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REG - Iconic Labs PLC - Half-year Report

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RNS Number : 9938U  Iconic Labs PLC  31 March 2023

 

 

ICONIC LABS PLC

 

UNAUDITED INTERIM REPORT

&

ACCOUNTS

 

FOR THE SIX-MONTH PERIOD ENDING 31 DECEMBER 2022

 

 

 

                                                     Pages
 Company Information                                 1

 Chairman's Statement and Director's report          2

 Consolidated Statement of Comprehensive Income

                                                               7

 Consolidated Statement of Financial Position

                                                   8

 Consolidated Statement of Changes in Equity

                                                     9

 Consolidated Statement of Cash Flows                10

 Company Statement of Financial Position             11

 Company Statement of Changes in Equity              12

 Notes to the Consolidated Financial Statements      14

 Directors           David Stybr

                     Bradley Taylor

                     Marija Hrebac

                     Emmanuel Blouin (from 20/02/2023)

 Company secretary   AMBA Secretaries Limited

                     400 Thames Valley Park Drive

                     Reading, Berkshire

                     RG6 1PT

 Company number      10197256

 Registered office   7 Bell Yard

                     London

                     WC2A 2JR

 Accountants         Nordens Limited

                     The Retreat

406 Roding Lane South

Woodford Green, Essex

IG8 8EY

 Solicitor           RWK Goodman

                     69 Carter Lane

                     London

                     EC4V 5EQ

 Brokers             Novum Securities Limited

                     2(nd) Floor, Lansdowne House

                     57 Berkeley Square

                     London

                     W1J 6ER

 Registrar           SLC Registrars Limited

                     Elder House

                     St Georges Business Park

                     Brooklands Road

                     Weybridge

                     Surrey

                     KT13 0TS

 

 

CHAIRMAN'S STATEMENT

FOR THE SIXTH MONTH PERIOD ENDED 31 DECEMBER 2022

 

I am pleased to present the interim unaudited accounts for the six-month
period ended 31 December 2022 for Iconic Labs PLC and its subsidiaries
(together, "Iconic "or the "Company").

 

Details surrounding the appointment of joint administrators on 4 June 2021 and
suspension of the trading of Iconic's shares on 7 June 2021 can be found in
the Audited Annual Report and Accounts for the year ended 30 June 2022.

 

With the administration still in effect on 1 July 2022, the Company continued
(i) negotiating settlements to all outstanding disputes; (ii) finalizing a CVA
with the Joint Administrators and the critical, preferential, secured, and
unsecured creditors; and (iii) agreeing to financing terms with European High
Growth Opportunities Securitization Fund ("EHGOSF") to support the Company
upon exiting from administration. This process took until August 2022.

Under the terms of the 23 August 2022 Settlement Deed, the Company had to
issue £750,000 in convertible notes ("Notes") to EHGOSF and £750,000 in
convertible notes to Linton Capital LLP ("Linton"), which the Company did
pursuant to the terms of the Deed of Issuance and Subscription in respect of
notes convertible into new shares also dated 23 August 2022 (the "Deed of
Issuance").

 

EHGOSF and Linton were each issued 150 Notes with a nominal value of £5,000
per Note. The Notes have a maturity date that is 18 months from the date of
the publication of a prospectus. EHGOSF and Linton can each only convert 15
Notes, or £75,000 in nominal value, per month, for a total of 30 Notes and
£150,000 in nominal value per month. The number of shares to be issued
pursuant to a conversion notice shall be determined as the nominal value
converted divided by the conversion price where the conversion price shall be
the higher of (a) the nominal value of the Iconic shares; or (b) 90% of the
lowest VWAP of the Iconic shares during the 15 trading days preceding the date
of the conversion notice.

 

During the Creditors' Meeting held on 22 September 2022, the unsecured
creditors voted to discount all of their claims against Iconic by 75% and
exchange those claims into new shares at a rate of £0.00016/share resulting
in the necessity of issuing 1,674,130,609 shares to the unsecured creditors
under the CVA. The Company anticipates issuing these shares in the first half
of 2023.

