REG - TMT Investments - Half-year Report
15/08/2024 07:00
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RNS Number : 5123A TMT Investments PLC 15 August 2024
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.
15 August 2024
TMT INVESTMENTS PLC
("TMT" or the "Company")
Half-year report for the six months to 30 June 2024
TMT Investments Plc (AIM: TMT), the venture capital company investing in
high-growth technology companies, is pleased to announce its unaudited interim
results for the half-year ended 30 June 2024.
Highlights:
· NAV per share of US$6.62 (unchanged from US$6.62 as of 31 December
2023)
· Total NAV of US$208.1 million (US$208.1 million as of 31 December
2023)
· IRR from inception to 30 June 2024 of 15.3% per annum (16.0% to 31
December 2023)
· TMT's 100(th) investee company, Praktika.AI, became the fastest
significant positive revaluation in TMT's history, generating a 12.4 times
paper return in just 5 months
· US$1.9 million of investments in the first half of 2024
· US$5.8 million of disposals for cash during the period
· US$9.8 million in cash and cash equivalent reserves as of 14 August
2024
Alexander Selegenev, Executive Director of TMT, commented:
"In the first half of 2024, TMT's net asset value remained unchanged, albeit
reflecting the continuing divergence between good and poor performers within
the Company's portfolio.
TMT's portfolio benefited from positive revaluations of seven of its investee
companies (Praktika.AI, Phoenix, OneNotary, MedVidi, Affise, Educate Online,
and Mainframe).
At the same time, these positive revaluations have been counterbalanced by
full and partial write-downs in the value of ten of the Company's investments
(Backblaze, ShareThis, Adwisely, Hinterview, Femtech, Aurabeat, Estateguru,
eAgronom, Bairro, and GameOn), in line with TMT's highly prudent approach.
The largest write-down related to NASDAQ-traded Backblaze Inc., whose share
price was highly volatile in the first half of 2024. Nevertheless, TMT
successfully capitalised on the periods of strength in Backblaze's share price
by disposing of Backblaze shares for a total of US$3.8 million net during the
period.
The majority of TMT's portfolio companies, including its largest holdings,
continue to demonstrate good business progress and are adapting well to the
challenges of the current environment. Some of the portfolio companies are
currently fundraising, and TMT expects further positive revaluations by the
time of the publication of its 2024 annual results. Notwithstanding these
positive expectations, we highlight that the well demonstrated divergence
between good and less fortunate performers will continue.
We continue to see a number of outstanding companies that are thriving in the
current market environment and are attracting large levels of funding thanks
to their strong business models and execution. We have therefore continued
to make investments selectively in such companies.
With cash and cash equivalent reserves of US$9.8 million as of 14 August 2024,
TMT is well positioned to ride out the current market volatility and to
continue investing in companies that meet our investment criteria, while
disposing of investments, in whole or in part, where there is an opportunity
to maximise shareholder value.
We look forward to keeping shareholders updated on relevant developments in
due course."
For further information contact:
TMT Investments Plc +44 370 707 4040
Alexander Selegenev (Computershare - Company Secretary)
Executive Director alexander.selegenev@tmtinvestments.com
(mailto:alexander.selegenev@tmtinvestments.com)
www.tmtinvestments.com (http://www.tmtinvestments.com)
Strand Hanson Limited +44 (0)20 7409 3494
(Nominated Adviser)
James Bellman / James Dance
Cavendish Capital Markets Limited +44 (0)20 7220 0500
(Joint Broker)
Ben Jeynes / George Lawson / Charlie Combe
Hybridan LLP +44 (0)20 3764 2341
(Joint Broker)
Claire Louise Noyce
Kinlan Communications +44 (0)20 7638 3435
David Hothersall davidh@kinlan.net (mailto:davidh@kinlan.net)
About TMT Investments Plc
TMT Investments Plc invests in high-growth technology companies globally
across a number of core specialist sectors. Founded in 2010, TMT has a
current investment portfolio of over 50 companies and net assets of US$208
million as of 30 June 2024. The Company's objective is to generate an
attractive rate of return for shareholders, predominantly through capital
appreciation. The Company is traded on the AIM market of the London Stock
Exchange. www.tmtinvestments.com (http://www.tmtinvestments.com) .
Twitter (https://twitter.com/TMT_PLC)
LinkedIn (http://www.linkedin.com/company/tmt-investments-plc)
Facebook (https://www.facebook.com/TmtInvestmentsPlc/)
EXECUTIVE DIRECTOR'S STATEMENT
In the first half of 2024, the venture capital segment, along with the broader
markets, continued to experience a higher degree of volatility.
