised data platform designed for trading useful data and value in the business world. OASISBloc consists of Oasis Chain and 21 Domain Chains focused on various industries.

 

OASISBloc aims to build a solid ecosystem by gathering partners from many industry sectors to act as a data marketplace. OASISBloc adds extra value to data through AI and big data analysis. The Domain Chains benefit from OASISBloc's value-added services and market data platform. A token ecosystem, with the OSB token at its core, will provide fair rewards to all participants and contributors.

 

The Oasis Chain and the Domain Chains will use the innovative ePOA consensus algorithm (equitable Proof of Authority) to ensure that block generations and verifications are conducted by a selected trusted authority. OASISBloc is developed by Korean blockchain studio Doublechain Inc, a Top 10 Blockchain Technology Solution Provider (as ranked by APAC CIO Outlook), and is led by Mr. William Samgu Chun, pioneer entrepreneur and innovator in blockchain technologies.

 

DIRECTORS' STATEMENT

 

Coinsilium is now in its fourth year of operations as a listed company and the Directors remain focused on delivering its vision of providing retail investors with exposure to a diverse range of high-quality, extensively profiled opportunities in the fast evolving Blockchain technology sector. 

 

The start of 2019 was very much a continuation of the end of 2018, with the Bitcoin price at the start of the period at US$3,730, marking around an 80% fall from its November 2017 peak of just under US$20,000.

 

Whilst the Company's focus remains predominantly on the underlying blockchain technology, the prevailing real-time cryptocurrency price-feed still demonstrates a persistent tendency of dictating global market conditions and sentiment in the sector, for better or worse. Consequently, our operations during the first quarter of the period, particularly with regard to our token sale advisory services, were somewhat constrained by less than favourable global market conditions.

 

By March 2019, the crypto price environment had markedly improved and by June 2019, Bitcoin was once again trading at over US$11,000, marking a 300% rise from the start of the period. With the recovery in cryptocurrency prices, market conditions also started to improve as we saw a resurgence in demand for our token sale advisory services towards the end of the period, with a more pronounced escalation in momentum post period end.

 

There are many lessons to be learned from our experience as advisors in the token economy space where our activities first commenced in 2017. The initial wave of ICO's or 'token sales', drove a high demand for our services more or less from a standing start and we were fortunate enough to be able to capitalise on this throughout 2017 and much of 2018.

 

During this time, we have supported blockchain startups such as Indorse and Blox (formally Coindash) through their ICO process, whilst obtaining material equity stakes in those two companies, which are now rapidly developing into highly promising, revenue generative businesses. We have also been contracted for major advisory roles with some of the largest base-layer blockchain protocols such as RSK, ICON, HDAC and Fantom.

 

Whilst our successful achievements as advisors have helped build a strong global reputation for the Coinsilium brand, our token sale advisory work also presented some material challenges along the way, in terms of scale and sustainability. In addition, there has been an ongoing need to actively manage the wild swings in cryptocurrency prices, which have historically been the main denominator for much of our advisory services revenue.

 

During the period, we also relocated our advisory services division from London to Gibraltar where we have now established a wholly owned operating subsidiary, Coinsilium (Gibraltar) Limited ('CGL'). Gibraltar remains at the forefront of regulatory innovation in the global blockchain and distributed ledger technology ('DLT') industry with many of the largest crypto exchanges, such as Huobi, LMAX and eToroX creating a presence there under Gibraltar's unique DLT regulatory framework. The jurisdiction is also attracting numerous other fintech businesses including multi-currency digital wallet providers, e-money institutions and innovative payment services providers.

 

In this regard, the move of our core operations to Gibraltar has presented CGL with a broader opportunity to expand the scope of our commercial activities beyond the original token sale advisory model to now include more strategic advisory services such as education and business support services to the industry, where we are already pursuing some compelling potentially revenue generative venture opportunities, which will complement our token sale advisory work.

 

An example of this can be seen in the post period announcement of 11 July 2019 where we reported that CGL has joined forces with StartupToken and IOV Labs to accelerate the Southeast Asian adoption of RSK Smart Contract and RSK Infrastructure Framework (RIF OS) Blockchain solutions.  RSK was one of Coinsilium's most successful early stage investments and since its successfully completed private token sale, together with the acquisition of RSK by IOV Labs (formerly RIF Labs) as announced on 19 November 2018, RSK has been hard at work building out its infrastructure to support global adoption of the RIF token, which currently sits as the 75th largest crypto currency globally by market cap. With this agreement, we believe that there is now a significant opportunity for Coinsilium to play an even greater role in RSK's future success by providing support and community development services in RSK's targeted regions for adoption, where Coinsilium also has a strong presence, particularly in Southeast Asia.

