Annual Results

Supernova Digital Assets PLC

25 March 2024

 

25 March 2024

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014, as retained as part of the law of England and Wales. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

Supernova Digital Assets PLC
("Supernova" or the "Company")

Annual Results

Supernova Digital Assets (AQSE: SOL), a company specialising in the Solana ecosystem, announces its audited results for the year ended 31 October 2023.

Chairman's Statement

Supernova Digital Assets PLC (the Company) was originally formed to take advantage of opportunities in the DeFi sector and a number of investments were made in that area. Subsequently, this sector has not experienced the growth that was anticipated and as a result the Company has sought out other opportunities.

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 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. In doing so, the overhead burden of the Company was significantly reduced.

The Company's sole objective is to create value for shareholders and it was the Board of Directors view that to continue to support the non-core businesses would not achieve this. The Board believes there is considerable value accretive opportunities available in the Solana cryptocurrency ecosystem.

The Company had invested significant sums into the businesses that were divested in the expectation that this sector would generate profitable returns for shareholders. This proved not to be the case and cash expenditure exceeded revenues. As a result of divesting a number of businesses the Company had a loss of £ £6,971k in the year ending 31 October 2023.

As a result of the decision to focus on developments in the Solana ecosystem, the Company chose to invest most of its free cash into Solana ("SOL"), a digital currency. This was done at a price of £27.28. As of the date of signature of these results, the price of SOL is £134.40 and thus the Company has an unrealised gain of approximately £2,904k on this position.

In addition, the Company has 30,000,000 shares in Phoenix Digital Assets plc ("PNIX") (previously called NFT Investments plc). The Company is aware of a number of announcements by PNIX in relation to its Net Asset Values and that it intends to conduct a buyback of shares in 2024 at a price equivalent to its Net Asset Value.

Finally, the Company invested £2,290k in the IPO of Streaks AI PLC in December 2022 and £10k for 100% of the share capital of London Carbon Exchange Ltd. The rationale for the investment into the IPO of Streaks AI PLC was that the Company wanted to adopt a position in the burgeoning AI sector, and this was one of the few UK IPOs that would facilitate this.

 

MS Edwards

Executive Chairman

The full Annual Report of the Company is available on the Company's website: https://www.supernovaplc.com/

The directors of Supernova accept responsibility for this announcement.

This announcement may contain "forward-looking" statements and information relating to the Company. These statements are based on the beliefs of Company management, as well as assumptions made by and information currently available to Company management. The Company does not undertake to update forward‐looking statements or forward‐looking information, except as required by law.

For further information please contact:

Supernova Digital Assets
Michael Edwards Executive Chairman	[phone]
First Sentinel
Corporate Adviser Brian Stockbridge	[phone]

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.

Statement of Comprehensive Income

For the year ended 31 October 2023

	Note	2023 £'000	2022 £'000
Revenue		-	-
Fair valuation movements in investments	11	(2,437)	(890)
		(2,437)	(890)
Other operating income	3	128	171
Loss on disposal of investments		(3,799)	-
Administrative expenses	4	(1,034)	(1,310)
Operating Loss		(7,142)	(2,029)
Finance income	5	171	77
Loss before taxation		(6,971)	(1,952)
Taxation	7	-	-
Loss after taxation		(6,971)	(1,952)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Gains on cryptocurrencies held	17	264	208
Total comprehensive loss for the year		(6,707)	(1,744)
Loss per ordinary share:
Basic loss per share on loss for the year	8	(0.58p)	(0.16p)
Diluted loss per share on loss for the year	8	(0.58p)	(0.16p)

Statement of Financial Position
As at 31 October 2023
		2023	2022
	Notes	£'000	£'000
Non-Current Assets
Property, plant and equipment	9	-	1
Intangible assets - cryptocurrencies	10	937	-
Investments	11	1,953	2,410
Total non-current assets		2,890	2,411
Current Assets
Trade and other receivables	12	47	3,878
Cash and cash equivalents	13	68	3,440
Total current assets		115	7,318
Total assets		3,005	9,729
Shareholders' equity
Share capital	15	1,211	1,211
Share premium		9,817	9,817
Share based payments reserve		923	923
Fair value reserve- Cryptocurrencies	17	503	239
Retained earnings		(9,523)	(2,552)
Total shareholders' equity		2,931	9,638
Current Liabilities
Trade and other payables	14	74	91
Total current liabilities		74	91
Total liabilities		74	91
Total equity and liabilities		3,005	9,729

The financial statements were approved by the Board of Directors and authorised for issue on 22 March 2024 and were signed on its behalf by:

 

Nicholas Lyth - Director

Statement of Changes in Equity

As at 31 October 2023

Share-based Share Share payments Fair value Retained capital Premium reserve reserve- earnings Total Crypto currencies £'000 £'000 £'000 £'000 £'000 £'000 Year ended 31 October 2022 At 1 November 2021 1,211 9,817 854 31 (600) 11,313 Loss for the year - - - - (1,952) (1,952) Other comprehensive income - - - 208 - 208 Total comprehensive loss for the                            - - - 208 (1,952) (1,744) Warrants issued in the year                                      - - 69 - - 69 At 31 October 2022                                            1,211 9,817 923 239 (2,552) 9,638 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 For the year ended 31 October 2023
	Note	2023 £'000	2022 £'000
Operating activities
Loss for the year		(6,971)	(1,952)
Adjustments:
Other Income		-	(171)
Depreciation		1	-
Finance Income		(171)	(78)
Fair value loss on investments		2,437	890
Loss on disposal of investments		4,060	-
Share based payments		-	69
Foreign exchange		24	-
Working capital adjustments:
Decrease in trade and other receivables		(33)	(3,361)
Decrease in trade and other payables		(17)	(87)
Net cash used in operating activities		(718)	(4,690)
Investing activities
Purchase of investments		(2,350)	-
(Purchase)/disposal of intangible assets - cryptocurrencies		(475)	5,444
Finance income		171	-
Fair value gains on cryptocurrencies		-	208
Net cash used in investing activities		(2,654)	5,652
Net cash from financing activities		-	-
Net (decrease)/ increase in cash and cash equivalents		(3,372)	962
Cash and cash equivalents at start of year		3,440	2,478
Cash and cash equivalents at end of year	13	68	3,440
The notes on pages 18 to 35 form part of these financial statements

The notes contained in the Company's Annual Report form part of these financial statements.

The financial statements were approved by the Board of Directors and authorised for issue on 22 March 2024 and were signed on its behalf by:

 

...............................................................................

Nicholas Lyth - Director

The financial information set out in this announcement does not constitute statutory accounts. This financial information has been extracted from the audited full accounts of the Company for the year ended 31 October 2023. The Company does not declare a dividend for the period.

 

END