REG - TAO Alpha PLC - Interim results for the three-month period
10/07/2025 16:15
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RNS Number : 6157Q TAO Alpha PLC 10 July 2025
10 July 2025
TAO Alpha PLC
("TAO", "TAO Alpha" or "the Company")
(To be renamed Satsuma Technology PLC)
Unaudited interim results for the three-month period ended 31 May 2025
The Company announces that its unaudited interim results for the three-month
period ended 31 May 2025.
For further information please contact:
TAO Alpha PLC
Matthew Lodge via First Sentinel
Financial Adviser
Brian Stockbridge +44 20 3855 5551
(First Sentinel Corporate Finance Limited)
Corporate Broker
Guy Wheatley Guy Wheatley
(Fortified Securities) guy.wheatley@fortifiedsecurities.com
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 3 MONTH PERIOD ENDING 31 MAY 2025
Unaudited Unaudited Audited
Period ending Period ending Year ending
31 May 2025 31 Aug 2024 28 Feb 2025
Notes £'000 £'000 £'000
Continuing Operations
Revenue 1 - 1
Cost of Sales - - -
Gross Profit - - 1
Administrative expenses (115) (383) (709)
Write down / impairment - - -
Operating loss (115) (383) (708)
Finance Income - - -
Finance Costs - - -
Loss before taxation (115) (383) (708)
Taxation on loss of ordinary activities - -
Loss for the year from continuing operations (115) (383) (708)
Other comprehensive income 6 375 - -
Total comprehensive loss for the year attributable to shareholders from
continuing operations
260 (383) (708)
Basic & dilutive earnings per share - pence 4 (0.00) (0.10) (0.18)
The notes on page 5-11 form an integral part of the condensed interim
financial statements.
CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 31 MAY 2025
Unaudited Unaudited Audited
As At As at As At
31 May 2025 31 Aug 2024 28 Feb 2025
Notes £'000 £'000 £'000
NON-CURRENT ASSETS
Intangible assets 5 2,190 2,157 2,202
Investments 6 625 - 250
TOTAL NON-CURRENT ASSETS 2,815 2,157 2,452
CURRENT ASSETS
Cash and cash equivalents 6 318 31
Trade and other receivables 7 19 32 25
TOTAL CURRENT ASSETS 25 350 56
TOTAL ASSETS 2,840 2,507 2,507
EQUITY
Share capital 8 454 379 454
Share Premium 8 4,904 4,880 4,880
Share Based Payment Reserve 9 743 704 743
Other reserves 33 - 45
Retained Earnings (3,818) (3,753) (4,078)
TOTAL EQUITY (2,316) 2,210 (2,043)
CURRENT LIABILITIES
Trade and other payables 10 524 297 464
TOTAL CURRENT LIABILITIES 524 297 464
TOTAL LIABILITIES 524 297 464
TOTAL EQUITY AND LIABILITIES 2,840 2,507 2,507
The notes on page 5-11 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 10 July 2025 and were signed on its behalf by:
Nicholas Lyth Director
CONDENSED STATEMENT OF CHANGES IN EQUITY
FOR THE 3 MONTH PERIOD ENDING 31 MAY 2025
Share Capital Share Premium Share based payment reserve Other reserves Retained Earnings Total Equity
£'000 £'000 £'000 £'000 £'000 £'000
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 - (3,753) 2,210
Profit (Loss) for period - - - - (325) (325)
Other comprehensive income - - - - - -
Total comprehensive income for year - - - - (325) (325)
Transactions with owners in own capacity:
Ordinary shares issued 75 - - - - 75
Share based payments - - 39 - - 39
Changes in reserves - - - 45 - 45
Total transactions with owners in own capacity 75 - 39 45 - 159
Balance at 28 February 2025 454 4,880 743 45 (4,078) (2,043)
Profit (Loss) for period - - - - 260 260
Other comprehensive income - 24 - - - -
Total comprehensive income for year - 24 - - 260 260
Transactions with owners in own capacity:
Ordinary shares issued - - - - - -
Changes in reserves - - - (12) - (12)
Total transactions with owners in own capacity - - - (12) - (12)
Balance at 31 May 2025 454 4,904 743 33 (3,818) 2,316
CONDENSED STATEMENT OF CASHFLOWS
FOR THE 3 MONTH PERIOD ENDING 31 MAY 2025
Unaudited Unaudited Audited
3 month period ended 6 month period ended 12 month period ended
31 May 2025 31 August 2025 28 Feb 2025
£'000 £'000 £'000
Cash flow from operating activities
Loss for period 260 (383) (707)
Adjustments for:
Write down / Impairment - - 45
Fair value gain on investment (FVTPL) (375) - -
Services settled by issue of warrants - - 39
Changes in working capital:
Decrease / (Increase) in trade and other receivables 6 23 30
Increase / (decrease) in trade and other payables 60 113 279
Net cash used in operating activities (49) (247) (314)
Cash flows from investing activities
Purchase of intangible assets - - (45)
Investments - - (250)
Net cash flow from investing activities - - -
Cash flows from financing activities
Share issue, net of issue costs 25 - 75
Net cash flow from financing activities 25 - -
Net (decrease) in cash and cash equivalents (24) (247) (534)
Cash and cash equivalents at beginning of the period 31 565 565
Foreign exchange impact on cash - - -
Cash and cash equivalents at end of the period 6 318 31
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE 3 MONTH PERIOD ENDING 31 MAY 2025
1 General information
