Half-year Report

RNS Number : 9517X

TMT Investments PLC

16 August 2018

 

16 August 2018

TMT INVESTMENTS PLC

("TMT" or the "Company")

Half year report for the six months to 30 June 2018

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 2018.

·    Bonus-adjusted NAV per share of US$2.75 (uplift of 13.2% from US$2.43 as of 31 December 2017)

·    US$2.0 million profitable partial cash exit from Pipedrive

·    US$16.6 million in positive revaluations from Taxify, Pipedrive, Vinebox and Remot3.it

·    US$4.8 million in impairments from Scentbird, Adinch, Ninua, RollApp and TryTheWorld

·    US$3.5 million (before expenses) raised from UK institutional investors

·    Diversified portfolio of over 30 companies focused around big data, e-commerce, and business SaaS (software-as-a-service) tools

·    Many portfolio companies continue to experience rapid growth

Alexander Selegenev, Executive Director of TMT, commented: "We are delighted with our portfolio company performance in the first half of 2018, especially from Taxify, which became the first "unicorn" in our portfolio in May this year when it was valued at $1bn, and for which we previously announced an upward revaluation less than a year ago.  The Company is increasingly recognised as one of very few AIM-quoted vehicles providing UK investors with exposure to earlier stage, primarily US-based, tech companies, and we were pleased to welcome new UK institutional investors to the register in March 2018.  The proceeds of the recent placing are being directed towards investing in additional exciting companies that meet our investment criteria of having outstanding management teams and globally scalable business models.  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."

For further information contact:

TMT Investments PLC Alexander Selegenev Executive Director www.tmtinvestments.com	[phone] [e-mail]
Smith & Williamson Corporate Finance Ltd Nominated Adviser Russell Cook David Jones Ben Jeynes	[phone]
Hybridan LLP Broker Claire Louise Noyce	[phone]
Kinlan Communications David Hothersall	[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 invested in over 40 companies to date and has latest announced net assets of US$82m. 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 between the publication date of our 2017 Annual Report and the publication date of this interim 2018 report:

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

·    As announced on 30 May 2018, Taxify, a leading international ride-hailing company (www.taxify.eu), completed a US$175 million funding round led by global automotive leader Daimler AG.  European venture capital fund Korelya Capital and TransferWise's co-founder Taavet Hinrikus joined Didi Chuxing and a number of Taxify's other existing shareholders in the round that brought Taxify's valuation to US$1 billion.  Daimler also joined Taxify's board.  The transaction represented a revaluation uplift of US$13.30 million (or 350%) in the fair value of TMT's investment in Taxify, compared to the previous reported amount as of 31 December 2017.

·    As announced on 30 May 2018, TMT sold a small holding in Pipedrive, a leading sales CRM (Customer Relationship Management) software provider (www.pipedrive.com), for a total consideration of US$2.0 million.  The transaction represented a revaluation uplift of US$3.14 million (or 34.4%) in the fair value of TMT's investment in Pipedrive, compared to the previous reported amount as of 31 December 2017.

·    In June 2018, wine subscription service Vinebox (www.getvinebox.com) completed a new equity capital round.  The transaction represented a revaluation uplift of US$150,015 (or 50%) in the fair value of TMT's investment in Vinebox, compared to the previous reported amount as of 31 December 2017.

·    In April 2018, IoT solutions provider Remot3.it (www.remot3.it) completed an additional equity capital raise triggering conversion of TMT's convertible note in Remot3.it.  The transaction represented a revaluation uplift of US$41,510 (or 5.5%) in the fair value of TMT's investment in Remot3.it, compared to the previous reported amount as of 31 December 2017.

Impairments and write-offs:

·    As announced on 30 May 2018, Scentbird, a subscription-based service for luxury fragrances and other beauty products (www.scentbitd.com), completed a further funding round to raise US$18.6 million from a group of investors led by Goodwater Capital, the consumer technology investment firm, and joined by Y Combinator, Rainfall Ventures, FundersClub, Soma Capital, Scrum Ventures, ERA, and others. The transaction represented a reduction of US$3.61 million in the fair value of TMT's investment in Scentbird, compared to the previous reported amount as of 31 December 2017.