 

On 28 September 2022 Iconic entered into the Financing Facility with EHGOSF.
The Financing Facility can be drawn down in up to 14 sequential tranches over
a maximum period of 18 months and each Note has a duration of 24 months as
from its date of issue.

 

Under the Financing Facility, EHGOSF will provide Iconic with up to £3
million by subscribing for up to 3,000 Notes, each with a par value of
£1,000, convertible into new ordinary shares in the Company, with Warrants
attached.

 

For the period ended 31 December 2022, Iconic had drawn down a total of
£550,000 in three tranches under the Financing Facility (minus £30,000 from
the first tranche of £250,000 for fees to EHGOSF) and issued a corresponding
550 Notes along with warrants.

 

The funds that the Company drew down from EHGOSF were used to meet its
obligations under the CVA as well as pay operational expenses.

 

On 21 October 2022, the first payments due to critical and preferential
creditors under the CVA were paid as scheduled. In addition, on the same day,
the challenge period to the CVA expired without any challenges having been
made. As such, the CVA was final, and the Joint Administrators submitted the
requisite filings with Companies House to this effect.

 

On 29 October 2022, the second payments due to critical and preferential
creditors under the CVA were made as scheduled.

 

On 8 November 2022, the Joint Administrators submitted their Final Report to
Companies House and the High Court of Justice, Business & Property Courts
seeking to exit the administration and return control of the Company to the
Directors.

 

On 28 November, the third payments due to critical and preferential creditors
under the CVA were made as scheduled.

 

On 29 November, Companies House and the High Court of Justice, Business &
Property Courts confirmed and acknowledged the Joint Administrators' Final
Report such that the administration ended, and control of the Company was
returned to the Directors.

 

On 28 December 2022, the fourth payments due to critical and preferential
creditors under the CVA were made as scheduled.

 

Post period end

 

Following, inter alia, the publication of the Company's Audited Annual Report
& Accounts for the years ended 30 June 2021 and 30 June 2022, the
suspension of the listing in the Company's shares was lifted on 24 January
2023 and trading resumed on the main market of the London Stock
Exchange.

 

Between 1 January 2023 and 31 March 2023, the Company has drawn down an
additional £300,000 in two tranches under the Financing Facility and issued a
corresponding 300 Notes along with warrants.

 

Since trading has resumed, EHGOSF has converted £450,000 of Notes under the
Financing Facility resulting in the Company issuing a total of 5,701,668,621
new shares to EHGOSF, or 15.24% of the shares issued and outstanding when the
Company resumed trading. In addition, the Company has also issued
3,458,946,078 warrants to EHGO.

 

On 28 January, the fifth payments due under the CVA were made as scheduled, on
28 February 2023, the sixth payments due under the CVA were made as scheduled,
and final payments of £65,000 shall be made in April at which time the
Company can begin the process of issuing as scheduled. A final payment of
£15,000 is due under the CVA on 28 April 2023 at which time the Company can
begin the process of issuing the 1,674,130,609 shares to the unsecured
creditors thereby meeting all its obligations under the CVA, and the CVA will
then be closed.

 

 

Going Concern Assessment

 

The Board of Directors has carefully considered the financial position of
Iconic Labs regarding the events during the six months ended 31 December 2022,
with particular focus on the new Financing Facility with EHGOSF, its
obligations under the Settlement Deed, and its obligations under the CVA. We
have concluded that Iconic Labs remains a going concern.

 

 

 

 

 

 

PRINCIPAL RISKS AND UNCERTAINTIES FOR THE SIX-MONTH PERIOD

FROM 1 JANUARY 2023 TO 30 JUNE 2023

 

The following risks are considered by the Board to be the most significant to
the business:

 

Revenue and Profitability Risk

 

Iconic has only recently exited administration and remains at an early stage
of development with only one asset, GSN. Since the balance sheet date, it has
had to rebalance all previous activities and is focusing on compliance with
the terms of the CVA.

