18
November 2024
This announcement contains
information which, prior to its disclosure, was inside information
as stipulated under Regulation 11 of the Market Abuse (Amendment)
(EU Exit) Regulations 2019/310 (as amended). Upon the publication
of this announcement via a Regulatory Information Service, this
inside information is now considered to be in the public
domain.
StreaksAI PLC
("StreaksAI" or "the Company")
Interim results
StreaksAI PLC (LSE: STK), a
UK-based generative AI platform, announces its unaudited financial
results for the six months ended 31 August 2024.
For further information please
contact:
|
StreaksAI PLC
|
|
|
Mike Edwards Interim
CEO
|
via First
Sentinel
+44 20 3855 5551
|
|
Corporate
Broker
|
|
|
Brian Stockbridge (First
Sentinel)
|
+44 20 3855 5551
|
About Streaks:
StreaksAI PLC is a provider of AI
based conversational technologies. The Company offers two core
products in the gaming and conversational AI space.
For more information on the
Conversational Gaming AI product, please visit www.playstreaks.com.
For more information on the Conversational AI
product, please visit www.streaks.ai.
Chairman's Report
Streaks AI plc is a full stack AI-focused technology
company. Having listed in 2023 it has spent the intervening time
developing AI technology in the conversational interface space and
in the automated bot sector. Both of these developments are nearing
completion.
As the Large Language AI models have developed, the
opportunities to utilise these in applications has widened and we
see the penetration of these models and the automated bots that
interface with them only increasing.
As Streaks AI plc is pre revenue we have made
strenuous efforts to minimise discretionary spend in the period so
as to extent the operational runway. All continuing Director fees
were accrued, unpaid during the period. In doing so, the
operational costs incurred in this period are 59% lower than in the
same period last year and is expected to be lower again going
forward. As such, the Board of the Company are of the opinion that
the Company has adequate working capital for the next 12 months. At
the end of the period, the Company had cash of £318,000.
Michael
Edwards
CONDENSED STATEMENT
OF COMPREHENSIVE INCOME FOR THE 6 MONTH PERIOD ENDING 31 AUGUST
2024
|
|
|
Unaudited
|
Unaudited
|
Audited
|
|
|
Period ending 31 Aug 2024
|
Period ending 31 Aug 2023
|
Year ending 29 Feb 2024
|
|
|
Notes
|
£'000
|
£'000
|
£'000
|
|
Continuing Operations
|
|
|
|
|
|
Revenue
|
|
-
|
-
|
1
|
|
Cost of Sales
|
|
-
|
-
|
-
|
|
Gross Profit
|
|
-
|
-
|
1
|
|
Administrative expenses
|
|
(383)
|
(925)
|
(1,513)
|
|
Write down / impairment
|
|
-
|
-
|
(63)
|
|
Operating
loss
|
|
(383)
|
(925)
|
(1,575)
|
|
Finance Income
|
|
-
|
-
|
-
|
|
Finance Costs
|
|
-
|
-
|
-
|
|
Loss before taxation
|
|
(383)
|
(925)
|
(1,575)
|
|
Taxation on loss of
ordinary activities
|
|
-
|
-
|
-
|
|
Loss for the year from continuing operations
|
|
(383)
|
(925)
|
(1,575)
|
|
Other comprehensive
income
|
|
-
|
-
|
-
|
|
Total comprehensive loss for the year
attributable to shareholders from continuing operations
|
|
(383)
|
(925)
|
(1,575)
|
|
Basic & dilutive
earnings per share - pence
|
4
|
(0.10)
|
(0.24)
|
(0.42)
|
The notes on page 6-11 form an integral part of the
condensed interim financial statements.