In line with the market, TMT's portfolio has continued to see an increased
divergence between its stronger and weaker performers. Despite the ongoing
challenges in the macroeconomic and political environment, investors in the
first half of 2024 continued to back fast-growing, high-quality digital
technology companies. As a result, we were pleased to see OneNotary,
Praktika.AI, Phoenix, Educate Online, MedVidi, and Affise receive further
validation of their progress by raising fresh capital at valuation levels that
have resulted in positive revaluations for TMT in the period to 30 June 2024.
In particular, TMT's investment in Praktika.AI, made in December 2023, has
delivered the Company's fastest significant revaluation of a portfolio company
in TMT's history, generating a 12.4-times return in only five months. This
revaluation delivers a perfect example of the exceptional venture capital
opportunity presented by those start-ups whose business models and products
are based on genuine technologies and applications.
In parallel, TMT continues to apply a highly prudent approach to valuing its
portfolio investments and therefore regularly reviews and writes down
investments that are not showing the progress TMT believes is required to
justify the previously reported valuation level. As a result, during the
period, TMT partially or fully wrote down the value of ten of its
investments. This resulted in US$8.0 million of partial and full write-downs
(excluding write-downs related purely to exchange rate fluctuations).
In particular, the value of TMT's equity stake in NASDAQ-traded cloud storage
company Backblaze (www.backblaze.com (http://www.backblaze.com) ), varied
significantly during the period, partly driven by the volatility in the share
prices of many US listed publicly traded technology companies. Based on
Backblaze's closing mid-market price of US$6.16 per share as of 28 June 2024,
TMT's stake in Backblaze recorded a US$3.2 million decrease in value compared
to 29 December 2023. Backblaze's business has been developing well,
recording $31.3m in revenue in Q2 2024, an increase of 27.2% compared to the
same period in 2023. Backblaze remains adjusted-EBITDA-positive and
sufficiently capitalised, with a Company estimated net debt position of
approximately US$4.7 million as of 30 June 2024. TMT availed itself of the
opportunity provided by Backblaze's improved share price in early 2024 to
dispose of Backblaze shares for a total net consideration of US$3.8 million.
Backblaze's closing mid-market price on 14 August 2024 was US$6.31 per share.
NAV per share
The Company's NAV per share of US$6.62 as of 30 June 2024, was unchanged from
31 December 2023.
Operating expenses
In the first half of 2024, the Company's administrative expenses of US$0.66
million were broadly in line with the corresponding 2023 levels (first half of
2023: US$0.64 million), reflecting the Company's subdued level of investment
and business development activities during the period.
Financial position
As of 30 June 2024, the Company had no financial debt and cash and cash
equivalent reserves of US$9.9 million (31 December 2023: US$6.6 million). As
of 14 August 2024, the Company had cash and cash equivalent reserves of US$9.8
million.
Outlook
TMT has a globally diversified investment portfolio of over 50 companies,
focused primarily on Big Data/Cloud, SaaS (software-as-a-service), Mobility,
and FinTech.
Despite the ongoing market and political volatility, investors continue to
invest in high-quality technology businesses at the appropriate valuation
levels. TMT is continuing to identify such opportunities very selectively,
whilst employing a generally cautious investment approach. With no financial
debt and cash and cash equivalent reserves of US$9.8 million as of 14 August
2024, TMT is well positioned to ride out the current market volatility and to
continue making investments and realising full and partial disposals when the
right opportunities present themselves.
Alexander Selegenev
Executive Director
14 August 2024
PORTFOLIO DEVELOPMENTS
The following developments have had an impact on, and are reflected in, the
Company's NAV and/or unaudited financial statements as of 30 June 2024 in
accordance with applicable accounting standards.
Profitable full and partial cash exits, and positive revaluations:
· TMT received an additional US$1.7 million in dividends from Hugo, as
part of the consideration for Hugo's disposal of its food delivery and quick
commerce business in Central America to Delivery Hero completed in 2022.
· TMT disposed of a part of its shares in NASDAQ-traded Backblaze for a
total net consideration of US$3.8 million.