Company Voluntary Arrangement Risk

While Iconic has exited administration, it continues to have payment
obligations under the CVA that it needs to make and also must issue shares to
the unsecured creditors. In the event the Company's trading is suspended, then
there is a risk that EHGOSF will cease financing, the Company will be unable
to meet its payment obligations under the CVA, and the Company would have to
examine alternative financing strategies or undergo liquidation proceedings
should it not be able to comply with its financial obligations under the CVA.

 

There is also a risk that Iconic will not be able to publish a prospectus such
that it will be able to issue the requisite shares to unsecured creditors
under the CVA.

 

Key Executive Risk

 

Given the wholesale change in the Board of Directors and executive team in
February and March of 2021, coupled with the complexity of the restructuring,
administration, CVA, and relisting processes, there is a risk of Iconic not
being able to retain key executives, which could adversely affect Iconic's
operating and financial performance.

Retaining and motivating key executives, particularly those who worked
diligently with the Joint Administrators, EHGOSF, and the various parties
involved in disputes with the Company, to successfully restructure Iconic is a
critical component of the future success of the business. Without the
participation of these key executives, it is highly unlikely that the
execution of the CVA, continued trading of the Company's shares, financing
with EHGOSF, and implementation of its strategic vision will be implemented.
The departure of any of Iconic's executive officers would have a significant
negative impact on its operations and likely result in the liquidation of
Iconic.

Funding Risk

 

Iconic is at an early stage of development, with only a single asset, and is
not currently profitable. While Iconic has entered into a £3million financing
facility with EHGOSF there are numerous conditions to the financing that if
not met will result in EHGOSF suspending or terminating its financing of the
Company. In the short term, the highest risk affecting this financing from
EHGOSF is getting a prospectus published. In the event the prospectus cannot
be published, the likelihood of future financing from EHGSOF or any other
financing partner will be difficult if not impossible.

 

Market Risk

 

The online media and publishing, technology, artificial intelligence, and data
gathering, processing, and analytics sectors are continually changing and have
a significant amount of competition. Iconic has identified various acquisition
targets, but until such time as the prospectus is published, the CVA
obligations are met, and Iconic's financing situation can correspondingly be
solidified, it is difficult to predict the likelihood of these acquisition
targets remaining interested. Until such time, Iconic will also be materially
affected by the actions of competitors, partners and suppliers. As a Company
at an early stage of development, Iconic's competitors could offer superior
scale and put pressure on prices which could affect Iconic's revenues and
profit margins.

 

 

Global Economic Risk

 

The online media and publishing, technology, artificial intelligence, and data
gathering, processing, and analytics sectors are susceptible to adverse
developments in the global economy and particularly the UK economy where
Iconic is located. The continued uncertainty over Brexit and risk of COVID
resurging, for example, may continue to delay spending by potential clients
which may have a negative effect on the demand for services which could affect
Iconic's revenues.

 

Potential Unrecorded Legacy Liabilities

 

As evidenced by the administration and disputes involving various key parties,
there were significant legacy issues that predated the new management's
arrival when they took control of the business. Following the exit from
administration and the entering into of confidential settlement agreements
with various parties, it is highly unlikely that there are any material
unknown liabilities of Iconic.

 

Financial Risk Management

 

The Board monitors the internal risk management function across Iconic and
advises on all relevant risk issues. There is regular communication with
internal departments, external advisors and regulators. Iconic's policies on
financial instruments and the risks pertaining to those instruments are set
out in the accounting policies in note 1 of the financial statements.

 

 

 

CHAIRMAN'S STATEMENT AND DIRECTORS' REPORT

The directors present their report together with the unaudited interim
financial statements of Iconic Labs PLC and its subsidiaries for the period
ending 31 December 2022.

Directors

The Directors as of 31 December 2022 were:

Brad Taylor

David Stybr

Marija Hrebac

 

Directors' Responsibilities

The directors are responsible for preparing the directors' report and the
financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each
financial period.  Under that law, the directors have elected to prepare the
financial statements in accordance with International Financial Reporting
Standards ("IFRS") as adopted by the United Kingdom.  The financial
statements are required by law to give a true and fair view of the state of
affairs of the Company and the Group and of the Group's results for that
period.