CONDENSED STATEMENT
OF FINANCIAL POSITION AS AT 31 AUGUST 2024
|
|
|
Unaudited
|
Unaudited
|
Audited
|
|
|
|
As At 31 Aug 2024
|
As At 31 Aug 2023
|
As At 29 Feb 2024
|
|
|
Notes
|
£'000
|
£'000
|
£'000
|
|
NON-CURRENT
ASSETS
|
|
|
|
|
|
Intangible assets
|
5
|
-
|
63
|
-
|
|
TOTAL NON-CURRENT ASSETS
|
|
-
|
63
|
-
|
|
CURRENT ASSETS
|
|
|
|
|
|
Cash and cash equivalents
|
|
318
|
1,032
|
565
|
|
Trade and other
receivables
|
6
|
32
|
79
|
55
|
|
TOTAL CURRENT ASSETS
|
|
350
|
1,111
|
620
|
|
TOTAL ASSETS
|
|
350
|
1,174
|
620
|
|
EQUITY
|
|
|
|
|
|
Share capital
|
8
|
379
|
379
|
379
|
|
Share Premium
|
8
|
4,880
|
4,880
|
4,880
|
|
Share Based Payment
Reserve
|
9
|
704
|
704
|
704
|
|
Retained Earnings
|
|
(5,910)
|
(4,877)
|
(5,527)
|
|
TOTAL EQUITY
|
|
53
|
1,086
|
436
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Trade and other
payables
|
7
|
297
|
88
|
184
|
|
TOTAL CURRENT LIABILITIES
|
|
297
|
88
|
184
|
|
TOTAL LIABILITIES
|
|
297
|
88
|
184
|
|
TOTAL EQUITY AND LIABILITIES
|
|
350
|
1,174
|
620
|
The notes on page 6-11 form an integral part of the
condensed interim financial statements.
The condensed interim financial statements were
approved and authorised by the Board of Directors on 14 November
2024 and were signed on its behalf by:
Nicholas Lyth
Director
CONDENSED STATEMENT
OF CHANGES IN EQUITY FOR THE 6 MONTH PERIOD ENDING 31 AUGUST
2024
|
|
Share
Capital
|
Share
Premium
|
Share based payment reserve
|
Retained
Earnings
|
Total
Equity
|
|
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
|
Profit (Loss) for
period
|
-
|
-
|
-
|
(925)
|
(925)
|
|
Other comprehensive
income
|
0
|
(0)
|
-
|
-
|
-
|
|
Total comprehensive income
for year
|
-
|
-
|
-
|
(925)
|
(925)
|
|
Transactions with owners in
own capacity:
|
|
|
|
|
|
|
Ordinary shares
issued
|
-
|
-
|
-
|
-
|
-
|
|
Share issue costs
|
-
|
-
|
-
|
-
|
-
|
|
Total transactions with
owners in own capacity
|
-
|
-
|
-
|
-
|
-
|
|
Balance at 31 August 2023
|
379
|
4,880
|
704
|
(4,876)
|
1,087
|
|
Profit (Loss) for
period
|
-
|
-
|
-
|
(651)
|
(651)
|
|
Other comprehensive
income
|
-
|
-
|
-
|
-
|
-
|
|
Total comprehensive income
for year
|
-
|
-
|
-
|
(651)
|
(651)
|
|
Transactions with owners in
own capacity:
|
|
|
|
|
|
|
Ordinary shares
issued
|
-
|
-
|
-
|
-
|
-
|
|
Share issue costs
|
-
|
-
|
-
|
-
|
-
|
|
Total transactions with
owners in own capacity
|
-
|
-
|
-
|
-
|
-
|
|
Balance at 29 February 2024
|
379
|
4,880
|
704
|
(5,527)
|
436
|
|
Profit (Loss) for
period
|
-
|
-
|
-
|
(383)
|
(383)
|
|
Other comprehensive
income
|
-
|
-
|
-
|
-
|
-
|
|
Total comprehensive income
for year
|
-
|
-
|
-
|
(383)
|
(383)
|
|
Transactions with owners in
own capacity:
|
|
|
|
|
|
|
Ordinary shares
issued
|
-
|
-
|
-
|
-
|
-
|
|
Share issue costs
|
-
|
-
|
-
|
-
|
-
|
|
Total transactions with
owners in own capacity
|
-
|
-
|
-
|
-
|
-
|
|
Balance at 31 August 2024
|
379
|
4,880
|
704
|
(5,910)
|
53
|
CONDENSED STATEMENT
OF CASHFLOWS
FOR THE 6 MONTH
PERIOD ENDING 31 AUGUST 2024
|
|
Unaudited
|
Unaudited
|
Audited
|
|
6 month
period
ended 31 Aug 2024
|
6 month
period ended 31
Aug 2023
|
12 month
period
ended 29 Feb 2024
|
|
|
£'000
|
£'000
|
£'000
|
|
Cash flow from operating activities
|
|
|
|
|
Loss for the financial
year
|
(383)
|
(925)
|
(1,576)
|
|
Adjustments for:
|
|
|
|
|
Write down / Impairment
|
-
|
-
|
63
|
|
Services settled by issue
of warrants
|
-
|
-
|
-
|
|
Changes in working capital:
|
|
|
|
|
Decrease / (Increase) in
trade and other receivables
|
23
|
117
|
141
|
|
Increase / (decrease) in
trade and other payables