 

Another significant highlight during the period was the Company's 19 June 2019 announcement reporting the investment in Indorse by Brand Capital, the strategic investment arm of India's largest media house, The Times Group. The initial investment of USD $2m, via a convertible note, was set at a valuation of USD $15 million, representing an uplift of 350% from Coinsilium's initial investment two years previously. Coinsilium maintains a 10% equity stake in Indorse and was its first investor at the seed stage. It is therefore most gratifying to see its potential now starting to be realised and we fully expect Indorse's rapid growth trajectory to soon be reflected by a material valuation uplift within our portfolio of investments. Shareholders are invited to review the post period Operational update from Indorse announced on 2 September 2019.

 

 

 

Malcolm Palle

Executive Chairman

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF TOTAL

COMPREHENSIVE INCOME

 

 

 

 

Note

6 months to 30 June

 2019

 Unaudited

 6 months to

 30 June

 2018

 Unaudited

 

 

 

£

£

 

 

 

 

 

Revenue from contracts with customers

 

 

108,967

1,333,515

 

 

 

 

 

Cost of sales

 

 

(55,314)

(12,423)

 

 

 

 

 

Gross Profit

 

 

53,653

1,321,092

 

 

 

 

 

Administrative expenses

 

 

(368,560)

(550,341)

 

 

 

 

 

Reversal of impairment to other current assets

 

 

116,267

-

 

 

 

 

 

Net fair value gains/(losses) on financial assets at fair value through profit or loss

 

 

440,922

(216,451)

 

 

 

 

 

 

 

 

 

 

Profit/(Loss) before Income Tax

 

 

242,282

554,301

 

 

 

 

 

 

Financial Income

 

 

375

375

Financial Expenses

 

 

(4,870)

(71)

 

 

 

 

 

Profit/(Loss) for the Period from Continuing Operations Attributable to Owners of the Parent

 

 

237,787

 

___________

554,605

 

___________

 

 

 

 

 

Other Comprehensive Income

 

 

 

 

 

 

 

 

 

Change in fair value of other current assets

 

 

-

(339,815)

 

 

 

 

 

 

 

 

 

 

Total Comprehensive Income for the Period, Attributable to Owners of the Parent

 

 

237,787

214,789

 

 

 

 

 

 

Earnings per Share

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per share attributable to equity holders of the Parent

 

4

0.002

 

0.005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF

FINANCIAL POSITION

 

 

 

 

Note

 

 

As at
 30 June 2019

 

Restated as at
 30 June 2018

 

As at

31 December 2018

 

 

 

Unaudited

Unaudited

Audited

 

 

 

£

£

£

Assets

 

 

 

 

 

 

 

 

 

 

 

Non-Current Assets

 

 

 

 

 

Intangible assets                                                                       

 

 

3,720

6,020

3,720

Property, plant and equipment

 

 

430

748

589

Financial assets at fair value through profit or loss

5                

 

1,695,912

1,372,318

1,362,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,700,062

1,379,086

1,366,509

 

 

 

 

 

 

Current Assets

 

 

 

 

 

Trade and other receivables

 

 

297,891

957,320

240,067

Cash and cash equivalents

 

 

475,340

747,422

592,171

Other current assets

 

 

164,945

728,448

251,810

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

938,175

2,433,190

1,084,048

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

 

2,638,237

 

3,812,276

 

2,450,557

 

 

 

 

 

 

 

 

 

 

 

 

Equity Attributable to Owners of the Parent

 

 

 

 

 

Share capital

 

 

-

-

-

Share premium

 

 

6,369,974

5,995,224

6,369,974

Treasury Shares

 

 

(281,003)

(250,100)

(273,875)

Share option reserve

 

 

101,304

81,275

101,304

Other reserve

 

 

-

173,575

-

Retained losses

 

 

(3,602,398)

(2,303,545)

(3,840,186)

 

 

 

 

 

 

Total Equity Attributable to Owners of the Parent

 

 

2,587,877

3,696,428

2,357,217

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

 

