Half-year Report

RNS Number : 9699N

TMT Investments PLC

15 August 2017

 

15 August 2017

TMT INVESTMENTS PLC

("TMT" or the "Company")

Half year report for the six months to 30 June 2017

TMT Investments PLC, the venture capital company investing in high-growth, technology companies across a number of core specialist sectors, is pleased to announce its unaudited interim results for the half-year ended 30 June 2016.

·    Bonus-adjusted NAV per share of US$2.09 (up 10.6% from US$1.89 as of 31 December 2016)

·    3 significant positive revaluations for US$7.43m in total (PandaDoc, Wrike and Taxify)

·    4 small impairments for US$1.08m in total (Adinch, Favim, Ninua and Drippler)

·    Many portfolio companies continue to experience rapid growth

Alexander Selegenev, Executive Director, commented: "We are delighted with our portfolio company performance in the first half of 2017.  In line with expectations announced in our 2016 Annual Report, we have had three sizeable positive revaluations to date in 2017.  These have more than offset the minor write-downs that we have diligently exercised in order to maintain our portfolio valuation updated."

"We continue to see exciting exit opportunities in our chosen sectors as shown by our recent partial exit from project management software company Wrike.  This was achieved at a premium of 114% compared to the value of our stake at the end of December 2016.  We are currently pursuing additional partial exit transactions for a number of our portfolio holdings."

For further information contact:

TMT Investments plc Alexander Selegenev Executive Director www.tmtinvestments.com	[phone] [e-mail]
ZAI Corporate Finance Ltd. NOMAD Dugald J. Carlean/Ray Zimmerman	[phone]
Hybridan LLP Broker Claire Louise Noyce	[phone]
Kinlan Communications David Hothersall	Tel. [phone] [e-mail]

About TMT Investments Plc

TMT Investments PLC invests in high-growth technology companies across a number of core specialist sectors and has a significant number of Silicon Valley investments in its portfolio. Founded in 2010, TMT has net assets of US$58m and has invested in over 40 companies to date. 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

EXECUTIVE DIRECTOR'S STATEMENT

Portfolio Performance

The following developments took place within the Company's portfolio in the first half of 2017 (i.e. between the publication date of our 2016 Annual Report and the publication date of this interim 2017 report):

Cash and partial cash exits, and positive non-cash revaluations:

·     As announced on 25 May 2017, document management platform PandaDoc, Inc. ("PandaDoc") completed a US$15 million Series B equity financing round, led by Rembrandt Venture Partners, with participation from Microsoft Ventures, HubSpot, EBRD (via the EBRD Venture Capital Investment Programme), and Altos Ventures.  The transaction represents a revaluation uplift of US$740,262 (or 150%) in the fair value of TMT's investment in PandaDoc, compared to the previous reported amount as of 31 December 2016.

·     As announced on 27 July 2017, TMT sold part of its equity stake in a portfolio company which is now disclosed as the work management and collaboration platform Wrike, Inc. ("Wrike") for US$400,000.  The transaction represents a revaluation uplift of approximately US$4.89 million (or 114%) in the fair value of TMT's investment in Wrike compared to the latest reported amount as of 31 December 2016.

·     As announced on 1 August 2017, Taxify OÜ ("Taxify") completed a new equity financing round as part of a strategic partnership with Didi Chuxing, the world's leading mobile transportation platform.  The transaction represents a revaluation uplift of approximately US$1.8 million (or 547%) in the fair value of TMT's investment in Taxify, compared to the previous reported amount as of 31 December 2016.

Impairments and write-offs:

·     In the first half of 2017, Favim paid back to TMT US$50,000 of the US$305,050 originally invested by TMT in 2012 and decided to develop a new product.  Despite Favim's existing product being break-even, the Board of TMT considered it prudent to incur an impairment charge equal to US$127,525, or 50% of the fair value of the Company's investment in Favim previously reported as of 31 December 2016 (adjusted for the US$50,000 received).

·     Based on Ninua's performance over the last two years, the Board of TMT decided to incur an impairment charge equal to 50% of the previously reported fair value of the Company's investment, as well as the entire unpaid accumulated interest payable to TMT, of US$349,027 in total.

·     Online advertising platform Adinch (previously impaired in the first half of 2016) continued to struggle.  Accordingly, in the first half of 2017 the Board of TMT considered it prudent to incur an additional impairment charge equal to US$300,000, or 50% of the fair value of the Company's investment in Adinch previously reported as of 31 December 2016.