In preparing these financial statements, the directors are required to:

·      select suitable accounting policies and then apply them
consistently;

·      make judgments and estimates that are reasonable and prudent;

·      state whether the financial statements comply with IFRS as
adopted by the United Kingdom; and

·      prepare the financial statements on the going-concern basis
unless it is inappropriate to presume that the Group and Company will continue
in business.

The directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Group's and Company's transactions and
disclose with reasonable accuracy at any time the financial position of the
Group and enable them to ensure that the financial statements comply with the
Companies Act 2006.  They are also responsible for safeguarding the assets of
the Group and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.

 

 

Bradley Taylor

On behalf of the Board

Date 31th of March 2023

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDING 31 DEC 2022

 

                                                                             Notes       Period ending 31 Dec 2022              Year ended 30 June

                                                                                         £                                      2022

                                                                                                                                £
 Continuing operations
 Revenue                                                                                 -                                      26,823

 Gross profit                                                                            -                                      26,823

 Administrative expenses                                                     6           (658,969)                              (203,930)
 Direct costs in connection with EHGOF financing facility                                -                                      (585,000)
 Creditors write off                                                                     6,139,324                              -

 Operating profit                                                                        5,480,355                              (762,107)

 Finance costs                                                                           -                                      -

 Profit before taxation                                                                  5,480,355                              (762,107)

 Taxation                                                                                -                                      -
 Profit for the period from continuing operations                                        5,480,355                              (762,107)

 Profit for the period from discontinued operations                                      -                                      -

 Profit for the period                                                                   5,480,355                              (762,107)

 Total comprehensive Profit for the period                                               5,480,355                              (762,107)

 Profit per ordinary share
 Basic and diluted

 -       from continuing operations                                                      (0.00)                                 (0.00)

 -       from discontinued operations  (please calculate)                                (0.00)                                 (0.00)

 The loss for the year and total comprehensive loss for the year are wholly
 attributable to the equity holders of the parent.

 CONSOLIDATED STATEMENT OF FINANCIAL POSITION                                                Period ending 31 Dec 2022      30 June

 AS AT PERIOD ENDING 31 DEC 2022                                                             £                              2022

                                                                                                                            £
                                                                                  Notes
 Assets

 Non-current assets
 Intangible assets                                                                           1                              1
 Total non-current assets                                                                    1                              1

 Current Assets
 Trade and other receivables                                                                 -                              -
 Cash and cash equivalents                                                                   92,894                         5
                                                                                             92,894                         5

 Total assets                                                                                92,895                                         6

 Equity
 Share capital                                                                    3          4,450,506                      4,450,506
 Share premium                                                                               7,900,778                      7,900,778
 Retained deficit                                                                            (15,809,449)                   (21,289,804)
                                                                                             (3,458,165)                    (8,938,520)

 Liabilities
 Current liabilities
 Trade and other payables                                                         4          2,051,059                      6,523,526
 Loans and borrowings                                                                        1,500,000                      2,415,000
 Provisions                                                                                  -                              -
                                                                                             3,551,059                      8,938,526
 Total liabilities                                                                           3,551,059                      8,938,526

 Total equity and liabilities                                                                92,895                         6

 

 

The financial statements of Iconic Labs plc were approved by the Board and
authorised for issue on 31th of March 2023.  They were signed on its behalf
by:

 

 

 

………………………………………

Bradley Taylor

Director

 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 FOR THE PERIOD ENDING 31 DECEMBER 2022

                                              Share      Share premium   Retained deficit   Total

capital
£

£                         £                  Equity

£

 Balance at 30 June 2022                      4,450,506  7,900,778       (21,289,804)       (8,938,520)

 Loss for the year                            -          -               5,480,355          5,480,355
 Total comprehensive loss for the year

                                              -          -               5,480,355          5,480,355
 Transactions with owners:

 Balance at 31 December 2022                  4,450,506  7,900,778       (15,809,449)       (3,458,165)

 

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDING 31 DECEMBER 2022

 