TAO Alpha Plc (formerly known as 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 which utilises TAO Bittensor Subnet technology to maximise
the reach and scope of the developments. It is led by a team experienced in
this sector and in the development of technology businesses. Furthermore, the
recently announced Convertible Loan Facility provides the working capital
required to execute this strategy and, at the same time, allows the company to
implement a Bitcoin Treasury Management strategy. 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.
Regular way purchases and sales of financial assets are accounted for at trade
date.
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
28(th) February 2025.
The interim financial statements are for the three months to 31 May 2025,
being three months from the financial year end for the Company being 28
February 2025. 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 28 February 2025. The Company has disclosed comparative
data for the period from 1(st) March 25 to 31 Aug 2025, 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 March 2025. 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 has signed Convertible Loan Note Financing to enable it to
implement a Bitcoin Treasury Management Strategy. Whilst the Company has
committed to investing 2/3 of this to purchase Bitcoin, the availability of
this finance, being £1.67m ensures that the Company has sufficient resources
to meet its liabilities for a period of at least twelve months from the
reported period of the interim financial statements and the Directors have
therefore determined that these accounts are therefore prepared on a Going
Concern basis.
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 2025. 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.
Intangible Assets
Cryptocurrencies
The Company holds £33k of cryptocurrencies, primarily for investment purposes
and, in some cases, for use as a medium of exchange. The accounting for
cryptocurrencies is an area that involves judgement, as there is currently no
specific IFRS that directly addresses their treatment.
The Group has determined that its cryptocurrency holdings meet the definition
of intangible assets under IAS 38 Intangible Assets, as they are identifiable
non-monetary assets without physical substance and are not financial
instruments. Management has assessed that the cryptocurrencies are not held
for sale in the ordinary course of business and therefore are not classified
as inventory under IAS 2.
The cryptocurrencies are initially recognised at cost and subsequently
measured at cost less any accumulated impairment losses, as there is no
reliably observable active market that would justify the use of a revaluation
model under IAS 38. The determination of whether an active market exists for a
particular cryptocurrency involves judgement, including an assessment of
trading volume, bid/ask spread, and market participant activity.
Impairment testing is performed at each reporting date, and this involves
estimation of the recoverable amount, typically determined with reference to
observable market prices. Impairment losses cannot be reversed under IAS 38,
even if the fair value of the cryptocurrency subsequently recovers.
Management continues to monitor industry guidance and regulatory developments
that may impact the accounting treatment of cryptocurrencies.
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 May 2025 31 August 2025 28 Feb 2025
Loss for the year from continuing operations (£'000) 260 (383) (708)
Weighted average number of ordinary shares in issue 454,210,796 378,732,535 399,075,001
Basic and diluted earnings per share for continuing operations (pence) 0.06 (0.10) (0.18)
The Company had in issue 129,119,998 warrants and options at 31 May 2025
(103,119,998 at 31 August 2024). The profit 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
At 31 May 2025
Intangible asset Type Opening Balance Additions Revaluations Closing balance
£'000 £'000 £'000 £'000
Intellectual Property 2,157 - - 2,157
Cryptocurrencies 45 - (12) 33
At 28 February 2025
Intangible asset Type Opening Balance Additions Revaluations Closing balance
£'000 £'000 £'000 £'000
Intellectual Property 2,157 - - 2,157
Cryptocurrencies - 1 44 45
At 31 August 2024
Intangible asset Type Opening Balance Additions Revaluations Closing balance
£'000 £'000 £'000 £'000
Intellectual Property 2,157* - - 2,157
Cryptocurrencies - - - -
* The Company initially acquired the core intellectual property (IP) from a
third party, Flatiron, for a consideration of £52,000. Subsequent to the
acquisition, the Company undertook significant development and enhancement
activities in relation to the IP. These activities involved the engagement of
external developers and technical consultants, with related costs settled
through a combination of cash payments in GBP and equity-settled share issues.