|
113
|
(229)
|
(133)
|
|
Net cash used in operating activities
|
(247)
|
(1,037)
|
(1,505)
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
Purchase of property, plant
and equipment
|
-
|
-
|
-
|
|
Purchase of intangible
assets
|
-
|
-
|
-
|
|
Net cash flow from investing activities
|
-
|
-
|
-
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
Share issue, net of issue
costs
|
-
|
-
|
-
|
|
Net cash flow from financing activities
|
-
|
-
|
-
|
|
|
|
|
|
|
Net (decrease) in cash and cash equivalents
|
(247)
|
(1,037)
|
(1,505)
|
|
Cash and cash equivalents
at beginning of the period
|
565
|
2,070
|
2,070
|
|
Foreign exchange impact on
cash
|
-
|
-
|
-
|
|
Cash and cash equivalents at end of the
period
|
318
|
1,032
|
565
|
NOTES TO THE
CONDENSED FINANCIAL STATEMENTS FOR THE 6 MONTH PERIOD ENDING 31
AUGUST 2024
1
General information
StreaksAI Plc is a public limited company
incorporated in England and Wales and domiciled in the United
Kingdom. The registered office and principal place of business is
9th Floor, 16 Great Queen Street, London WC2B 5DG. The
Company was incorporated on 19 March 2021.
The Company's principal activity is that of a global
AI-focused software development company, led by a team experienced
in this sector and in the development of technology businesses. It
is based in UK and its shares are listed on the main market of the
London Stock Exchange (ticker:STK).
2
Accounting policies
IAS 8 requires that management shall use its
judgement in developing and applying accounting policies that
result in information which is relevant to the economic
decision-making needs of users, that are reliable, free from bias,
prudent, complete and represent faithfully the financial position,
financial performance and cash flows of the entity.
2.1 Basis of
preparation
The condensed interim financial statements ("interim
financial statements") have been prepared in accordance with
International Accounting Standard 34 "Interim Financial Reporting"
(IAS 34) as adopted by the European Union (EU). The interim
financial statements have been prepared on the historical cost
basis, except for assets and liabilities measured at fair value
through profit and loss, and are presented in pounds sterling (£).
All amounts have been rounded to the nearest £'000, unless
otherwise stated.
The interim financial statements have not been
audited. The interim financial statements do not constitute
statutory accounts within the meaning of section 434 of the
Companies Act 2006. The figures have been prepared using applicable
accounting policies and practices consistent with those adopted in
the audited annual financial statements ("annual financial
statements") for the year ended 29th February 2024.
The interim financial
statements are
for the
six months
to 31
August 2024,
being six
months from
the financial
year end for the Company being 29 February 2024. The interim
financial statements do not include all the information and
disclosures required in the annual financial statements and should
be read in conjunction with the Company's annual financial
statements for the period ended 29 February 2024. The Company has
disclosed comparative data for the period from 1st March
23 to 31 Aug 2023 as required for disclosure by accounting
standards as well as audited figures from the annual financial
statements.
The functional currency for the Company is
determined as the currency of the primary economic environment in
which it operates. Both the function and presentational currency of
the Company Pounds Sterling (£).