The following of the Company's portfolio investments were also impaired in the first half of 2018:

Portfolio Company	Impairment amount (US$)	Impairment as % of fair value reported as of 31 Dec 2017	Reasons for impairment
Adinch	300,000	100%	Final write-off of the previously impaired investment; Board's discretion
Ninua	250,000	100%	Final write-off of the previously impaired investment; Board's discretion
RollApp*	627,240	100%	Lack of progress; Board's discretion
Try The World	18,250	100%	Final write-off of the previously impaired investment; company is in liquidation

* - incl. the outstanding loan and accumulated interest payable to TMT

10 largest portfolio holdings:

Portfolio Company Name	Fair value (US$), as of 30 June 2018 and currently	as % of total portfolio value
Taxify	17,094,470	22.31
Depositphotos	10,836,105	14.14
Backblaze	10,533,334	13.75
Pipedrive	10,257,097	13.39
Wrike	8,395,508	10.96
Wanelo	5,369,400	7.01
Scentbird	3,340,404	4.36
LeTote	1,997,073	2.61
Unicell	1,455,088	1.90
PandaDoc	1,233,770	1.61
Total	70,512,249	92.02

Key developments for the 10 largest portfolio holdings in the first half of 2018 (source: TMT's portfolio companies)

Taxify (ride hailing service):

·    Active in 47 cities over the world (from "over 30" cities as of 31 December 2017)

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

·    Raised US$175 million from Daimler AG

Depositphotos (stock photo marketplace):

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

Backblaze (online data backup and cloud storage provider):

·    Continuing double-digit growth in revenues

·    "B2" cloud storage revenue grows at nearly 300% year on year

Pipedrive (sales CRM software):

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

·    Over 75,000 paying customers (from "over 70,000" as of 31 December 2017)

·    Raised US$50 million from Insight Venture Partners and Bessemer Venture Partners

Wrike (work management and collaboration software):

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

·    Over 17,000 paying customers and 1m users (from "over 15,000" as of 31 December 2017)

Wanelo (online social shopping platform):

·    No significant changes

Scentbird (perfume and other beauty product subscription service):

·    Continuing double-digit growth in revenue and number of customers

·    Over 250,000 subscribers (from "over 200,000" as of 31 December 2017)

·    Raised US$18.7 million in a new equity round

LeTote (Netflix-style fashion rental platform):

·    Continuing growth in revenue and number of customers

·    Recent cost restructuring to improve profitability

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

·    Breakeven

·    Traditional business keeps 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):

·    Ongoing growth in new clients and revenues

New investments

On 21 February 2018, the Company announced its first blockchain-related investment through participation in the first phase of the pre-ICO (Initial Coin Offering) conducted by Telegram Group, Inc. ("Telegram") (https://ico-telegram.org/).   TMT pre-paid US$300,000 for Telegram tokens as part of the transaction.

Also in the first half of 2018, the Company invested an additional US$300,000 in cloud-based PC emulator Sixa (www.sixa.io).

NAV per share

The Company's net asset value ("NAV") per share in the first six months of 2018 increased 15.6% to US$2.81 (31 December 2017: US$2.43).  Please note that the NAV figure excludes the bonus amount of US$1,512,251 accrued (but not yet approved) for the third year (period from 01 July 2017 to 30 June 2018) of the Company's bonus plan adopted in 2015 (the "Bonus Plan").  The accrued bonus amount is equivalent to approximately 5.2 cents per TMT share, with a pro forma bonus-adjusted NAV per share as of 30 June 2018 of approximately US$2.75. 

Operating Expenses

In the first half of 2018, the Company's Administrative Expenses of US$606,143 were above the 2017 levels (US$518,093), primarily due to additional fees related to the Company's placing in March 2018, resumption of office rent payments from 1 April 2017, and currency exchange fluctuations.

Financial position

On 29 March 2018, the Company announced that it had raised US$3.5 million (before expenses) by issuing and allotting 1,276,260 new ordinary shares of no par value each in the Company to certain institutional and other investors, and a further 164,609 new ordinary shares of no par value to certain existing shareholders, at a price of US$2.43 per share.