                                                                                                                                                                                                                                     Notes                Year ended                                Year ended

                                                                                                                                                                                                                                                          31 December                               30 June

                                                                                                                                                                                                                                                          2022                                      2022

                                                                                                                                                                                                                                                          £                                         £
 Cash flows from operating activities
 Total comprehensive gain/(loss) for the period                                                                                                                                                                                                           5,480,355                                 (762,107)

 Prior year adjustments
 Loss from discontinued operations                                                                                                                                                                                                                        -                                         -
 Loss from sale of tangible assets                                                                                                                                                                                                                        -                                         -
 Depreciation                                                                                                                                                                                                                                             -                                         -
 Finance costs                                                                                                                                                                                                                                            -                                         -
                                                                                                                                                                                                                                                          5,480,355                                 (762,107)

 Decrease/(increase) in trade and other receivables                                                                                                                                                                                                       -                                         103,126
 (Decrease)/increase in trade and other payables                                                                                                                                                                                                          (4,992,466)                               642,057

 (Decrease)/increase in provisions                                                                                                                                                                                                                                                                            (34,000)

 Operating cash flows used by continuing activities                                                                                                                                                                                                       487,889                                   (50,924)
 Operating cash flows generated from/(used by) discontinued operations                                                                                                                                                                                                       -                      -
 Net cash used in operating activities                                                                                                                                                                                                                                       487,889                (50,924)

 Cash flows from financing activities
 Interest paid                                                                                                                                                                                                                                                               -                      -
 Repayment of leases                                                                                                                                                                                                                                                         -                      -
 Repayment of loans and borrowings                                                                                                                                                                                                                                           (915,000)              -
 Issue of share capital                                                                                                                                                                                                                                                      -                      -
 Cost of issuing share capital                                                                                                                                                                                                                                               -                      -
 Issue of loans                                                                                                                                                                                                                                                              520,000                -
 Financing cash flows from continuing activities                                                                                                                                                                                                                             (395,000)              -
 Financing cash flows used by discontinued operations                                                                                                                                                                                                                        -                      -
 Net cash flows from financing activities                                                                                                                                                                                                                                    (395,000)              -

 Net increase/(decrease) in cash and cash equivalents                                                                                                                                                                                                                        92,889                 (50,924)

 Cash and cash equivalents at beginning of period

                                                                                                                                                                                                                                                                             5                      50,929
 Cash and cash equivalents at period end                                                                                                                                                                                                                                     92,894                 5

 

 

 COMPANY STATEMENT OF FINANCIAL POSITION         Notes      Period ending 31 Dec 2022      30 June

2022
 FOR THE PERIOD ENDING 31 DECEMBER 2022                     £
£

 Non-current assets
 Intangible Assets                                          1                              1
 Investments                                                2                              2
 Non-current assets                                         3                              3

 Current assets
 Trade and other receivables                                -                              -
 Cash and cash equivalents                                  92,894                         -
                                                            92,894                         -

 Total assets                                               92,897                         3

 Equity
 Share capital                                   3          4,450,506                      4,450,506
 Share premium                                              7,900,778                      7,900,778
 Retained deficit                                           (15,809,449)                   (21,289,344)
                                                            (3,458,165)                    (8,938,059)

 Current liabilities
 Trade and other payables                        4          2,051,062                      6,523,062
 Loans and borrowings                                       1,500,000                      2,415,000

                                                            3,551,062                      8,938,062
 Total liabilities                                          3,551,062                      8,938,062

 Total equity and liabilities                               92,897                         3

 

 

 

The financial statements of Iconic Labs plc, company number 10197256, were
approved by the Board and authorised for issue on 31th of March 2023. They
were signed on its behalf by:

 

 

…………………………………………

Bradley Taylor

Director

 COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDING 31 DECEMBER 2022

                                                                                Share      Share premium   Retained deficit   Total

capital
£

£                         £                  Equity

£

 Balance at 30 June 2022                                                        4,450,506  7,900,778       (21,289,344)       (8,938,060)

 Loss for the year                                                              -          -               5,479,895          5,479,895
 Total comprehensive loss for the year

                                                                                -          -               5,479,895          5,479,895
 Transactions with owners:

 Balance at 31 December 2022                                                    4,450,506  7,900,778       (15,809,449)       (3,458,165)

 

 

 

 

   Page 12

 

 

 

 

 

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDING 31 DECEMBER 2022

 

 

1.    Basis of preparation

The Company is registered in England and Wales. The consolidated interim
financial statements for the six months ended 31 December 2022 comprise those
of the Company and subsidiaries.