The following of the Company's portfolio investments were positively revalued
as of 30 June 2024:
Portfolio company Portfolio company description Positive revaluation amount (US$) As % of fair value reported as of 31 Dec 2023 Basis for revaluation
Praktika.AI A language learning app, with personalised AI-powered avatar tutors 4,577,073 1,144% New funding round (equity)
(www.praktika.ai (http://www.praktika.ai) )
Educate Online Inc. Distance education platform for children and young adults aged 4-19 2,847,457 100% New funding round (simple agreement for future equity ("SAFE"))
(www.educate-online.io (http://www.educate-online.io) )
MedVidi, Inc. Online provider of medication management and mental care services 1,530,000 149% New funding round (SAFE)
(www.medvidi.com (http://www.medvidi.com) )
Affise Performance marketing and affiliate management solution (www.affise.com 815,637 45% New funding round (SAFE)
(http://www.affise.com) )
Phoenix Digital Health, Inc. Digital health clinic for men (www.phoenix.ca (http://www.phoenix.ca) ) 785,020 152% New funding round (equity)
OneNotary Online notary service (https://onenotary.us (https://onenotary.us/) ) 424,377 85% New funding round (equity)
Mainframe Group, Inc. Software development and marketing services company building products for the 30,407 N/A Cash exit transaction completed in July 2024
decentralised finance ecosystem (www.mainframe.co (http://www.mainframe.co) )
(position was previously fully written off)
Total 11,009,971
Negative revaluations:
The following of the Company's portfolio investments were negatively revalued
as of 30 June 2024:
Portfolio Company Write-down amount (US$) Reduction as % of fair value reported as of 31 Dec 2023 Reasons for write-down
Backblaze 3,184,974 12% Based on the closing mid-market price of US$6.16 per share on 28 June 2024
(incl. US$3.8 million net partial disposal proceeds received in the first half
of 2024)
GameOn 1,030,000 100% Under review
Sharethis 570,030 100% Doubts over likelihood of exiting this legacy inherited investment
Adwisely 800,000 50% Business negatively affected by the challenging market conditions
Aurabeat 515,000 50% Demand for the flagship COVID-related products declined; new products need
time to be rolled out
Estateguru 426,750* 52% Business negatively affected by the challenging market conditions
Bairro 554,775* 52% Business negatively affected by the challenging market conditions
Hinterview 433,504* 50% Business negatively affected by the current economic environment
Femtech 461,805* 50% Business negatively affected by the challenging market conditions; exit
prospects unclear
eAgronom 31,372* 8% New equity capital raise
Total 8,008,210
* - incl. foreign exchange effect
In addition, the following of TMT's non-USD denominated investments decreased
in value purely due to exchange rate fluctuations as of 30 June 2024: Bolt,
Timbeter, 3S Money, Feel, MTL Financial (Outfund), Outvio, Sonic Jobs, and
Laundryheap. Also, additional costs of US$69,828 were incurred and written
off in relation to the previously written-off investment in Legionfarm.
Key developments for the five largest portfolio holdings in the first half of
2024 (source: TMT's portfolio companies):
Bolt (ride-hailing and food delivery service):
· Double-digit annualised revenue growth
· Active in over 600 cities globally (up from over 550 cities as of 31
December 2023)
· On track with previously announced plans to achieve operating
profitability in 2024 and potentially float in 2025
Backblaze (cloud storage provider):
· Double-digit annualised revenue growth
· Multiple new integrations and partnerships building basis for future
growth
· Adjusted EBITDA positive
3S Money (provider of global business accounts and payment solutions):
· Double-digit annualised revenue growth
· EBITDA negative
PandaDoc (proposal automation and contract management software):
· Double-digit annualised revenue growth
· Over 55,000 customers (from over 50,000 as of 31 December 2023)
Scentbird (Perfume, wellness and beauty product subscription service):
· Double-digit annualised revenue growth
· Profitable
Further investments:
Given the persistently high level of market uncertainty and volatility, TMT
continued to be more selective and made the following investments in the first
half of 2024:
New investments during the reporting period:
· US$1,000,000 in Propertymate Inc., trading as NewHomesMate, a
marketplace for newly built homes in the USA (www.newhomesmate.com
(http://www.newhomesmate.com) ); and
· €400,000 in Entytech OÜ, an all-in-one tool for managing back
office tasks and B2B payments for European SMEs (www.enty.io
(http://www.enty.io) ).
Post Period Events
· US$30,407 received by the Company for the disposal of its shares in
previously written-off Mainframe Group, Inc.