As of 30 June 2018, the Company had no financial debt and US$5,147,665 in cash reserves.  As of the date of this report, the Company has approximately US$4,790,000 in net cash reserves.

Bonus Plan

The Company extended its Bonus Plan for the next three years (until 30 June 2021) on the same terms, with slightly amended initial allocations of the Bonus Pool among the current participants.  Under the Bonus Plan, subject to achieving minimum hurdle rate and high watermark conditions in respect of the Company's NAV, the team receives annual cash bonus equal to 7.5% of the net increases in the Company's NAV, adjusted for any changes in the Company's equity capital resulting from issuance of new shares, dividends, share buy-backs or similar corporate transactions in each relevant year.

Events after the reporting period

In July 2018, the Company invested US$100,000 in natural language search interface for enterprise data FriendlyData (www.friendlydata.io)

Outlook

We are delighted with our portfolio company performance in the first half of 2018, especially from Taxify, which has now become the first "unicorn" in our portfolio, and for which we previously announced an upward revaluation less than a year ago.  The Company is increasingly recognised as one of very few AIM-quoted vehicles providing UK investors with exposure to earlier stage, primarily US-based, tech companies, and we were pleased to welcome new UK institutional investors to the register in March 2018.  The proceeds of the recent placing are being directed towards investing in additional exciting companies that meet our investment criteria of having outstanding management teams and globally scalable business models.  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 (unaudited)

		For the six months ended 30/06/2018		For the six months ended 30/06/2017
	Notes	USD		USD
Gains (Losses) on investments	3	817,594		(958,465)
		817,594		(958,465)
Expenses
Bonus scheme payment charge		(1,512,251)		(610,107)
Administrative expenses	5	(606,143)		(518,093)
Operating loss		(1,300,800)		(2,086,665)
Net finance income	7	3,063		1,695
Loss before taxation		(1,297,737)		(2,084,970)
Taxation	8	-		-
Loss attributable to equity shareholders		(1,297,737)		(2,084,970)
Other comprehensive income for the period:
Change in fair value of available-for-sale financial assets	16	10,934,563		7,334,707
Total comprehensive income for the period		9,636,826		5,249,737
Loss per share
Basic and diluted gain (loss) per share (cents per share)	9	(4.55)		(7.51)

Statement of Financial Position (unaudited)

		At 30 June 2018 USD			At 31 December 2017 USD
	Notes
Non-current assets
Investments in equity shares	10	73,958,103				57,120,436
Convertible loan notes, SAFE's receivable	10	2,670,045				9,452,503
Total non-current assets		76,628,148				66,572,939
Current assets
Trade and other receivables	11	112,840				171,954
Current asset investment		300,000				-
Cash and cash equivalents	12	5,147,665				985,692
Total current assets		5,560,505				1,157,646
Total assets		82,188,653				67,730,585
Current liabilities
Trade and other payables	13	45,383				148,056
Total current liabilities		45,383				148,056
Non-current liabilities
Other payables	14	225,000				150,000
Total non-current liabilities		225,000				150,000
Total liabilities		270,383				298,056
Net assets		81,918,270				67,432,529
Equity
Share capital	15	34,790,174				31,453,510
Bonus scheme payment reserve	16	1,512,251				-
Fair value reserve	16	57,782,682				46,848,119
Retained losses	16	(12,166,837)				(10,869,100)
Total equity		81,918,270				67,432,529

Statement of Cash Flows (unaudited)

		For the six months ended 30/06/2018	For the six months ended 30/06/2017
		USD	USD
	Notes
Operating activities
Operating loss		(1,300,800)	(2,086,665)
Adjustments for non-cash items:
Profit on disposal of available-for-sale assets	3	(1,855,584)	-
Gain on conversion of loan notes to equity		-	-
Impairment of available-for-sale assets and accrued interest	3	1,058,571	981,552
Bonus scheme payment charge		1,512,251	610,107
Amortized costs of convertible notes receivable	3	651	1,678
		(584,911)	(493,328)
Changes in working capital:
Increase in trade and other receivables	11	(28,364)	(26,443)
(Decrease)/Increase in trade and other payables	13	(27,673)	58,782
Net cash used by operating activities		(640,948)	(460,989)
Investing activities
Interest received	7	3,063	1,695
Purchase of available-for-sale assets	10	(300,000)	(50,000)
Purchase of current asset investment		(300,000)	-
Proceeds from sale of available-for-sale assets		2,063,194	50,000
Net cash generated from investing activities		1,466,257	1,695
Financing activities
Proceeds from issue of shares	15	3,336,664	-
Net cash from financing activities		3,336,664	-
Increase/(decrease) in cash and cash equivalents		4,161,973	(459,294)
Cash and cash equivalents at the beginning of the period	12	985,692	1,057,098
Cash and cash equivalents at the end of the period	12	5,147,665	597,804