·     Based on the potential acquisition offers received by Drippler to date, the Board of TMT decided to incur an impairment charge equal to US$302,400, or 100% of the fair value of the Company's investment in Drippler previously reported as of 31 December 2016.

10 largest portfolio holdings:

Portfolio Company Name	Fair value (US$), as of 30 Jun 2017 and currently	as % of total portfolio value
Depositphotos	10,836,105	18.54
Backblaze	9,624,277	16.47
Wrike	9,195,509	15.74
Pipedrive	7,175,590	12.28
Wanelo	5,369,400	9.19
Taxify	2,128,872	3.64
Virool	2,013,851	3.45
Unicell	1,455,088	2.49
PandaDoc	1,233,770	2.11
LeTote	1,068,878	1.83
Total	50,101,340	85.74%

Key developments for the 10 largest portfolio holdings in the first half of 2017 (source: TMT's portfolio companies)

Depositphotos (stock photo marketplace):

·     Continuing double-digit growth in revenue and number of files in the photobank

·     Launched free web-based image editor Crello

Backblaze (online data backup and cloud storage provider):

·     Continuing double-digit growth in revenues

·     On track to 10x YoY revenue growth from new "B2" cloud storage service

·     Launched new Business Backup service

Pipedrive (sales CRM software):

·     Continuing double-digit growth in revenue and number of paid accounts

·     Exceeded 50,000 paying customers

Wanelo (online social shopping platform):

·     Continuing revenue growth

Wrike (work management and collaboration software):

·     Continuing double-digit growth in revenue and number of paid accounts

·     Exceeded 14,000 paying customers and 1m users

Virool (native video advertising platform):

·     Continuing growth in new clients and revenues

·     Launched the Vertical Video Exchange to make it easier for advertisers to buy vertical video ad inventory

Taxify (ride hailing service):

·     Active in more than 25 cities over the world

·     Raised a sizable equity round from the world's leading mobile transportation platform Didi Chuxing

·     Continuing triple-digit growth in revenue and number of users

Unicell (provider of digital marketing solutions and mobile applications and services):

·     Breakeven

·     Traditional business is contracting

·     50%-owned Pango, a parking payment operator in Israel, is fast-growing and cash generative, helping Unicell gradually reduce its debt levels

PandaDoc (document automation software):

·     US$15m new equity raised from Rembrandt Venture Partners and others

·     Significant growth in new clients and revenues

LeTote (Netflix-style fashion rental platform):

·     Continuing growth in revenue and number of customers

New investments

In the first half of 2017, the Company made an additional US$50,000 investment in online marketplace for authentic specialty foods Try The World, Inc. (www.trytheworld.com).

NAV per share

The Company's net asset value ("NAV") per share as of 30 June 2017 increased to US$2.11 (31 December 2016: US$1.89).  Please note that the NAV figure excludes the bonus amount of US$610,107 accrued (but not yet approved) for the second year (period from 01 July 2016 to 30 June 2017) of the Company's Bonus Plan adopted in 2015. The accrued bonus amount is equivalent to approximately 2.2 cents per TMT share, with a pro forma bonus-adjusted NAV per share as of 30 June 2017 of approximately US$2.09.

Operating Expenses

In the first half of 2017, the Company's Administrative Expenses of US$518,093 were above the 2016 levels (US$476,814), primarily due to higher professional fees and the Company's resumption of office rent payments from 1 April 2017.

Financial position

As of 30 June 2017 the Company had no financial debt and US$597,804 in cash reserves.  As of the date of this report, the Company has approximately US$760,000 in cash reserves.

Events after the reporting period

TMT received US$400,000 as per the Wrike transaction announced on 27 July 2017.

Outlook

We are delighted with our portfolio company performance in the first half of 2017.  In line with our expectations announced in our 2016 Annual Report, we have had three sizeable positive revaluations in 2017, which more than offsets the minor write-downs we have diligently exercised in order to maintain our portfolio valuation updated.

We continue to see exciting investment and exit opportunities in our chosen sectors and we look forward to updating our shareholders on the Company's progress in the near future.