FINANCIAL STATEMENTS
Statement of Comprehensive Income
For the six months ended 30/06/2024 For the six months ended 30/06/2023
USD USD
Notes Unaudited Unaudited
Gains/(Losses) on investments 3 467,250 (2,577,516)
Dividend income -
Total investment gain/(loss) 467,250 (2,577,516)
Expenses
Administrative expenses 5 (661,876) (641,077)
Operating loss (194,626) (3,218,593)
Finance income, net 184,770 114,214
Currency exchange (loss)/gain (17,756) 40,206
Loss before taxation (27,612) (3,064,173)
Taxation 7 - -
Loss attributable to equity shareholders (27,612) (3,064,173)
Total comprehensive loss for the year (27,612) (3,064,173)
Loss per share
Basic and diluted loss per share (cents per share) 8 (0.09) (9.74)
Statement of Financial Position
At 30 June At 31 December
2024 2023
USD USD
Unaudited Audited
Notes
Non-current assets
Financial assets at FVPL 9 199,651,762 203,086,676
Total non-current assets 199,651,762 203,086,676
Current assets
Trade and other receivables 10 92,089 151,908
Cash and cash equivalents 11 9,875,608 6,590,935
Total current assets 9,967,697 6,742,843
Total assets 209,619,459 209,829,519
Current liabilities
Trade and other payables 12 1,535,368 1,717,816
Total current liabilities 1,535,368 1,717,816
Total liabilities 1,535,368 1,717,816
Net assets 208,084,091 208,111,703
Equity
Share capital 13 53,283,415 53,283,415
Retained earnings 154,800,676 154,828,288
Total equity 208,084,091 208,111,703
Statement of Cash Flows
For the six months ended 30/06/2024 For the six months ended 30/06/2023
Notes USD USD
Unaudited Unaudited
Operating activities
Loss attributable to equity shareholders (194,626) (3,218,593)
Adjustments for non-cash items:
Changes in fair value of financial assets at FVPL 3 (526,105) 2,673,620
Currency exchange (loss)/gain (17,756) 40,206
Loss/ (gain) on receivables 53,891 (96,104)
(684,596) (600,871)
Changes in working capital:
Decrease in trade and other receivables 10 18,067 1,057,440
Decrease in trade and other payables 12 (182,448) (1,276,644)
Net cash used in operating activities (848,977) (820,075)
Investing activities
Interest received on treasury bills and deposits 184,770 114,214
Purchase of financial assets at FVPL 9 (1,900,336) (2,365,489)
Proceeds from sale of financial assets at FVPL 9 5,849,216 1,834,614
Net cash received from/(used in) investing activities 4,133,650 (416,661)
Increase/(Decrease) in cash and cash equivalents 3,284,673 (1,236,736)
Cash and cash equivalents at the beginning of the period 11 6,590,935 10,102,683
Cash and cash equivalents at the end of the period 11 9,875,608 8,865,947
Statement of Changes in Equity
Share capital Retained earnings Total
USD USD USD
Balance at 1 January 2023 53,283,415 148,450,515 201,733,930
Gain for the year - 6,377,773 6,377,773
Total comprehensive income for the year - 6,377,773 6,377,773
Balance at 31 December 2023 53,283,415 154,828,288 208,111,703
Loss for the period - (27,612) (27,612)
Total comprehensive loss for the period - (27,612) (27,612)
Balance at 30 June 2024 53,283,415 154,800,676 208,084,091
NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2024
1. Company information
TMT Investments Plc ("TMT" or the "Company") is a company incorporated in
Jersey with its registered office at 13 Castle Street, St Helier, JE1 1ES,
Channel Islands.
The Company was incorporated and registered on 30 September 2010 in Jersey
under the Companies (Jersey) Law 1991 (as amended) with registration number
106628 under the name TMT Investments Limited. The Company obtained consent
from the Jersey Financial Services Commission pursuant to the Control of
Borrowing (Jersey) Order 1985 on 30 September 2010. On 1 December 2010, the
Company re-registered as a public company and changed its name to TMT
Investments Plc. The Company's ordinary shares were admitted to trading on
the AIM market of the London Stock Exchange on 10 December 2010.
The memorandum and articles of association of the Company do not restrict its
activities and therefore it has unlimited legal capacity. The Company's
ability to implement its Investing Policy and achieve its desired returns will
be limited by its ability to identify and acquire suitable investments.
Suitable investment opportunities may not always be readily available.
The Company seeks to make investments in any region of the world. The Company
invests in high‑growth technology companies globally across a number of core
specialist sectors. The Company's objective is to generate an attractive
rate of return for shareholders, predominantly through capital appreciation.
Financial statements of the Company are prepared by and approved by the
Directors in accordance with International Financial Reporting Standards, UK
adopted International Accounting Standards and their interpretations issued or
adopted by the International Accounting Standards Board ("IFRSs"). The
Company's accounting reference date is 31 December.
2. Summary of significant accounting policies
2.1. Basis of presentation
Interim financial statements for the six months ended 30 June 2024 and 2023
are unaudited and were approved by the Directors on 14 August 2024. They do
not constitute statutory accounts as defined in section 434 of the Companies
Act 2006. The financial statements for the year ended 31 December 2023 were
prepared in accordance with International Financial Reporting Standards as
adopted by the United Kingdom. The report of the auditor on those financial
statements was unqualified and did not draw attention to any matters by way of
emphasis of matter.
The principal accounting policies applied by the Company in the preparation of
these unaudited financial statements are set out below and have been applied
consistently.
The financial statements have been prepared on a going concern basis, under
the historical cost basis as modified by the fair value of financial assets at
("FVTPL"), as explained in the accounting policies below, and in accordance
with IFRS. Historical cost is generally based on the fair value of the
consideration given in exchange for assets.