The IP was commissioned during 2022 and remains in active use. In line with
the Company's accounting policy on internally generated intangible assets, and
in accordance with IAS 38 Intangible Assets, the associated development
expenditure was expensed in the period incurred. This treatment was adopted as
the recognition criteria outlined in IAS 38.57 were not satisfied at the time.
As at the reporting date, the recoverable amount of the IP has been estimated
at £2.157 million, using a cost-based approach reflecting cumulative
development expenditure that would have been capitalised had the recognition
criteria been met. This valuation indicates a potential reversal of previously
recognised impairment losses, subject to the future confirmation of economic
benefits in accordance with the requirements of IAS 36 Impairment of Assets.
6 Investments
Unlisted Investments 31 May 2025 31 August 2024 28 Feb 2025
£'000 £'000 £'000
Roundhouse Digital 625 - 250
625 - 250
During the 3 month period ended 31(st) May 2025, the Company reassessed the
fair value of its investment in Roundhouse Digital, an unlisted entity in
which the Company holds approximate holdings of 17% equity interest. Based on
updated financial information and recent comparable market transactions, the
fair value of the investment increased by £375k. The gain of £375k has been
recognised in the condensed consolidated statement of profit or loss under
'Other Comprehensive Income'.
As a result, the carrying amount of the investment was adjusted from £250 to
£625 as at 31 May 2025.
There have been no disposals or transfers related to this investment during
the period.
The investment is classified as a Level 3 instrument due to the use of
unobservable inputs in the valuation model.
7 Trade and other receivables
Unaudited period Unaudited period Audited period
ended 31 May 2025
ended 31 Aug 2024
ended 28 Feb 2025
£'000 £'000 £'000
Prepayments 7 18 11
VAT 9 14 14
Other receivables 3 - -
Total trade & other receivables 19 32 25
8 Share capital and share premium
Ordinary Share Share
Shares Capital Premium Total
# £'000 £'000 £'000
At 28 February 2025 453,732,535 454 4,880 5,334
Issue of share capital 500,000 - 24 24
At 31 May 2025 454,232,535 454 4,904 5,358
9 Share based payments and other reserves
The following warrants over ordinary shares have been granted by the Company
and are outstanding at 31 May 2025:
Grant date Expiry date Exercise price Outstanding at 31 May 2025 Exercisable at 31 May 2025
18-Oct-21 04 January 2026 £0.01 26,700,000 26,700,000
05-Jan-23 04 January 2026 £0.06 50,000,000 50,000,000
05-Jan-23 04 January 2028 £0.03 6,420,000 6,420,000
26-Jun-23 27 June 2026 £0.025 19,999,998 19,999,998
21-Nov-24 20 November 2027 £0.002 21,000,000 21,000,000
04-Feb-25 03 February 2028 £0.01 5,000,000 5,000,000
129,119,998 129,119,998
As at As at As at
31 May 2025 31 Aug 2024 28 Feb 2025
£'000 £'000 £'000
Share based payments Reserve 743 704 704
Warrants issued in the period - - 39
Warrants cancelled in the period - - -
Total 743 704 743
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 Trade and other payables
Unaudited period Unaudited period ended 31 Aug 2024 Audited period
ended 31 May 2025
ended 28 Feb 2025
£'000 £'000 £'000
Trade creditors 347 206 311
Accruals 177 91 152
Social security and other taxation - - 1
Total trade & other receivables 524 297 464
The directors consider that the carrying value of trade and other payables is approximately equal to their fair value.
11 Financial commitments & contingent liabilities
There were no capital commitments or contingent liabilities pertaining to the
Company at 31 May 2025.