Statement of Changes in Equity (unaudited)

		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 2016		31,453,510	-	-	29,393,774	(8,288,863)	52,558,421
Total comprehensive income/(loss) for the year		-		-	17,454,345	(2,580,237)	14,874,109
Balance at 31 December 2017		31,453,510	-	-	46,848,119	(10,869,100)	67,432,529
Total comprehensive income/(loss) for the year		-	-	-	10,934,563	(1,297,737)	9,636,826
Issue of shares	15	3,336,664	-	-	-	-	3,336,664
Bonus scheme payment charge	16	-	-	1,512,251	-	-	1,512,251
Balance at 30 June 2018		34,790,174	-	1,512,251	57,782,682	(12,166,837)	81,918,270

NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2018

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 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 will seek to make investments in any region of the world.

The financial information relating to the six months ended 30 June 2018 is unaudited and does not constitute statutory accounts. The comparative figures for the financial year ended 31 December 2017 are not the Company's statutory accounts for that financial year. Statutory accounts for the year ended 31 December 2017 were approved by the Board of Directors on 14 March 2018. 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 on 15 August 2018 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 2017.

The Company's financial risk management objectives and policies are consistent with that disclosed in the financial statements for the year ended 31 December 2017.

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 30.06.2018	Average rate, for six months ended 30/06/2018
British pounds, £					1.3075	1.3570
Euro, €					1.1563	1.1943

3          Gain on investments

	For six months ended 30/06/2018		For six months  ended 30/06/2017
	USD		USD
Gross interest income from convertible notes receivable	21,232		24,765
Amortized costs of convertible notes receivable	(651)		(1,678)
Net interest income from convertible notes receivable	20,581		23,087
Profit on disposal of equity investments	1,855,584		-
Impairment of available-for-sale assets	(1,058,571)		(981,552)
Total gain (losses) on investments	817,594		(958,465)

4          Segmental analysis

Geographic information

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

Non-current financial assets

As at 31/12/2017

	USA	Israel	BVI	Estonia	Russia	Total
	USD	USD	USD	USD	USD	USD
Equity investments	50,734,468	2,351,598	127,525	3,847,749	59,096	57,120,436
Convertible notes & SAFE's	9,452,503	-	-	-	-	9,452,503
Total	60,186,971	2,351,598	127,525	3,847,749	59,096	66,572,939

As at 30/06/2018

	USA	Israel	BVI	Estonia	Russia	Total
	USD	USD	USD	USD	USD	USD
Equity investments	54,327,981	2,349,032	127,525	17,094,470	59,096	73,958,103
Convertible notes & SAFE's	2,670,045	-	-	-	-	2,670,045
Total	56,998,026	2,349,032	127,525	17,094,470	59,096	76,628,148

5          Administrative expenses

Administrative expenses include the following amounts:

	For six months ended 30/06/2018		For six months ended 30/06/2017
	USD		USD
Staff expenses (note 6)	312,601		290,893
Professional fees	139,875		134,933
Legal fees	22,069		2,643
Bank and LSE charges	15,995		7,742
Audit and accounting fees	11,218		12,512
Rent	47,298		23,649
Other expenses	46,713		58,467
Currency exchange loss/(gain)	10,374		(12,746)
	606,143		518,093

6          Staff expenses

	For six months ended 30/06/2018		For six months ended 30/06/2017
	USD		USD
Directors' fees	106,361		92,653
Wages and salaries	206,240		198,240
	312,601		290,893

Wages and salaries shown above include salaries and bonuses relating to the six months ended 30 June. These costs are included in administrative expenses.