Statement of Comprehensive Income

		For the six months ended 30/06/2017		For the six months ended 30/06/2016
	Notes	USD		USD
(Losses) / Gains on investments	3	(958,465)		3,822,536
		(958,465)		3,822,536
Expenses
Bonus scheme payment charge		(610,107)		(837,361)
Administrative expenses	5	(518,093)		(476,814)
Operating (loss) / gain		(2,086,665)		2,508,361
Net finance income	7	1,695		1,914
(Loss) / Gain before taxation		(2,084,970)		2,510,275
Taxation	8	-		-
(Loss) / Gain attributable to equity shareholders		(2,084,970)		2,510,275
Other comprehensive income for the year:
Change in fair value of available-for-sale financial assets	16	7,334,707		(3,275,200)
Total comprehensive income for the year		5,249,737		(764,925)
(Loss) / Gain per share
Basic and diluted (loss) / gain per share (cents per share)	9	(7.51)		9.05

Statement of Financial Position

		At 30 June 2017 USD			At 31 December 2016 USD
	Notes
Non-current assets
Investments in equity shares	10	55,038,058				48,335,876
Convertible loan notes receivable	10	1,998,918				2,250,596
Simple Agreement for Future Equity (SAFE's)	10	1,400,000				1,400,000
Total non-current assets		58,436,976				51,986,472
Current assets
Trade and other receivables	11	154,334				226,917
Cash and cash equivalents	12	597,804				1,057,098
Total current assets		752,138				1,284,015
Total assets		59,189,114				53,270,487
Current liabilities
Trade and other payables	13	257,345				72,211
Total current liabilities		257,345				72,211
Non-current liabilities
Other payables	14	513,504				639,855
Total non-current liabilities		513,504				639,855
Total liabilities		770,849				712,066
Net assets		58,418,265				52,558,421
Equity
Share capital	15	31,453,510				31,453,510
Bonus scheme payment reserve	16	610,107				-
Fair value reserve	16	36,728,481				29,393,774
Retained losses	16	(10,373,833)				(8,288,863)
Total equity		58,418,265				52,558,421

Statement of Cash Flows

		For the six month ended 30/06/2017	For the six month ended 30/06/2016
		USD	USD
	Notes
Operating activities
Operating (loss)/profit		(2,086,665)	2,508,361
Adjustments for non-cash items:
Profit on disposal of available-for-sale assets	3	-	(5,025,303)
Gain on conversion of loan notes to equity		-	-
Impairment of available-for-sale assets and accrued interest	3	981,552	1,223,568
Bonus scheme payment charge		610,107	837,361
Amortized costs of convertible notes receivable	3	1,678	2,708
		(493,328)	(453,305)
Changes in working capital:
Decrease in trade and other receivables	11	(26,443)	(46,857)
Increase in trade and other payables	13	58,782	86,206
Net cash used by operating activities		(460,987)	(413,956)
Investing activities
Interest received	7	1,695	1,914
Purchase of available-for-sale assets	10	(50,000)	(653,000)
Proceeds from sale of available-for-sale assets		50,000	5,829,032
Net cash used by investing activities		1,695	5,177,946
Financing activities
Net cash from financing activities		-	-
(Decrease)/increase in cash and cash equivalents		(459,294)	4,763,990
Cash and cash equivalents at the beginning of the year	12	1,057,098	1,159,789
Cash and cash equivalents at the end of the year	12	597,804	5,923,779

Statement of Changes in Equity

		Share capital	Share-based payment reserve	Bonus payment reserve	Fair value reserve	Retained losses	Total
	Notes	USD	USD	USD	USD	USD	USD
Balance at 31 December 2015		31,453,510	165,454	-	28,614,592	(7,247,998)	52,985,558
Total comprehensive income for the year		-	-	837,361	584,032	925,966	2,347,359
Dividends paid	16	-	-	-	-	(2,774,496)	(2,774,496)
Bonuses paid and transfer to non-current liabilities	16	-	-	(837,361)	-	837,361	-
Lapse of share options	16	-	(165,454)	-	-	165,454	-
Previous year adjustments		-	-	-	195,150	(195,150)	-
Balance at 31 December 2016		31,453,510	-	-	29,393,774	(8,288,863)	52,558,421
Total comprehensive income for the year		-	-	-	7,334,707	(2,084,970)	5,249,737
Bonus scheme payment charge	16	-	-	610,107	-	-	610,107
Balance at 30 June 2017		31,453,510	-	610,107	36,728,481	(10,373,833)	58,418,265

NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2017

1.         Company information

TMT Investments Plc ("TMT" or the "Company") is a company incorporated in Jersey with its registered office at Queensway House, Hilgrove 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 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 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 Investment 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 will seek to make investments in any region of the world.