The business is not considered to be seasonal in
nature.
New standards, amendments and interpretations
adopted by the Company
During the current period the Company adopted all
the new and revised standards, amendments and interpretations that
are relevant to its operations and are effective for accounting
periods beginning on 1 December 2023. This adoption did not have a
material effect on the accounting policies of the Company.
New standards, amendments and interpretations not
yet adopted by the Company
The standards and interpretations that are relevant
to the Company, issued, but not yet effective, up to the date of
these interim financial statements have been evaluated by the
directors and they do not consider that there will be a material
impact of transition on the financial statements.
2.2 Going
concern
The Company continues to invest in the development
of technology and is prioritising this cost. In light of
constrained resources, the Company has taken steps to reduce its
cash burn, such as deferring Directors fees and terminating
external engagements. As a result, the directors are confident that
the Company has sufficient resources to meet its liabilities for a
period of at least twelve months from approval of the financial
statements and the Directors have therefore adopted the going
concern basis of accounting in the preparation of the annual
financial statements.
2.3 Risks and
uncertainties
The principal risks and uncertainties relevant to
the Company have not changed materially since the release of the
annual financial statements for the period ending 28 February 2024.
These risks can be referenced in the strategic report contained
within the annual financial statements.
3
Critical accounting estimates
and judgements
In the application of the Company's accounting
policies, the directors are required to make judgements, estimates
and assumptions about the carrying amount of assets and liabilities
that are not readily apparent from other sources. The estimates and
associated assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results may
differ from these estimates.
The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised, if the
revision affects only that period, or in the period of the revision
and future periods if the revision affects both current and future
periods. The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are
significant to the financial statements, are disclosed below:
Share
Based Payments
The Company measures the cost of equity-settled
transactions by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value
is determined by using the Black-Scholes model taking into account
the terms and conditions upon which the instruments were granted.
The accounting estimates and assumptions relating to equity-settled
share-based payments would have no impact on the carrying amounts
of assets and liabilities within the next annual reporting period
but may impact profit or loss and equity. There have been no
dilutive instruments issued in the period and the value remains
equal to that in the annual financial statements as at the last
reporting period.
4
Earnings per share
The basic earnings per share is calculated by
dividing the profit/(loss) attributable to equity shareholders by
the weighted average number of shares in issue.
|
|
Unaudited At
31 Aug 2024
|
Unaudited At
31 Aug 2023
|
Audited
At
29 Feb 2024
|
|
Loss for the year from
continuing operations
(£'000)
|
(383)
|
(925)
|
(1,575)
|
|
Weighted average number of
ordinary shares in
issue
|
378,732,535
|
378,317,101
|
378,523,683
|
|
Basic and diluted earnings per share
for
continuing operations (pence)
|
(0.10)
|
(0.24)
|
(0.42)
|
The Company had in issue 82,700,000 warrants and
options at 31 August 2024 (82,700,000 at 31 August 2023). The loss
attributable to equity holders and weighted average number of
ordinary shares for the purposes of calculating diluted earnings
per ordinary share are identical to those used for basic earnings
per ordinary share. This is because the exercise of warrants and
options would have the effect of reducing the loss per ordinary
share and is therefore anti-dilutive.
5
Intangible assets
|
|
Patents
£'000
|
|
Cost
|
|
|
At 29 February 2024
|
-
|
|
At 31 August 2024
|
-
|
|
Accumulated amortisation and impairment
|
|
|
At 29 February 2024
|
-
|
|
Charge for the period
|
-
|
|
At 31 August 2024
|
-
|
|
Net book value at 31 August 2024
|
-
|
|
|
Patents
£'000
|
|
Cost
|
|
|
At 31 August 2023
|
63
|
|
At 29 February 2024
|
63
|
|
Accumulated amortisation and impairment
|
|
|
At 31 August 2023
|
-
|
|
Charge for the period
|
63*
|
|
At 29 February 2024
|
63
|
|
Net book value at 29 February 2024
|
-
|
*The £62,781 Intangible assets in relation to the
acquisition of the business from Flatiron Labs Inc were written off
following the change in direction of the company, as stated in the
Chairman's report in the annual financial statement.