Trade and other payables

 

 

50,360

115,848

93,340

 

 

 

 

 

 

Total Equity and Liabilities

 

 

2,638,237

3,812,276

2,450,557

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF

CHANGES IN EQUITY

 

 

 

Attributable to equity shareholders

 

 

 

Share

Capital

Share

Premium

Treasury Shares

Share Option Reserve

Available for Sale Reserve

Retained losses

Total

 

£

£

£

£

£

£

£

 

 

 

 

 

 

 

 

Balance as at 31 December 2017 as originally presented

-

5,945,225

(78,750)

81,275

687,706

(3,032,466)

3,062,989

 

 

 

 

 

 

 

 

Change in accounting policies

-

-

-

-

(174,316)

174,316

-

Restated as at 1 January 2018

-

5,945,225

(78,750)

81,275

513,390

(2,858,150)

3,062,989

Profit for the period

-

-

-

-

-

554,605

554,605

 

 

 

 

 

 

 

 

Change in fair value of available for sale financial assets

-

-

-

-

(339,815)

-

(339,815)

Total comprehensive income

-

-

-

-

(339,815)

554,605

214,789

 

 

 

 

 

 

 

 

Purchase of treasury shares

-

-

(171,350)

-

-

-

(171,350)

 

Issue of shares

-

50,000

-

-

-

-

50,000

 

 

 

 

 

 

 

 

Balance as at 30 June 2018

-

5,995,224

(250,100)

81,275

173,575

(2,303,545)

3,696,429

Loss for the period

-

-

-

-

-

(1,536,641)

(1,536,641)

 

 

 

 

 

 

 

 

Change in fair value of available for sale financial assets

-

-

-

-

(173,575)

 

(173,575)

 

 

 

 

 

 

 

 

Total comprehensive income

-

-

-

-

(173,575)

(1,536,641)

(1,710,216)

 

 

 

 

 

 

 

 

Issue of shares

-

384,000

-

-

-

-

384,000

Share issue costs

 

(9,250)

-

-

-

-

(9,250)

Purchase/sale of treasury shares

-

-

(23,775)

-

-

-

(23,775)

Share option charge

-

-

-

20,029

-

-

20,029

 

 

 

 

 

 

 

 

Balance as at 1 January 2019

-

6,369,974

(273,875)

101,304

-

(3,840,186)

(2,357,217)

 

 

 

 

 

 

 

 

Profit for the period

-

-

-

-

-

237,787

237,787

 

 

 

 

 

 

 

 

Total comprehensive income

-

-

-

-

-

237,787

237,787

 

 

 

 

 

 

 

 

Purchase of treasury shares

-

-

(7,128)

-

-

 

(7,128)

Balance as at 30 June 2019

-

6,369,974

(281,003)

101,304

-

(3,602,399)

2,587,876

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF

CASH FLOWS

 

 

 

 6 months to

 30 June 2019

 6 months

 to 30 June 2018

Year to 31 December

2018

 

 

 Unaudited

 Unaudited

Audited

 

 

£

£

£

Cash flows from operating activities

 

 

 

 

Profit/(Loss) before taxation

 

237,788

554,605

(982,036)

Adjustments for:

 

 

 

 

Finance costs

 

4,902

-

15,009

Depreciation

 

159

159

2,618

Finance income

 

(375)

-

(968)

Impairment of other current assets

 

-

-

973,147

Net fair value gains/(losses) on financial assets at fair value through profit or loss

 

(333,712)

-

188,780

Non-cash revenue

 

-

-

(1,085,852)

Share based payment

 

-

-

86,904

(Increase)/decrease in trade and other receivables

 

(57,824)

(518,302)

234,953

(Decrease)/increase in trade and other payables

 

(42,980)

28,436

5,928

Net cash generated from/(used in) operating activities

 

 

(192,042)

 

64,898

(561,517)

Cash flows from investing activities

 

 

 

 

Interest received

 

375

-

968

Purchase of available for sale financial assets

Purchase of financial assets at fair value through profit and loss

 

-

(292,961)

-

                 (395,076)

Purchase of other current Assets

 

86,865

(75,953)

-

Decrease/(Increase) in other financial assets

 

 

116,535

(37,277)

Revaluation of available for sale financial assets

Proceeds from disposal of financial assets at fair value through profit or loss

 

-

(339,815)