The financial information relating to the six months ended 30 June 2017 is unaudited and does not constitute statutory accounts. The comparative figures for the financial year ended 31 December 2016 are not the Company's statutory accounts for that financial year. Statutory accounts for the year ended 31 December 2016 were approved by the Board of Directors on 15 March 2017. The report of the auditors on those accounts was unqualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain any qualification.

These unaudited interim financial results were approved by the Board of Directors after market hours on 14 August 2017 and are available on the Company's website http://www.tmtinvestments.com/investor-relations/financial-reports/.

2.         Summary of significant accounting policies

2.1      Basis of presentation

The accounting policies applied by the Company in these unaudited interim results are based on International Financial Reporting Standards as adopted by the European Union, including IAS 34 'Interim Financial Reporting', and in accordance with the accounting policies which are the same as those applied by the Company in its financial statements for the year ended 31 December 2016.

The Company's financial risk management objectives and policies are consistent with that disclosed in the financial statements for the year ended 31 December 2016.

For the purposes of IFRS 8 'Operating Segments' the Company currently has one segment, being 'Investing in the TMT sector'. No further operating segment financial information is therefore disclosed.

2.2      Foreign currency translation

(a) 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.

(b) Transactions and balances

Foreign currency transactions are translated into US$ using the exchange rates prevailing at the dates of the transactions. 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.

Conversation rates, USD
Currency					At 30.06.2016	Average rate, for six months ended 30/06/2016
British pounds, £					1.2288	1.3285
Euro, €					1.1442	1.0808

3          (Loss) / Gain on investments

	For six months ended 30/06/2017		For six months  ended 30/06/2016
	USD		USD
Gross interest income from convertible notes receivable	24,765		23,509
Amortized costs of convertible notes receivable	(1,678)		(2,708)
Net interest income from convertible notes receivable	23,087		20,801
Profit on disposal of equity investments	-		5,025,303
Impairment of available-for-sale assets	(981,552)		(1,223,568)
Total (losses) gain on investments	(958,465)		3,822,536

4          Segmental analysis

Geographic information

The Company has investments in six principal geographical areas - USA, Israel, BVI, Estonia, Cyprus, and Russia.

Non-current financial assets

As at 31/12/2016

	USA	Israel	BVI	Cyprus	Estonia	Russia	Total
	USD	USD	USD	USD	USD	USD	USD
Equity investments	44,481,925	2,644,411	305,050	465,921	379,473	59,096	48,335,876
Convertible notes	3,650,596	-	-	-	-	-	3,650,596
Total	48,132,521	2,644,411	305,050	465,921	379,473	59,096	51,986,472

As at 30/06/2017

	USA	Israel	BVI	Cyprus	Estonia	Russia	Total
	USD	USD	USD	USD	USD	USD	USD
Equity investments	49,864,118	2,342,011	127,525	465,921	2,179,387	59,096	55,038,058
Convertible notes	3,398,918	-	-	-	-	-	3,398,918
Total	53,263,036	2,342,011	127,525	465,921	2,179,387	59,096	58,436,976

5          Administrative expenses

Administrative expenses include the following amounts:

	For six months ended 30/06/2017		For six months ended 30/06/2016
	USD		USD
Staff expenses (note 6)	290,893		292,934
Professional fees	134,933		72,761
Legal fees	2,643		2,409
Bank and LSE charges	7,742		9,218
Audit and accounting fees	12,512		14,046
Rent	23,649		7,000
Other expenses	58,467		60,758
Currency exchange loss/(gain)	(12,746)		17,688
	518,093		476,814

6          Staff expenses

	For six months ended 30/06/2017		For six months ended 30/06/2016
	USD		USD
Directors' fees	92,653		94,694
Wages and salaries	198,240		198,240
	290,893		292,934

Wages and salaries shown above include salaries and bonuses relating to the six months ended 30 June. These costs are included in administrative expenses. There are no employment expenses for share-based payments.

The average number of staff employed (excluding Directors) by the Company during the six months ended 30 June was 5 (for the year ended 31 December 2016: 5).