6
Trade and other receivables
|
|
Unaudited
period
ended 31
Aug
2024
|
Unaudited
period
ended 31
Aug
2024
|
Audited
period
ended 29
Feb
2024
|
|
|
£'000
|
£'000
|
£'000
|
|
Prepayments
|
18
|
79
|
35
|
|
VAT
|
14
|
-
|
20
|
|
Total trade & other receivables
|
32
|
79
|
55
|
7
Trade and other payables
|
|
Unaudited
period
ended 31
Aug
2024
|
Unaudited
period
ended 31
Aug
2024
|
Audited
period
ended 29
Feb
2024
|
|
|
£'000
|
£'000
|
£'000
|
|
Trade creditors
|
206
|
44
|
120
|
|
Accruals
|
91
|
39
|
57
|
|
Social security and other
taxation
|
-
|
5
|
6
|
|
Other payables
|
-
|
-
|
1
|
|
Total trade & other receivables
|
297
|
88
|
184
|
The directors consider that the carrying value of
trade and other payables is approximately equal to their fair
value.
8
Share capital and share premium
|
|
Ordinary
Shares
|
Share
Capital
|
Share
Premium
|
Total
|
|
|
#
|
£
|
£
|
£
|
|
At 28 February 2024
|
378,732,535
|
378,733
|
4,879,991
|
5,258,724
|
|
|
|
|
|
|
|
At 31 August 2024
|
378,732,535
|
378,733
|
4,879,991
|
5,258,724
|
9
Share
based payments
and other
reserves
The following warrants over ordinary shares have
been granted by the Company and are outstanding at 31 August
2024:
|
|
Number of Warrants
|
Exercise
Price
|
Expiry date
|
|
On incorporation
|
-
|
-
|
-
|
|
Issued on 18 October
2021
|
26,700,000
|
£0.01
|
17 Oct 2024
|
|
Issued on 5 January
2023
|
45,499,000
|
£0.06
|
4 Jan 2026
|
|
Issued on 5 January
2023
|
4,501,000
|
£0.06
|
4 Jan 2026
|
|
Issued on 5 January
2023
|
6,000,000
|
£0.03
|
4 Jan 2026
|
|
At 31 Aug 2024
|
82,700,000
|
|
|
There were no dilutive instruments issued in the 6
month period ending 31 August 2024.
|
|
As at 31 Aug
2024
£
|
As at 31 Aug
2023
£
|
As at 28 Feb
2024
£
|
|
Share based payments Reserve
|
703,816
|
703,816
|
703,816
|
|
Warrants issued in the period
|
-
|
-
|
-
|
|
Warrants cancelled
in the
period
|
-
|
-
|
-
|
|
Total
|
703,816
|
703,816
|
703,816
|
The fair value of the share warrant rights granted
are valued using the Black-Scholes option pricing model. The option
pricing model assumptions can be referenced in the annual financial
statements.
10
Financial commitments &
contingent liabilities
There were no capital commitments or contingent
liabilities pertaining to the Company at 31 Aug 2024.
11
Related party transactions
The company made payments to the following companies
in relation to directors' fees:
|
Period 1 Mar to 31 Aug 2024
£
|
Period 1 Mar to 31 Aug 2023
£
|
Year ended 28 Feb 2024
£
|
|
Carraway Capital Corp - Mr
Mark Rutledge
|
nil
|
30,000
|
48,000
|
|
Dark Peak Services Ltd - Mr
Nicholas Lyth
|
nil
|
18,000
|
30,000
|
|
Marallo Holdings Inc - Mr
Michael Edwards
|
nil
|
48,000
|
96,000
|
|
Infinity Growth Digital
Inc. - Mr David Raphael
|
41,000
|
45,000
|
90,000
|
|
|
41,000
|
141,000
|
264,000
|
12
Events subsequent to period end
There were no material events subsequent to period
end that require disclosure.