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 2017: 5).

The Directors' fees for the six months ended 30 June 2018 and 2017 were as follows:

	For six months ended 30/06/2018		For six months ended 30/06/2017
	USD		USD
Alexander Selegenev	62,685		50,000
Yuri Mostovoy	25,000		25,000
James Joseph Mullins	13,676		12,663
Petr Lanin	5,000		5,000
	106,361		92,653

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, bonuses and reimbursement of business expenses.

7       Net finance income

	For six months ended 30/06/2018		For six months ended 30/06/2017
	USD		USD
Interest income	3,063		1,695
	3,063		1,695

8       Income tax expense

	For six months ended 30/06/2018		For six months ended 30/06/2017
	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 per share

The calculation of basic profit per share is based upon the net loss for the six months ended 30 June 2018 attributable to the ordinary shareholders of US$1,297,737 (for the six months ended 30 June 2017: net loss of US$2,084,970) and the weighted average number of ordinary shares outstanding calculated as follows:

Profit / (loss) per share	For six months ended 30/06/2018		For six months ended 30/06/2017
Basic loss per share (cents per share)	(4.55)		(7.51)
Loss attributable to equity holders of the entity	(1,297,737)		(2,084,970)

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 six months ended 30/06/2018		For six months ended 30/06/2017
Weighted average number of shares in issue
Ordinary shares	28,493,259		27,744,962
	28,493,259		27,744,962

10     Non-current financial assets

	At 30 June 2018		At 31 December 2017
Available-for-sale financial assets, USD:
Investments in equity shares (i)
- unlisted shares	73,958,103		57,120,436
Convertible notes receivable (ii)
- promissory notes	1,320,030		7,052,503
- SAFEs	1,350,015		2,400,000
	76,628,148		66,572,939

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 2017		48,335,876		3,650,596		51,986,472
Total gains or losses in 2017:
- in profit or loss - impairment		(893,131)		-		(893,131)
- in other comprehensive income		11,349,800		6,104,545		17,454,345
Purchases (including consulting & legal fees)		50,000		300,000		350,000
Disposal of investment (carrying value)		(1,823,120)		(502,638)		(2,325,758)
Conversion of notes to equity and net gain		101,011		(100,000)		1,011
Balance as at 31 December 2017		57,120,436		9,452,503		66,572,939
Total gains or losses in 2018:
- in profit or loss - impairment		1,074,254		(250,000)		824,254
- in other comprehensive income		10,784,549		150,015		10,934,564
Purchases (including consulting & legal fees)		-		300,000		300,000
Disposal of investment (carrying value)		(2,063,194)		(651)		(2,063,845)
Conversion and other movements		7,042,058		(6,981,822)		60,236
Balance as at 30 June 2018		73,958,103		2,670,045		76,628,148

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 2018:

Investee company	Date of initial investment	Value at 1 Jan 2018, USD	Additions to equity investments during the period, USD	Conversions from loan notes, USD	Gain/loss from changes in fair value of equity investments, USD	Profit/ impairment charge USD	Disposals, USD	Value at 30 Jun  2018, 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	-	-	(136,920)	(463,080)	-	-	10.00%
Wanelo	21.11.2011	5,369,400	-	-	-	-	-	5,369,400	4.69%
Backblaze	24.07.2012	10,533,334	-	-	-	-	-	10,533,334	13.67%
UM Liquidating Trust	15.07.2014	29,273	-	-	-	-	-	29,273	5.89%
Favim	24.10.2012	127,525	-	-	-	-	-	127,525	20.00%
Adinch	19.02.2013	300,000	-	-	-	(300,000)	-	-	22.43%
Wrike	12.06.2012	8,395,508	-	-	-	-	-	8,395,508	3.20%
Oriense	27.01.2014	59,096	-	-	-	-	-	59,096	5.45%
E2C	15.02.2014	136,781	-	-	-	-	-	136,781	5.51%
Drippler	01.05.2014	9,587	-	-	(2,566)	2,566	(2,566)	7,021	-
Remot3.it	13.06.2014	750,000	-	32,675	8,835	-	-	791,510	1.68%
Le Tote	21.07.2014	1,997,073	-	-	-	-	-	1,997,073	1.32%
Anews	25.08.2014	1,000,000	-	-	-	-	-	1,000,000	9.41%
Klear	01.09.2014	155,000	-	-	-	-	-	155,000	3.27%
Drupe	02.09.2014	595,142	-	-	-	-	-	595,142	7.46%
Taxify	15.09.2014	3,797,234	-	-	13,297,236	-	-	17,094,470	1.77%
Pipedrive	30.07.2012	9,127,249	-	-	1,286,943	1,853,018	(2,010,113)	10,257,097	2.46%
PandaDoc	11.07.2014	1,233,770	-	-	-	-	-	1,233,770	1.76%
VitalFields	20.12.2013	50,515	-	-	-	-	(50,515)	-	-
APPrise	16.08.2016	300,000		-	-	-	-	300,000	4.04%
Try the World	11.10.2016	18,250	-	-	-	(18,250)	-	-	-
Full Contact	11.01.2018	244,506	-	-	-	-	-	244,506	0.21%
ScentBird	13.04.2015	-	-	7,009,383	(3,668,979)	-	-	3,340,404	4.01%
Total		57,120,436	-	7,042,058	10,784,549	1,074,254	(2,063,194)	73,958,103