The Directors' fees for the six months ended 30 June 2017 and 2016 were as follows:

	For six months ended 30/06/2017		For six months ended 30/06/2016
	USD		USD
Alexander Selegenev	50,000		50,475
Yuri Mostovoy	25,000		25,000
James Joseph Mullins	12,663		14,219
Petr Lanin	5,000		5,000
	92,653		94,694

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.

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 and bonuses.

7          Net finance income

	For six months ended 30/06/2017		For six months ended 30/06/2016
	USD		USD
Interest income	1,695		1,914
	1,695		1,914

8          Income tax expense

	For six months ended 30/06/2017		For six months ended 30/06/2016
	USD		USD
Current taxes
Current year	-		-
Deferred taxes
Deferred income taxes	-		-
	-		-

The Company is incorporated in Jersey. No tax reconciliation note has been presented as the income tax rate for Jersey companies is 0%.

9          (Loss) / Profit per share

The calculation of basic profit per share is based upon the net loss for the six months ended 30 June 2017 attributable to the ordinary shareholders of US$2,084,971 (for the six months ended 30 June 2016: net profit of US$2,510,275) and the weighted average number of ordinary shares outstanding calculated as follows:

(Loss) / Profit per share	For the six months ended 30/06/2017		For the six months ended 30/06/2016
Basic (loss)/profit per share (cents per share)	(7.51)		9.05
(Loss)/profit attributable to equity holders of the entity	(2,084,970)		2,510,275

The weighted average number of ordinary shares outstanding before and after adjustment for the effects of all dilutive potential ordinary shares calculated as follows:

(in number of shares weighted during the year outstanding)	For the six months ended 30/06/2017		For the six months ended 30/06/2016
Weighted average number of shares in issue
Ordinary shares	27,744,962		27,744,962
	27,744,962		27,744,962
Effect of dilutive potential ordinary shares
Share options	-		(15,279)
Weighted average of shares for the year (fully diluted)	27,744,962		27,729,683

The diluted (loss) / profit per share for both 2017 and 2016 is kept the same as the basic (loss) / profit per share because the conversion of the share options decreases the basic (loss) / profit per share and is therefore anti-dilutive.

10        Non-current financial assets

	At 30 June 2017		At 31 December 2016
Available-for-sale financial assets, USD:
Investments in equity shares (i)
- unlisted shares	56,038,058		48,335,876
Convertible notes receivable and SAFE's *
- promissory notes (ii)	1,998,918		1,998,918
- SAFE's (iii)	1,400,000		1,400,000
	58,436,976		51,986,472

* Simple Agreement for Future Equity

Reconciliation of fair value measurements of non-current financial assets:

		Available-for-sale				Total
		Unlisted shares		Convertible notes & SAFE's
		USD		USD		USD
Balance as at 1 January 2016		49,483,857		2,202,649		51,686,506
Total gains or losses in 2016:
- in profit or loss - impairment		3,838,207		(219,568)		3,618,639
- in other comprehensive income		584,032		-		584,032
Purchases (including consulting & legal fees)		599,995		1,653,000		2,252,995
Disposal of investment (carrying value)		(6,170,215)		(4,900)		(6,175,115)
Conversion of notes to equity and net gain		-		19,415		19,415
Balance as at 31 December 2016		48,335,876		3,650,596		51,986,472
Total gains or losses in 2017:
- in profit or loss - impairment		(632,525)		(250,000)		(882,525)
- in other comprehensive income		7,334,707		-		7,334,707
Purchases (including consulting & legal fees)		50,000		-		50,000
Disposal of investment (carrying value)		(50,000)		(1,678)		(51,678)
Conversion and other movements		-		-		-
Balance as at 30 June 2017		55,038,058		3,398,918		58,436,976

Available-for-sale investments are carried at fair values. Where financial assets do not have a quoted market price in an active market and their fair values cannot be reliably measured they are measured at cost less any identified impairment losses at the end of reporting period, in accordance with IAS 39 para 46 (c) exemption.

Where there has been a relevant transaction during the year that gives an indication of the fair value of the unlisted shares, the shares are included at that fair value and the increase or decrease in fair value is recognised in the fair value reserve. The "price of recent investment" methodology is used mainly for investments in venture capital companies and includes cost of investment or valuation by reference to a subsequent financing round. Valuation increases above cost are only recognised if that round involved a new external investor and the company is meeting milestones set by investor.