2.2. Foreign currency translation
Functional and presentation currency
Items included in the financial statements of the Company are measured in
United States Dollars ('US dollars', 'USD' or 'US$'), which is the Company's
functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into US$ using the exchange rates
prevailing at the dates of the transactions. Foreign currency monetary items
are translated using the closing rate (i.e. mid‑market price investments).
Non-monetary items that are measured at fair value in a foreign currency are
translated using the exchange rates at the date when the fair value was
measured. (i.e. comparable company analysis and cost-based investments as
these are effectively re-fair valued at each year-end).
Exchange differences arising from the translation at the year-end exchange
rates of monetary assets and liabilities denominated in foreign currencies are
recognised in the statement of comprehensive income.
Currency At 30/06/2024 Average rate, for six months ended 30/06/2024
British pounds, £ 1.2642 1.2695
Euro, € 1.0718 1.0883
2.3. New IFRSs and interpretations
The following standards and amendments became effective from 1 January 2024,
but did not have any material impact on the Company:
· amendment to IFRS 16 - Leases on sale and leaseback
· amendment to IAS 1 - Non-current liabilities with covenants
· Amendment to IAS 7 and IFRS 7 - Supplier finance
3. Gains/(Losses) on investments
For six months ended 30/06/2024 For six months
ended 30/06/2023
USD USD
Gross interest income from convertible notes receivable 3,098 -
Net interest income from convertible notes receivable 3,098 -
Gains/(losses) on changes in fair value of financial assets at FVPL 526,105 (2,673,620)
Other (losses)/gains on investment (61,953) 96,104
Total net gains/(losses) on investments 467,250 (2,577,516)
4. Segmental analysis
Geographic information
The Company has investments in the following five geographical areas - USA,
Estonia, the United Kingdom, Portugal and the Cayman Islands.
Non-current financial assets
USA Cayman Islands Estonia United Kingdom Portugal Total
As at 30/06/2024 USD USD USD USD USD USD
Equity investments 68,445,469 - 71,542,872 33,916,597 - 173,904,938
Convertible notes & SAFEs 24,280,956 515,000 428,560 - 522,308 25,746,824
Total 92,726,425 515,000 71,971,432 33,916,597 522,308 199,651,762
USA Cayman Islands BVI Estonia United Kingdom Portugal Total
As at 31/12/ 2023 USD USD USD USD USD USD USD
Equity investments 73,579,189 - 1,695,398 74,200,126 34,987,820 - 184,462,533
Convertible notes & SAFEs 16,517,060 1,030,000 - - - 1,077,083 18,624,143
Total 90,096,249 1,030,000 1,695,398 74,200,126 34,987,820 1,077,083 203,086,676
5. Administrative expenses
Administrative expenses include the following amounts:
For six months ended 30/06/2024 For six months ended 30/06/2023
USD USD
Staff expenses (note 6) 454,170 412,081
Professional fees 136,935 147,671
Legal fees 17,088 13,576
Bank and LSE charges 12,170 6,502
Audit and accounting fees 8,215 13,459
Other expenses 33,298 47,788
661,876 641,077
6. Staff expenses
For six months ended 30/06/2024 For six months ended 30/06/2023
USD USD
Directors' fees 117,170 105,481
Wages and salaries 337,000 306,600
454,170 412,081
Wages and salaries shown above include fees and salaries relating to the six
months ended 30 June.
The Directors' fees for the six months ended 30 June 2024 and 2023 were as
follows:
For six months ended 30/06/2024 For six months ended 30/06/2023
USD USD
Alexander Selegenev 62,500 55,000
Yuri Mostovoy 30,000 27,500
James Joseph Mullins 15,182 13,650
Andrea Nastaj 9,488 9,331
117,170 105,481
The Directors' fees shown above are all classified as 'short term employment
benefits' under International Accounting Standard 24. The Directors do not
receive any pension contributions or other benefits. The average number of
staff employed (excluding Directors) by the Company during the six months
ended 30 June 2024 was 7 (six months ended 30 June 2023: 7).
Key management personnel of the Company are defined as those persons having
authority and responsibility for the planning, directing and controlling the
activities of the Company, directly or indirectly. Key management of the
Company are therefore considered to be the Directors of the Company. There
were no transactions with the key management, other than their Directors fees,
bonuses and reimbursement of business expenses.
7. Income tax expense
The Company is incorporated in Jersey. No tax reconciliation note has been
presented as the Company's current income tax rate in Jersey is 0%.