-

              39,987

Net cash (used in)/generated from investing activities

 

 

87,240

 

(592,195)

 

(391,398)

 

Cash flows from financing activities

 

 

 

 

Finance costs

 

(4,902)

-

(15,009)

Purchase of treasury shares

 

(7,128)

(171,350)

(204,125)

Sale of treasury shares

 

-

-

9,000

Net cash proceeds from issue of shares

 

-

50,000

321,875

Net cash (used in)/generated from financing activities

 

 

 

(12,030)

 

 

(121,350)

 

 

111,741

 

Net increase/(decrease) in cash and cash equivalents

 

 

(116,831)

 

(648,648)

 

(803,898)

Cash and cash equivalents at the beginning of the period/year

 

592,171

1,396,070

1,396,070

Cash and Cash Equivalents at end of Period/Year

 

 

475,340

 

747,422

 

592,171

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTES TO THE INTERIM FINANCIAL

STATEMENTS

 

 

1. Basis of Preparation

The consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2018, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.  As permitted, the consolidated interim financial statements have not been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting'.

 

 

2. Financial Information

The consolidated interim financial statements do not constitute statutory accounts.  They have been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the European Union.  Except as described below, the accounting policies applied in preparing the interim consolidated financial statements are consistent with those that have been adopted in the Group's 2018 audited financial statements.  Statutory financial statements for the year ended 31 December 2018 were approved by the Board of Directors on 31 May 2019.  The report of the auditors on those financial statements was unqualified.

 

Going concern

 

The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, the Directors continue to adopt the going concern basis in preparing the Financial Statements.

 

Risks and uncertainties

 

The key risks that could affect the Group's short and medium term performance, and the factors that mitigate those risks have not substantially changed from those set out in the Group's 2018 Annual Report and Financial Statements, a copy of which is available on the Company's website: www.coinsilium.com.  The Group's key financial risks are liquidity, equity securities price risk and foreign exchange movements.

 

Accounting policies

 

The preparation of consolidated interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the end of the reporting period.  Significant items subject to such estimates are set out in note 4 of the Group's 2018 Annual Report and Financial Statements.  The nature and amounts of such estimates have not changed significantly during the interim period.  The consolidated interim financial statements have been prepared on the historical cost basis, except for the measurement to fair value of certain financial instruments.

 

Changes in accounting policies and disclosures

 

There are no new and amended IFRS standards that are effective for the first time for the financial year commencing 1 January 2019 that would be expected to have a material impact on the Group.

 

The consolidated interim financial statements for the 6 months ended 30 June 2019 and for the 6 months period ended 30 June 2018 have not been reviewed or audited.

 

 

 

3. Directors Remuneration

Directors of the Company received total remuneration of £130,000 for the 6 months ended 30 June 2019 (30 June 2018: £138,000).

 

4. Earnings Per Share

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

 

 

 

 

 Weighted
 average
 number of
 Shares

 

As at 30 June 2019

Profit per Share

As at 30 June 2018

Profit per Share

 

£

 

No.

 

£

£

Basic EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to shareholders

237,787

 

132,664,235

 

0.002

0.005

 

 

 

 

 

 

 

  The Company had no dilutive potential shares during any period. 

 

5. Financial Assets at fair value through profit and loss

At 30 June 2019, the Company owns unlisted shares in:

  • Factom Inc., a company incorporated in the United States;
  • Neuroware.io Inc., a company incorporated in the United States;
  • Helperbit s.r.l, a company incorporated in Italy;
  • StartupToken Limited, a company incorporated in Gibraltar;
  • Elevate Limited, a company incorporated in Gibraltar;
  • Bundle Network Limited, a company incorporated in Malta; and
  • Indorse Pte. Ltd., a company incorporated in Singapore.

6. Dividends

The Directors do not recommend the payment of a dividend.

7.  Changes in accounting policies

IFRS 9 was adopted on 1 January 2018 without restating comparative information. The reclassifications arising were therefore not reflected in the Statement of Financial Position as at 31 December 2017, but recognised in the opening Statement of Financial Position on 1 January 2018.

  1.   Approval of Interim Financial Statements

The interim financial statements were approved by the Board of Directors on 26 September 2019.



ISIN: VGG225641015
Category Code: MSCH
TIDM: COIN
Sequence No.: 21503
EQS News ID: 881181

 
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