REG - StreaksAI PLC - Interim results
18/11/2024 07:00
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RNS Number : 5011M StreaksAI PLC 18 November 2024
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. (http://www.playstreaks.com/) For more information on the
Conversational AI product, please visit www.streaks.ai.
(http://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 6 month period ended 31 Aug 2023 12 month period
ended 31 Aug 2024 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 9(th) 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
29(th) 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 1(st) 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 Unaudited At Audited At
31 Aug 2024 31 Aug 2023 29 Feb 2024
Loss for the year from continuing operations (383) (925) (1,575)
(£'000)
Weighted average number of ordinary shares in 378,732,535 378,317,101 378,523,683
issue
Basic and diluted earnings per share for (0.10) (0.24) (0.42)
continuing operations (pence)
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 Unaudited period Audited period
ended 31 Aug ended 31 Aug ended 29 Feb
2024 2024 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 Unaudited period Audited period
ended 31 Aug ended 31 Aug ended 29 Feb
2024 2024 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 Share Share Total
Shares Capital Premium
# £ £ £
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.
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