8. Loss per share
The calculation of basic loss per share is based upon the net losses for the
six months ended 30 June 2024 attributable to the ordinary shareholders of
US$27,612 (for the six months ended 30 June 2023: US$3,064,173) and the
weighted average number of ordinary shares outstanding calculated as follows:
Loss per share For the six months ended 30/06/2024 For six months ended 30/06/2023
Basic loss per share (cents per share) (0.09) (9.74)
Loss attributable to equity holders of the entity (27,612) (3,064,173)
The weighted average number of ordinary shares outstanding was calculated as
follows:
For the six months ended 30/06/2024 For the six months ended 30/06/2023
Weighted average number of shares in issue
Ordinary shares 31,451,538 31,451,538
31,451,538 31,451,538
9. Non-current financial assets
Reconciliation of fair value measurements of non-current financial assets:
At 30 June At 31 December 2023
2024
USD
USD
Investments held at fair value through profit and loss, USD:
- listed and unlisted shares (i) 173,904,938 184,462,533
- promissory notes (ii) 2,560,000 1,600,030
- SAFEs (iii) 23,186,824 17,024,113
199,651,762 203,086,676
At 30 June At 31 December 2023
2024
USD
USD
Opening valuation 203,086,676 195,260,535
Purchased (including consulting fees) 1,900,336 4,686,489
Disposal proceeds (5,861,355) (4,201,902)
Impairment losses in the period (1,669,858) (10,289,184)
Realised gains 1,132,135 1,098,401
Unrealised gains 1,063,828 16,532,337
Closing valuation 199,651,762 203,086,676
Movement in unrealised gains
Opening accumulated unrealised gains 133,189,507 118,262,354
Unrealised gains 1,063,828 16,532,337
Transfer of previously unrealised losses to realised reserve on disposal of (3,509,014)
investments
(1,605,184)
Closing accumulated unrealised gains 130,744,321 133,189,507
Reconciliation of investments, if held under the cost and price of recent
investment model:
Historical cost basis
Opening book cost 69,897,169 76,998,181
Purchases (including consulting fees) 1,900,336 4,686,489
Disposal on sale of investment (1,301,327) (1,498,317)
Impairment losses in the period (1,588,737) (10,289,184)
Closing book cost 68,907,441 69,897,169
Valuation methodology
Level 1 ‑ Mid-market price 19,031,086 26,010,444
Level 2 ‑ Comparable company analysis 94,743,472 96,422,492
Level 3 ‑ Cost or price of recent investment 85,877,204 80,653,740
199,651,762 203,086,676
The estimates significant to the financial statements during the period and at
the period-end is the consideration of the fair value of financial assets at
FVPL as set out in the relevant accounting policies. A number of the financial
assets at FVPL held by the Company are at an early stage of their
development. The Company cannot yet carry out regular reliable fair value
estimates of some of these investments. Future events or transactions
involving the companies invested in may result in more accurate valuations of
their fair values (either upwards or downwards) which may affect the Company's
overall net asset value.
Valuation methodologies can be changed from time to time, the following table
shows the changes made in the first half of 2024 compared to 2023. These
investments were held at cost or price of recent investments and at comparable
company analysis and of the total value of US$7,279,996 as of 31 December
2023:
Company name 2024 2023
Affise Cost and price of recent investment Comparable company analysis
Aurabeat Comparable company analysis Cost and price of recent investment
FemTech Comparable company analysis Cost and price of recent investment
Hinterview Comparable company analysis Cost and price of recent investment
Adwisely (Retarget) Comparable company analysis Cost and price of recent investment
Bairro Comparable company analysis Cost and price of recent investment
The list of fully impaired investments, in which the Company still maintained
ownership as of 30 June 2024, was as follows:
Company name Investment amount (USD) Year of impairment
Rollapp 350,000 2018
UsingMiles/Help WW/Source Inc. 250,000 2018
Favim 300,000 2018
AdInch 1,000,000 2018
E2C 124,731 2020
Drupe 225,000 2019
Virool/Turgo 600,000 2017
Sixa 300,000 2019
Usual Beverage Co. 300,000 2022
StudyFree 1,000,000 2022
Rocket Games (Legionfarm)* 1,719,828 2023
Scalarr 1,999,999 2023
Academy of change 1,000,000 2023
Conte.ai/Postoplan 1,784,185 2023
Metrospeedy 1,000,000 2023
BaFood 2,500,000 2023
Sharethis 488,909 2024
GameOn 1,030,000 2024
Total 15,972,652
* Including additional costs incurred in the period
Financial assets at fair value through profit or loss are measured at fair
value, and changes therein are recognised in profit or loss.
When measuring the fair value of a financial instrument, the Company uses
relevant transactions during the period or shortly after the period end, which
gives an indication of fair value and considers other valuation methods to
provide evidence of value. The "price of recent investment" methodology is
used mainly for venture capital investments, and the fair value is derived by
reference to the most recent financing round or sizeable partial disposal.
