TIDMTMT

RNS Number : 2883J

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            +44 370 707 4040 
 Alexander Selegenev            (Computershare - Company Secretary) 
 Executive Director             alexander.selegenev@tmtinvestments.com 
 www.tmtinvestments.com 
Strand Hanson Limited 
 (Nominated Adviser) 
 James Bellman / James Dance   +44 (0)20 7409 3494 
Cenkos Securities plc 
 (Joint Broker) 
 Ben Jeynes                    +44 (0)20 7397 8900 
Hybridan LLP 
 (Joint Broker) 
 Claire Louise Noyce           +44 (0)20 3764 2341 
Kinlan Communications          +44 (0)20 7638 3435 
 David Hothersall               davidh@kinlan.net 
 

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      Write-down       Reduction as           Reasons for write-down 
    Company       amount (US$)    % of fair value 
                                    reported as 
                                  of 31 Dec 2022 
                                                    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 
   Backblaze       6,529,412           28%           in Backblaze in 2021) 
                --------------  -----------------  ----------------------------------- 
                                                    Business negatively affected 
                                                     by the current market conditions 
    Bafood         1,875,000           75%           and exposure to Ukraine 
                --------------  -----------------  ----------------------------------- 
    Rocket 
     Games 
    (Legion 
     Farm)         1,650,000           100%         Under review 
                --------------  -----------------  ----------------------------------- 
                                                    Business negatively affected 
   Conte.ai                                          by the current market conditions 
  ( Postoplan                                        (figures also include foreign 
       )           1,212,146           74%           exchange effect) 
                --------------  -----------------  ----------------------------------- 
                                                    The company is changing its 
                                                     business model due to significant 
  Metrospeedy       500,000            50%           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 EUR150,000 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 GBP45,861 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             For the 
                                                            six months          six months 
                                                      ended 30/06/2023    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                        At 31 December 
                                                       2023                                  2022 
                                                        USD                                   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    For the six 
                                                        months ended   months ended 
                                                          30/06/2023     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 MONTHSED 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                                         Average 
                                                rate, for 
                                               six months 
                        At 30/06/2023    ended 30/06/2023 
-----------------      --------------  ------------------ 
 British pounds, 
  GBP                          1.2714              1.2332 
 Euro, EUR                     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                          Cayman                                            United 
  30/06/2023           USA     Islands         BVI      Estonia      Cyprus      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 
-------------  -----------  ----------  ----------  -----------  ----------  -----------  ----------  --------  ------------ 
 
 
                                 Cayman                                            United 
                        USA     Islands         BVI      Estonia      Cyprus      Kingdom   Portugal         Total 
-------------- 
 As at                                                                                USD 
  31/12/2022            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 US 73,001,213 ) 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   At 31 December 2022 
                                                                       USD                   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   At 31 December 2022 
                                                USD                   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:

 
                                    Investment 
 Company name                       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: 
 
                                                                         Gain/(loss) 
                                                                                from 
                                                                             changes 
                                               Additions                     in fair 
                                     Value     to equity   Conversions         value 
                                        at   investments          from     of equity                                     Value 
                        Date         1 Jan        during          loan   investments                                     at 30   Equity 
 Investee         of initial         2023,   the period,        notes,             ,    Disposals,   Write-offs,    June 2023,    stake 
  company         investment           USD           USD           USD           USD           USD           USD           USD    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       Date of     Value at     Additions    Conversions   Gain/(loss)   Disposals,   Value at    Term,   Interest 
   company        initial       1 Jan         to         from loan       from          USD        30 Jun     years   rate, % 
                investment      2023,     convertible   notes, USD    changes in                 2023, USD 
                                 USD         note                     fair value 
                                          investments                     of 
                                          during the                  convertible 
                                          period, USD                 notes, USD 
 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: 
 
                                                                             Gain/loss 
                                                                          from changes 
                                                Additions                      in fair 
                                                  to SAFE                     value of 
                       Date of   Value at 1   investments   Conversions           SAFE                                Value at 
 Investee              initial    Jan 2023,    during the    to equity,   investments,   Disposals,   Write-offs,      30 June 
 company            investment          USD   period, USD           USD            USD          USD           USD    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.

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August 15, 2023 02:00 ET (06:00 GMT)

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