(i)            Equity investments as at 30 June 2017:

Investee company	Date of initial investment	Value at 1 Jan 2017, USD	Additions to equity investments during the period, USD	Capitalized consulting and legal fees, USD	Gain/loss from changes in fair value of equity investments, USD	Other impairments, USD	Disposals, USD	Value at 30 Jun  2017, USD	Equity stake owned
Unicell	15.09.2011	1,455,088	-	-	-	-	-	1,455,088	10.00%
DepositPhotos	26.07.2011	10,836,105	-	-	-	-	-	10,836,105	16.67
RollApp	19.08.2011	600,000	-	-	-	-	-	600,000	10.00%
Wanelo	21.11.2011	5,369,400	-	-	-	-	-	5,369,400	4.73%
ThusFresh	26.03.2012	379,355	-	-	-	-	-	379,355	3.53%
Backblaze	24.07.2012	9,624,277	-	-	-	-	-	9,624,277	14.55%
UM Liquidating Trust	15.07.2014	29,273	-	-	-	-	-	29,273	5.89%
Gentoo LABS	15.05.2014	260,000	-	-	-	-	-	260,000	6.88%
Favim	24.10.2012	305,050	-	-	-	(127,525)	(50,000)	127,525	20.00%
AppsIndep	12.11.2012	465,921	-	-	-	-	-	465,921	19.24%
Virool	29.08.2012	1,813,851	-	-	-	-	-	1,813,851	1.42%
Adinch	19.02.2013	600,000	-	-	-	(300,000)	-	300,000	22.43%
Tracks	24.11.2011	73,115	-	-	-	-	-	73,115	0.00%
Wrike	12.06.2012	4,303,578	-	-	4,891,931	-	-	9,195,509	3.68%
Oriense	27.01.2014	59,096	-	-	-	-	-	59,096	5.45%
E2C	15.02.2014	136,781	-	-	-	-	-	136,781	5.51%
Drippler	01.05.2014	302,400	-	-	(97,400)	(205,000)	-	-	1.45%
Weaved	13.06.2014	255,000	-	-	-	-	-	255,000	2.44%
Le Tote	21.07.2014	1,068,878	-	-	-	-	-	1,068,878	1.35%
Anews	25.08.2014	1,000,000	-	-	-	-	-	1,000,000	9.41%
Twtrland	01.09.2014	155,000	-	-	-	-	-	155,000	3.27%
Drupe	02.09.2014	595,142	-	-	-	-	-	595,142	7.47%
Taxify	15.09.2014	328,958	-	-	1,799,914	-	-	2,128,872	2.30%
Pipedrive	30.07.2012	7,175,590	-	-	-	-	-	7,175,590	3.89%
PandaDoc	11.07.2014	493,508	-	-	740,262	-	-	1,233,770	1.79%
VitalFields	20.12.2013	50,515	-	-	-	-	-	50,515	0.00%
APPrise	16.08.2016	300,000		-	-	-	-	300,000	4.43%
Try the World	11.10.2016	299,995	50,000	-	-	-	-	349,995	0.97%
Total		48,335,876	50,000	-	7,334,707	(632,525)	(50,000)	55,038,058

(ii)           Convertible loan notes as at 30 June 2017:

Investee company	Date of initial investment	Value at 1 Jan 2017, USD	Additions to convertible note investments during the period, USD	Capitalized consulting and legal fees, USD	Amortized costs, USD	Internal movements, USD	Profit on disposal/ Impairment charge, USD	Disposals, USD	Value at 30 Jun 2017, USD	Term, years	Interest rate, %
Ninua	08.06.2011	500,000	-	-	-	-	(250,000)	-	250,000	1.5	5.00%
Sharethis	26.03.2013	570,526	-	-	(198)	-	-	-	570,328	5.0	1.09%
KitApps	10.07.2013	600,000	-	-	-	-	-	-	600,000	1.0	2.00%
Gentoo LABS	21.05.2014	100,000	-	-	-	-	-	-	100,000	2.0	0.28%
ScentBird	13.04.2015	300,726	-	-	(726)	-	-	-	300,000	2.0	4.00%
Weaved	05.10.2015	27,277	-	-	-	-	-	-	27,277	1.0	7.70%
Send a Job	16.05.2016	152,067	-	-	(754)	-	-	-	151,313	2.0	4.00%
Total		2,250,596	-	-	(1,678)	-	(250,000)	-	1,998,918

(iii)          SAFE's as at 30 June 2017:

Investee company	Date of initial investment	Value at 1 Jan 2017, USD	Additions to convertible note investments during the period, USD	Capitalized consulting and legal fees, USD	Amortized costs, USD	Internal movements, USD	Profit on disposal/ Impairment charge, USD	Disposals, USD	Value at 30 Jun 2017, USD	Term, years	Interest rate, %
ScentBird	14.08.2015	600,000	-	-	-	-	-	-	600,000	-	-
Vinebox	06.05.2016	300,000	-	-	-	-	-	-	300,000	-	-
Sixa	28.07.2016	300,000		-	-	-	-	-	300,000	-	-
Virool	16.08.2016	200,000		-	-	-	-	-	200,000	-	-
Total		1,400,000	-	-	-	-	-	-	1,400,000

11        Trade and other receivables

	At 30 June 2017		At 31 December 2016
	USD		USD
Prepayments	21,074		19,269
Interest receivable on promissory notes	118,085		192,348
Interest receivable on deposits	175		300
Loans to portfolio companies	15,000		15,000
	154,334		226,917

12        Cash and cash equivalents

The cash and cash equivalents as at 30 June 2017 include cash on hand and in banks, deposits, net of outstanding bank overdrafts. The effective interest rate at 30 June 2017 was 0.7%.

Cash and cash equivalents comprise the following:

	At June 2017		At December 2016
	USD		USD
Deposits	300,000		500,000
Bank balances	297,804		557,098
	597,804		1,057,098

The following table represents an analysis of cash and equivalents by rating agency designation based on Fitch rating or their equivalent:

		At 30 June 2017		At 31 December 2016
		USD		USD
Bank balances
BBB+ rating		297,804		557,098
		297,804		557,098
Deposits
BBB rating		300,000		500,000
		300,000		500,000
	597,804			1,057,098

13        Trade and other payables

	At 30 June 2017		At 31 December 2016
	USD		USD
Salaries and directors' fees payable	236,478		33,825
Trade payables	16,163		16,275
Other current liabilities	150		914
Accrued expenses	4,554		21,197
	257,345		72,211

14        Other payables

	At 30 June 2017		At 31 December 2016
	USD		USD
Other non-current liabilities	513,504		639,855
	513,504		639,855

15        Share capital

On 30 June 2017 the Company had an authorised share capital of unlimited shares of no par value and had issued share capital of:

	At 30 June 2017		At 31 December 2016
	USD		USD
Share capital	31,453,510		31,453,510
Issued capital comprises:	Number		Number
Fully paid ordinary shares	27,744,962		27,744,962
	Number of shares		Share capital, USD
Balance at 31 December 2016	27,744,962		31,453,510
Balance at 30 June 2017	27,744,962		31,453,510

16        Reserves

	Share-based payment reserve USD	Bonus scheme payment reserve USD	Fair value reserve USD	Retained losses USD	Total USD
Balance as at 1 January 2016	165,454	-	28,614,592	(7,247,998)	21,532,048
Profit for the year	-	837,361	-	925,966	1,763,327
Gain from changes in fair value	-	-	584,032	-	584,032
Dividends paid	-	-	-	(2,774,496)	(2,774,496)
Bonus payments and transfer to non-current liabilities	-	(837,361)	-	837,361	-
Transfer on lapse of share options	(165,454)	-	-	165,454	-
Previous year adjustments	-	-	195,150	(195,150)	-
Balance as at 31 December 2016	-	-	29,393,774	(8,288,863)	21,104,911
Loss for the year	-	-	-	(2,084,970)	(2,084,970)
Gain from changes in fair value	-	-	7,334,707	-	7,334,707
Bonus scheme payment charge	-	610,107	-	-	610,107
Balance as at 30 June 2017	-	610,107	36,728,481	(10,373,830)	26,964,755

17        Related party transactions

Since May 2012, TMT's Moscow-based staff have been located in an office that belongs to a company ("Orgtekhnika") controlled by Mr. Alexander Morgulchik and Mr. German Kaplun, the Company's senior managers and applicable employees. German Kaplun also owns 19.28% of the issued share capital of TMT. Thus Orgtekhnika is considered a related party. Together with other related expenses (support personnel, company car, security and legal services, etc.), the total office rent costs to TMT from 1 April 2017 were US$7,883 per month.

18        Subsequent events

TMT received US$400,000 as per the Wrike transaction announced on 27 July 2017.

 

END

 

 

IR USONRBNAWAAR