Fair value change is only recognised if that round involved a new external
investor. From time to time, the Company may assess the fair value in the
absence of a relevant independent equity transaction by relying on other
market observable data and valuation techniques, such as the analysis of
revenue multiples of comparable companies and/or comparable transactions. The
nature of such valuation techniques is highly judgmental and dependent on the
market sentiment at the time of the analysis.
(i) Equity investments as at 30 June 2024:
Investee company Date of initial investment Value at Additions to equity investments during the period, USD Conversions from loan notes and SAFEs, USD Gain/(loss) from changes in fair value of equity investments, USD Disposals, USD Value at 30 June 2024, USD Fully diluted equity stake owned
1 Jan 2024,
USD
Backblaze 24.07.2012 26,010,443 371,628 - (3,185,028) (4,165,957) 19,031,086 5-10%
Remote.it 13.06.2014 131,200 - - - - 131,200 <5%
Bolt 15.09.2014 72,181,098 - - (2,175,822) - 70,005,276 <5%
PandaDoc 11.07.2014 8,013,824 - - - - 8,013,824 <5%
Full Contact 11.01.2018 244,506 - - - - 244,506 <5%
ScentBird 13.04.2015 7,009,600 - - - - 7,009,600 <5%
Workiz 16.05.2016 3,971,659 - - - - 3,971,659 <5%
Hugo 19.01.2019 1,695,398 - - - (1,695,398) - <5%
MEL Science 25.02.2019 905,656 - - - - 905,656 <5%
Qumata 06.06.2019 909,411 - - - - 909,411 <5%
eAgronom 31.08.2018 417,213 - - (31,372) - 385,841 <5%
Timbeter 05.12.2019 220,940 - - (6,660) - 214,280 <5%
3S Money Club 07.04.2020 17,107,405 - - (128,839) - 16,978,566 10-15%
Hinterview 21.09.2020 860,526 - - (433,504) - 427,022 <5%
Virtual Mentor (Allright) 12.11.2020 772,500 - - - - 772,500 <5%
NovaKid 13.11.2020 2,949,855 - - - - 2,949,855 <5%
MTL Financial (OutFund) 17.11.2020 2,716,817 - - (20,461) - 2,696,356 <5%
Accern 21.08.2019 2,873,884 - - - - 2,873,884 <5%
Feel 13.08.2020 3,868,062 - - (29,131) - 3,838,931 10-15%
Affise 18.09.2019 1,795,680 - - 815,637 - 2,611,317 5-10%
3D Look 03.03.2021 500,000 - - - - 500,000 <5%
FemTech 30.03.2021 916,707 - - (461,805) - 454,902 5-10%
Muncher 23.04.2021 2,853,698 - - - - 2,853,698 5-10%
CyberWrite 20.05.2021 1,075,741 - - - - 1,075,741 <5%
Outvio 22.06.2021 552,350 - - (16,650) - 535,700 <5%
Collectly 13.07.2021 6,449,328 - - - - 6,449,328 <5%
VertoFX 16.07.2021 1,132,999 - - - - 1,132,999 <5%
EstateGuru 06.09.2021 828,525 - - (426,750) - 401,775 <5%
Prodly 09.09.2021 1,800,000 - - - - 1,800,000 <5%
Sonic Jobs 15.09.2021 903,675 - - (6,806) - 896,869 <5%
EdVibe (Study Space, Inc) 02.11.2021 750,000 - - - - 750,000 5-10%
1Fit (Alippe, Inc) 24.12.2021 1,580,320 - - - - 1,580,320 <5%
Agendapro 03.09.2021 910,609 - - - - 910,609 <5%
Laundryheap 28.01.2022 2,799,561 - - (21,084) - 2,778,477 <5%
My Device Inc 30.11.2021 1,789,241 - - - - 1,789,241
SOAX 21.01.2022 4,000,000 - - - - 4,000,000 5-10%
Spin.ai 17.12.2018 964,102 - - - - 964,102 <5%
New Homes Mate 16.02.2024 - 1,030,000 - - - 1,030,000 <5%
ThusFresh/ Mainframe 26.03.2012 - - - 30,407 - 30,407 -
Total 184,462,533 1,401,628 - (6,097,868) (5,861,355) 173,904,938
(ii) Convertible loan notes as at 30 June 2024:
Investee company Date of initial investment Value at 1 Jan 2024, Additions to convertible note investments during the period, USD Conversions from loan notes, USD Gain/(loss) from changes in fair value of convertible notes, USD Write-offs, USD Value at 30 Jun 2024, USD
USD
Sharethis 26.03.2013 570,030 - - - (570,030) -
MedVidi 27.09.2021 1,030,000 - - 1,530,000 - 2,560,000
Total 1,600,030 - - 1,530,000 (570,030) 2,560,000
(iii) SAFEs as at 30 June 2024:
Investee company Date of initial investment Value at 1 Jan 2024, Additions to SAFE investments during the period, USD Conversions to equity, USD Gain/loss from changes in fair value of SAFE investments, USD Write-offs, USD Value at 30 June 2024, USD
