Supernova Digital - Interim results
31/07/2024 07:00
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RNS Number : 4776Y Supernova Digital Assets PLC 31 July 2024
31 July 2024
Supernova Digital Assets PLC
("Supernova" or the "Company")
Interim results
Supernova (AQSE: SOL), a company specialising in the Solana ecosystem, is
pleased to announce its unaudited financial results for the six months ended
30 April 2024.
The Directors of Supernova take responsibility for this announcement.
For further information please contact:
Supernova Digital Assets
Mike Edwards +44 7858 888 007
Executive Chairman
First Sentinel
Corporate Adviser +44 7876 888 011
Brian Stockbridge
About Supernova Digital Assets:
The Company will look to identify investment and business building
opportunities in the high growth Solana and crypto currency ecosystem. The
Board intends to deploy the majority of the Company's cash resources in the
acquisition of minority interests in a number of different, yet to be
identified, companies in the broad Solana and crypto currency ecosystem, and
to apply expertise to the business operations and strategic plans of these
companies. The experience, operational skills and contacts of the Board are
intended to act as an accelerator to start-ups and early-stage companies to
maximise their profit opportunity. It is anticipated that returns to
Shareholders will be delivered through a combination of an appreciation in the
Company's share price and through the adoption of a progressive dividend
policy. The Company's Directors have an established track record, experience
and networks in the crypto currency sector, digital assets management, as well
as the media industry to drive value creation.
Executive Chairman's statement
For the six month's ended 30 April 2024
During the course of the year ending 31 October 2023 the Board of Directors of
the Company decided that best interests were served by divesting a number of
non-core businesses and focusing on the Solana cryptocurrency ecosystem. It is
the Board's opinion that Solana ("SOL") will be integral to the success of the
crypto environment and there will be an increasing level of development of
system architecture that sits on the Solana ecosystem.
The Board believes there are considerable value accretive opportunities
available in the Solana cryptocurrency ecosystem and, during the six month
period to 30 April 2024, the Company sold its Ethereum position and invested
the proceeds into SOL. This resulted in the Company holding a SOL balance at
30 April 2024 of 27,778 tokens with a valuation on that date of US$3.8m. As at
30 July 2024 this SOL balance is valued at US$5.0m.
The Company acquired Hyperslot PTE Limited, a Solana Validator on 18 March
2024. This is a strategic transaction in that it allows the Company to stake
its SOL "in-house" and thus retain all staking rewards. These rewards are
expected to be approximately 1,900 SOL per year and, as such, much of the
Company's slimmed-down operating costs will be met by this.
In addition, the Company has 30,000,000 shares in Phoenix Digital Assets plc
("PNIX") (previously called NFT Investments plc). The Company decided not to
participate in the PNIX Tender Offer and, as of today's date, still holds
30,000,000 PNIX shares. The Company also owns 76,332,000 shares in StreaksAI
plc and holds this position so at to have exposure to the burgeoning AI
sector.
Finally, the Company is well advanced with the processes necessary to allow it
to buy back its own shares. The Company recognises that its shares continue to
trade at a significant discount to the Net Asset Value and it will use this
mechanism to return value to shareholders.
Michael Edwards
Executive Chairman
31 July 2024
Statement of Comprehensive Income
Unaudited Audited
Six months ended 30 April Year ended 31 October
Note
2024 2023 2023
£'000 £'000 £'000
Revenue - - -
Fair valuation movement in investments (58) 138 (2,437)
Fair valuation movement in intangible assets - cryptocurrencies 2,224 - -
2,166 138 (2,437)
Other operating income 25 93 128
Profit/(loss) on disposal of investments 100 - (3,799)
Administrative expenses (198) (544) (1,034)
Operating Profit/(loss) 2,093 (313) (7,142)
Finance income - 103 171
Profit/(loss) before taxation 2,093 (210) (6,971)
Taxation - - -
Profit/(loss) after taxation 2,093 (210) (6,971)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Gain on cryptocurrencies held 4 - - 264
Total comprehensive profit/(loss) for the period 2,093 (210) (6,707)
Earnings/(loss) per ordinary share:
Basic earnings/(loss) per share 3 0.16p (0.02p) (0.58p)
Diluted earnings/(loss) per share 3 0.16p (0.02p) (0.58p)
Statement of Financial Position
Unaudited Audited
Year ended 31 October
Note Six months ended 30 April
2024 2023 2023
£'000 £'000 £'000
Non-Current Assets
Intangible assets - cryptocurrencies 4 3,194 - 937
Investments 2,113 4,898 1,953
Total non-current assets 5,307 4,898 2,890
Current Assets
Trade and other receivables 7 4,486 47
Cash and cash equivalents 209 140 68
Total current assets 216 4,626 115
Total assets 5,523 9,524 3,005
Shareholders' equity
Share capital 1,603 1,211 1,211
Share premium 9,892 9,817 9,817
Share based payments reserve 923 923 923
Fair value reserve- Cryptocurrencies 503 239 503
Retained earnings (7,430) (2,762) (9,523)