 

Statement of compliance

This consolidated interim financial report has been prepared in accordance
with the measurement principles of IFRS adopted in the EU. Selected
explanatory notes are included to explain events and transactions that are
significant to an understanding of the changes in financial performance and
position of the Company since the last annual consolidated financial
statements for the period ended 30 June 2022. This consolidated interim
financial report does not include all the information required for full annual
financial statements prepared in accordance with International Financial
Reporting Standards. The financial statements are unaudited and do not
constitute statutory accounts as defined in section 434(3) of the Companies
Act 2006.

 

A copy of the audited annual report for the period ended 30 June 2022 has been
delivered to the Registrar of Companies. The auditor's report on these
accounts was unqualified and did not contain statements under s498(2) or
s498(3) of the Companies Act 2006.

 

This consolidated interim financial report was approved by the Board of
Directors on 30 March 2023.

 

Significant accounting policies

The accounting policies applied by the Company in this consolidated interim
financial report are the same as those applied by the Company in its
consolidated financial statements for the period ended 30 June 2022.

 

New and amended standards adopted by the Company

A number of new or amended standards became applicable for the current
reporting period. The Company did not have to change its accounting policies
or make retrospective adjustments as a result of the adoption of these
standards.

 

                Going concern

The Board of Directors has carefully considered the financial position of
Iconic Labs regarding the events during the six months ended 31 December 2022,
with particular focus on the continuation in management and leadership as well
as the economic and social effects of the current Covid-19 pandemic. We have
concluded that as a result of the new financing facility in place with EHGOSF
as well as substantial discussions with EHGOSF to secure a long-term financing
facility, Iconic Labs remains a going concern.

 

 

2.     Operating segments

The Company's sole asset is Gay Star News ("GSN"), an online media platform
dedicated to the LGBTQ+ community. The Company is continuing to develop GSN
with strategic partners.

Iconic operates in the online social media and publishing sectors and to
complement its existing asset, is seeking acquisition targets in the
technology, artificial intelligence, and big data gathering, processing and
analytics sectors.

 

 ICONIC LABS PLC

 NOTES TO THE FINANCIAL STATEMENTS

 FOR THE PERIOD ENDING 31 DECEMBER 2022

 

 

3.    Share Capital

 

                                                                                31 Dec 2022                                                 30 June 2022
                                                             Number                     £                          Number                           £
 Authorised, allotted and fully paid - classified as equity
 Ordinary shares of £0.00001 each                            37,405,248,039             374,052                    37,405,248,039                   374,052
 Deferred shares of £0.00249 each                            1,637,129,905              4,076,454                  1,637,129,905                    4,076,454
 Total                                                       39,042,370,944             4,450,506                  39,042,377,944                   4,450,506

At 30 June 2022 and 31 December 2022, the company had 37,405,248,039 Ordinary
shares of £0.00001 in issue.

In accordance with the Companies Act 2006, the company has no limit on its
authorised share capital.

Pursuant to a resolution passed on 16 June 2016, the Company resolved that:

·        The directors be generally authorised in accordance with the
Articles to exercise all powers of the company to allot Ordinary shares, or
grant rights to subscribe for, or convert any security into Ordinary shares,
up to a maximum aggregate nominal value of £500,000, provided always that
such authority conferred on the directors shall (unless previously renewed,
varied or revoked prior to that time) expire at the conclusion of the
company's next annual general meeting or on the date falling 18 months after
the date of the passing of the resolution, whichever is the sooner. The
company may make an offer or agreement which would or might require Ordinary
shares to be allotted pursuant to the resolution referred to in paragraph
3.6.1 of the listing prospectus before the expiry of their authority to do so,
but allot the Ordinary shares pursuant to any such offer or agreement after
that expiry date.