USD
Cheetah (Go-X) 29.07.2019 175,000 - - - - 175,000
Adwisely (Retarget) 24.09.2019 1,600,000 - - (800,000) - 800,000
Rocket Games (Legionfarm) 17.09.2019 - 69,828 - (69,828) - -
Moeco 08.07.2020 500,000 - - - - 500,000
Aurabeat 03.05.2021 1,030,000 - - (515,000) - 515,000
Synder (CloudBusiness Inc) 26.05.2021 3,428,571 - - - - 3,428,571
OneNotary (Adorum) 01.10.2021 500,000 - - 424,377 - 924,377
Educate online 16.11.2021 2,847,458 - - 2,847,457 - 5,694,915
Mobilo (Lulu Systems, Inc) 09.12.2021 1,700,000 - - - - 1,700,000
Bairro 12.01.2022 1,077,084 - - (554,776) - 522,308
1Fit (Alippe, Inc) 19.04.2023 500,000 - - - - 500,000
Phoenix 29.05.2023 515,000 - - 785,020 - 1,300,020
GameOn 19.06.2023 1,030,000 - - - (1,030,000) -
Montera 02.08.2023 721,000 - - - - 721,000
Rain Technologies Inc. 17.10.2023 1,000,000 - - - - 1,000,000
Praktika.ai 29.12.2023 400,000 - - 4,577,073 - 4,977,073
Entytech OU 20.06.2024 - 428,880 - (320) - 428,560
Total 17,024,113 498,708 - 6,694,003 (1,030,000) 23,186,824
10. Trade and other receivables
At 30 June At 31 December 2023
2024
USD USD
Prepayments 53,743 60,914
Other receivables 38,346 18,145
Interest receivable on promissory notes - 66,917
Interest receivable on deposit - 5,932
92,089 151,908
The fair values of trade and other receivables approximate to their carrying
amounts as presented above. During the six months ended 30 June 2024 and 2023
no balances were past due or impaired, and no credit losses had been expected.
Other receivables as of 30 June 2024 represented amounts due from the disposed
investment in Classtag and Hugo (as of 31 December 2023 - Classtag).
11. Cash and cash equivalents
The cash and cash equivalents as at 30 June 2024 include cash and cash
equivalents in banks and brokers.
Cash and cash equivalents comprise the following:
At 30 June At 31 December 2023
2024
USD USD
Treasury bills 1,782,628 1,732,693
Deposits - 1,164,380
Bank balances 8,092,980 3,693,862
9,875,608 6,590,935
The following table represents an analysis of cash and equivalents by rating
agency designation based on Moody`s rating or their equivalent:
At 30 June At 31 December 2023
2024
Bank balances USD USD
C rating 204,360 119,041
Caa2 rating 7,230,147 3,566,010
Baa3 rating 1,363 1,736
Not rated 657,110 7,075
8,092,890 3,693,862
At 30 June At 31 December 2023
2024
Deposits USD USD
A1 rating - 1,164,380
- 1,164,380
At 30 June At 31 December 2023
2024
Treasury bills USD USD
AAA rating 1,782,628 1,732,693
1,782,628 1,732,693
12. Trade and other payables
At 30 June At 31 December 2023
2024
USD USD
Salaries payable 84,500 16,000
Directors' fees payable 19,523 12,622
Bonuses payable 1,415,662 1,638,709
Trade payables 12,072 10,156
Other current liabilities 160 162
Accruals 3,451 40,167
1,535,368 1,717,816
The fair value of trade and other payables approximate to their carrying
amounts as presented above.
13. Share capital
On 30 June 2024, the Company had an authorised share capital of unlimited
ordinary shares of no par value and had issued ordinary share capital of:
At 30 June At 31 December 2023
2024
USD USD
Share capital 53,283,415 53,283,415
Issued capital comprises: Number Number
Fully paid ordinary shares 31,451,538 31,451,538
Number of shares Number of shares
Balance at 31 December 2023 31,451,538 31,451,538
Issue of ordinary shares - -
Balance at 30 June 2024 31,451,538 31,451,538
There have been no changes to the Company's ordinary share capital between 30
June 2024 and the date of approval of these financial statements.
14. Related party transactions
The Company's Directors receive fees and bonuses from the Company, details of
which can be found in Note 6.
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