Total shareholders' equity 5,491 9,428 2,931
Current Liabilities
Trade and other 32 96 74
payables
Total current liabilities 32 96 74
Total liabilities 32 96 74
Total equity and liabilities 5,523 9,524 3,005
Statement of Changes in
Equity
Fair value reserve- Crypto currencies
Share-based payments reserve
Share capital Share Premium Retained earnings
Total
£'000 £'000 £'000 £'000 £'000 £'000
Unaudited
Six months ended 30 April 2024
At 1 November 2023 1,211 9,817 923 503 (9,523) 2,931
Profit for the period and total comprehensive profit - - - - 2,093 2,093
Shares issued during the period 392 95 - - - 467
1,603 9,982 923 503 (7,430) 5,491
At 30 April 2024
Unaudited
Six months ended 30 April 2023
At 1 November 2022 1,211 9,817 923 239 (2,552) 9,638
Loss for the period and total comprehensive loss - - - - (210) (210)
At 30 April 2023 1,211 9,817 923 239 (2,762) 9,428
Audited
Year ended 31 October 2023
At 1 November 2022 1,211 9,817 923 239 (2,552) 9,638
Loss for the year - - - - (6,971) (6,971)
Other comprehensive income - - - 264 - 264
Total comprehensive loss for the year - - - 264 (6,971) (6,707)
At 31 October 2023 1,211 9,817 923 503 (9,523) 2,931
Statement of Cash
Flows
Audited
Unaudited
Six months ended 30 April Year ended 31 October
2024 2023 2023
£'000 £'000 £'000
Operating activities
Profit/(loss) for the year 2,093 (210) (6,971)
Adjustments:
Fair value loss/(gain) on investments 58 (138) 2,437
(Profit)/loss on disposal of investments (100) - 4,060
Fair value gain on cryptocurrencies (2,224) - -
Finance income - (103) (171)
Foreign exchange 32 - 24
Depreciation - - 1
Working capital adjustments:
Decrease/(increase) in trade and other receivables 40 (608) (33)
(Decrease)/increase in trade and other payables (41) 6 (17)
Net cash used in operating activities (142) (1,053) (718)
Investing activities
Purchase of investments (300) (2,350) (2,350)
Disposal of investments 116 - -
Purchase of intangible assets - cryptocurrencies - - (475)
Finance income - 103 171
Net cash used in investing activities (184) (2,247) (2,654)
Financing activities
Proceeds from issue of shares 467 - -
Net cash from financing activities 467 - -
Net decrease in cash and cash equivalents 141 (3,300) (3,372)
Cash and cash equivalents at start of financial period 68 3,440 3,440
Cash and cash equivalents at end of financial period 209 140 68
Notes to the Interim Financial Statements for the six months ended 30 April
2024
1. Basis of preparation
The interim results of Supernova Digital Assets PLC are prepared in accordance
with the requirements of IAS 34 Interim Financial Reporting and are prepared
in accordance with the accounting policies set out in the last financial
statements for the year ended 31 October 2023. Supernova Digital Assets PLC
expects to apply the same policies in its financial statements for the year
ending 31 October 2024.
The financial information for the six months ended 30 April 2024 and for the
six months ended 30 April 2023 have neither been audited nor reviewed by the
Company's auditors. The comparative financial information for the year ended
31 October 2023 has been derived from the audited financial statements for
that period.
2. Critical accounting estimates and judgements
The preparation of the financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets, liabilities, income
and expense. Actual results may differ from these estimates. Estimates and
underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimates are
revised and in any periods that will materially affect the accuracy of the
financial statements. The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are significant to the
financial statements, have been disclosed in the last financial statements for
the year ended 31 October 2023.
There are no additional judgements, estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year.
3. Profit/(loss) per ordinary share
The calculation of a basic profit/(loss) per share is based on the
profit/(loss) for the period attributable to equity holders of the Company and
on the weighted average number of shares in issue during the period.
Diluted profit/(loss) per share is calculated adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares.
For the six months ended 30 April 2024, there is no difference between the
basic earnings per share and the diluted earnings per share. The exercise
prices of the outstanding share options are above the average market price of
the shares and are therefore not dilutive under IAS 33 Earnings Per Share.
For the year ended 31 October 2023 and six months ended 30 April 2023, there
is no difference between the diluted loss per share and the basic loss per
share presented due to the loss position of the Company.
4. Intangible Assets - cryptocurrencies
Unaudited Audited
Six months ended 30 April Year ended 31 October
2024 2023 2023
£'000 £'000 £'000
At start of the period 937 - -
Additions 73 - 475
Disposals (8) - -
Transfer - - 174
Fair value movements on cryptocurrencies 2,224 - 264
Exchange differences (32) - 24
At end of the period 3,194 - 937
For the six months ended 30 April 2024, gains in the value of crypto
currencies were recognised in the Statement of Profit and Loss. There was no
transfer to the Fair value reserve - Cryptocurrencies.
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