·        All pre-emption rights in the Articles to be waived; (i) for
the purposes of, or in connection with, the Placing, the issue of the
Conversion shares and the issue of the Warrant shares; (ii) generally for such
purposes as the directors may think fit (including the allotment of equity
securities for cash) up to a maximum aggregate amount of £40,543.54; and
(iii) for the purposes of the issue of securities offered (by way of a rights
issue, open offer or otherwise) to existing holders of Ordinary share, but
subject to the directors having a right to make such exclusions or other
arrangements in connection with the offering as they deem necessary or
expedient; (A) to deal with the equity securities representing fractional
entitlements; and (B) to deal with legal or practical problems in the laws of
any territory, or the requirements of any regulatory body; on the basis that
the authorities conferred under the resolution referred to in paragraph 3.6.2
of the listing prospectus shall (unless previously renewed, varied or revoked
prior to that time) expire at the conclusion of the company's next annual
general meeting or on the date falling 18 months after the date of the passing
of the resolution, whichever is the sooner. The company may make an offer or
agreement which would or might require equity securities to be issued before
the expiry of its power to do so, but allot the equity securities pursuant to
any such offer or agreement after that expiry date.

 

 

 

 

Page 14

 

 

4.      Trade and other payables

Group

                       31 Dec 2022  30 June

2022
                       £
£
 Trade payables        1,531,059    809,844
 Other payables        -            5,574,562
 Accruals              -            139,120
 EHGOF Loan payable    520,000      -
 Total                 2,051,059    6,523,526

Book values approximate to fair values at 31 December 2022 and 30 June 2022.

Company

                       31 Dec 2022  30 June

2022
                       £
£
 Trade payables        1,531,059    809,380
 Other payables        -            5,574,562
 Accruals              -            139,120
 EHGOF Loan payable    520,000      -
                       2,051,059    6,523,062

Book values approximate to fair values at 31 December 2022 and 30 June 2022.

Included within liabilities are £1,071,444 of unsecured creditors which are
under CVA proceedings. These are settled in common shares of Iconic Labs in
the ration of 1:0.25. This denotes that 1GBP of liability is settled with
0.25GBP value in shares on 0.00016GBP per share value. These settlements will
be proceeded one the company pays all secured creditors during 2Q 2023.

 

Page 15

 

5.     Financial instruments

 

Reconciliation of movement in net cash

                                                                                                                                     Reduction of borrowings

                                                                     Loan notes issued in the   Loan notes converted in the period   (continuing activities)

                              Net cash at 01 July 2022                period                                                                                   Net cash

                                                         Cash flow                                                                                             at 31 December 2022
                              £                          £           £                          £                                    £                         £

 Cash at bank and in hand     5                          92,889      -                          -                                    -                         92,894
 Borrowings                   (2,415,000)                -           -                          -                                    915,000                   (1,500,000)

 Total financial liabilities  (2,414,995)                92,889      -                          -                                    915,000                   (1,407,106)

 

Page 16

6.            (Profit)/Loss from Operations

                                                             Period ending 31 Dec 2022  Year ended

30 June

2022

                                                             £                          £
 The (profit)/loss for the period is stated after charging:
 Depreciation                                                -                          -
 Auditors remuneration - audit services                      58,725                     50,000

 

 Expenses by nature:                                                £             £
 Legal & audit fees                                                 72,953        (7,102)

 Financial Advisory                                                 7,500
 Consultancy & professional fees                                    515,000       255,254
 Other supplies and external services                               5,251         86,027

 Creditor's write off                                               (6,139,324)
                                                                    -             -
 Total operating expenses                                           (5,479,895)   334,179
 Depreciation, amortisation and impairment of assets                -             -

 Writing down of subsidiary undertakings                            -             (130,249)
 Total administrative expenses                                      (5,479,895)   203,930
 Direct costs incurred in connection with EHGOF financing facility  -             585,000
 Other penalties                                                    -             -
                                                                    (5,479,895)   788,930

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page 17

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