12 Related party transactions
The company made payments or accruals to the following companies in relation
to directors' fees:
Period 1 Mar to Period 1 Mar to Year ended
31 May 2025 31 Aug 2024 28 Feb 2025
£ £ £
Carraway Capital Corp - Mr Mark Rutledge¹ 9,000 18,000 36,000
Dark Peak Services Ltd - Mr Nicholas Lyth² 15,000 30,000 60,000
Marallo Holdings Inc - Mr Michael Edwards³ - 48,000 84,000
Fidelio Holdings Pte Ltd - Mr Matt Lodge 15,000 - 5,000
Darcy Taylor 15,000 - 5,000
Infinity Growth Digital Inc. - Mr D Raphael - 26,000 18,500
54,000 122,000 208,500
¹ At the period end there was an amount of £45,000 owing to Carraway Capital
Corp in relation to fees.
² At the period end there was an amount of £108,000 owing to Dark Peak
Services Ltd in relation to fees.
³ At the period end there was an amount of £108,000 owing to Marallo
Holdings Inc in relation to fees.
At the period end there was an amount of £20,000 owing to Fidelio Holdings
Pte Ltd in relation to fees
At the period end there was an amount of £20,000 owing to Darcy Taylor in
relation to fees
13 Events subsequent to period end
Establishment of Singapore Subsidiary and Treasury Policy Adoption
Subsequent to the balance sheet date, the Board of TAO Alpha PLC established a
wholly owned subsidiary in Singapore, Tao Alpha PTE. LTD, to support treasury
operations in a tax and regulatorily favourable jurisdiction. The Board also
adopted a new treasury policy reflecting the Company's strategic alignment
with the decentralised AI and digital asset sectors.
Convertible Loan Facility
On 13 May 2025, the Company announced that it had secured a £5 million
fixed-price convertible loan facility via Fortified Securities. The facility,
committed and secured by a first-ranking debenture, is non-interest bearing
(save for default interest) and convertible at £0.002 per share upon
shareholder and regulatory approval by 30 August 2025. The maturity date is 30
November 2025 if conversion is not triggered. The investors have the right to
appoint two board members until conversion.
Second convertible loan note
On 27 June 2025 the Company announced that it had launched its Second Secured
Convertible Loan Note Offering in the United States. The Offering will be on a
"best efforts" basis and will be for a minimum of £100,000,000 with a
conversion price of £0.01 (one penny) per share.
Change of Name and TIDM
On 02 July 2025, the Company announced its intention to change its name to
Satsuma Technology PLC (Ticker SATS). The relevant paperwork will be filed
with Companies House shortly, and a further announcement will be made when the
name change is formally effective. The Company's TIDM has changed from "TAO"
to "SATS". The Company's website has being changed to www.satsuma.digital,
effective from the date of this announcement.
Exercise of warrants
On 24 June 2025, the company announced that it had received notices of
exercise of warrants over 6,666,666 ordinary shares of £0.001 each in the
Company ("Ordinary Shares") at an exercise price of 2.5p per Ordinary
Share. As a result, the Company issued 6,666,666 new Ordinary Shares.
On 25 June 2025, the company announced that it had received notices of
exercise of warrants over 9,999,999 ordinary shares of £0.001 each in the
Company ("Ordinary Shares") at an exercise price of 2.5p per Ordinary Share.
As a result, the Company issued 9,999,999 new Ordinary Shares.
Application was made for the 16,666,665 new Ordinary Shares, which ranked
pari passu with the existing Ordinary Shares in issue, to be admitted to
trading on the London Stock Exchange Main Market ("Admission").
Following Admission, the Company's total issued and voting share capital
consists of 470,899,200 Ordinary Shares. The Company does not hold any
ordinary shares in treasury.
Forward-looking statements
Certain statements in this announcement are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''will'' or the negative of
those, variations or comparable expressions, including references to
assumptions. These forward-looking statements are not based on historical
facts but rather on the Directors' current expectations and assumptions
regarding the Company's future growth, results of operations, performance,
future capital and other expenditures (including the amount, nature and
sources of funding thereof), competitive advantages, business prospects and
opportunities. Such forward looking statements reflect the Directors' current
beliefs and assumptions and are based on information currently available to
the Directors. A number of factors could cause actual results to differ
materially from the results discussed in the forward-looking statements
including risks associated with vulnerability to general economic and business
conditions, competition, environmental and other regulatory changes, actions
by governmental authorities, the availability of capital markets, reliance on
key personnel, uninsured and underinsured losses and other factors, many of
which are beyond the control of the Company. Although any forward-looking
statements contained in this announcement are based upon what the Directors
believe to be reasonable assumptions, the Company cannot assure investors that
actual results will be consistent with such forward looking statements.
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