(ii)         Convertible loan notes as at 30 June 2018:

Investee company	Date of initial investment	Value at 1 Jan 2018, USD	Additions to convertible note investments during the period, USD	Amortized costs, USD	Internal movements, USD	Profit on disposal/ Impairment charge, USD	Disposals, USD	Value at 30 Jun 2018, USD	Term, years	Interest rate, %
Ninua	08/06/2011	250,000	-	-	-	(250,000)	-	-	1.5	5.00%
Sharethis	26/03/2013	570,126	-	(96)	-	-	-	570,030	5.0	1.09%
KitApps	10/07/2013	600,000	-	-	-	-	-	600,000	1.0	2.00%
ScentBird	13.04.2015	5,454,545	-	-	(5,454,545)	-	-	-	2.0	4.00%
Remot3.it	05.10.2015	27,277	-	-	(27,277)	-	-	-	1.0	7.70%
Send a Job	16.05.2016	150,555	-	(555)	-	-	-	150,000	2.0	4.00%
Total		7,052,503	-	(651)	(5,481,822)	(250,000)	-	1,320,030

(iii)        SAFEs as at 30 June 2018:

Investee company	Date of initial investment	Value at 1 Jan 2018, USD	Additions to convertible note investments during the period, USD	Amortized costs, USD	Gain/loss from changes in fair value of equity investments, USD	Internal movements, USD	Profit on disposal/ Impairment charge, USD	Disposals, USD	Value at 30 Jun 2018, USD
ScentBird	14.08.2015	1,500,000	-	-	-	(1,500,000)	-	-	-
Vinebox	06.05.2016	300,000	-	-	150,015	-	-	-	450,015
Sixa	28.07.2016	600,000	300,000	-	-	-	-	-	900,000
Total		2,400,000	300,000	-	150,015	(1,500,000)	-	-	1,350,015

11     Trade and other receivables

	At 30 June 2018		At 31 December 2017
	USD		USD
Prepayments	320,620		14,647
Interest receivable on promissory notes	90,970		142,217
Interest receivable on deposits	1,250		90
Loans to portfolio companies	-		15,000
	412,840		171,954

12     Cash and cash equivalents

The cash and cash equivalents as at 30 June 2018 include cash on hand and in banks, deposits, net of outstanding bank overdrafts. The effective interest rate at 30 June 2018 was 1.25%.

Cash and cash equivalents comprise the following:

	At June 2018		At December 2017
	USD		USD
Deposits	1,500,000		150,000
Bank balances	3,647,665		835,692
	5,147,665		985,692

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

		At 30 June 2018		At 31 December 2017
		USD		USD
Bank balances
BBB+ rating		3,647,665		835,692
		3,647,665		835,692
Deposits
BBB+ rating		1,500,000		150,000
		1,500,000		150,000
	5,147,665			985,692

13     Trade and other payables

	At 30 June 2018		At 31 December 2017
	USD		USD
Salaries and directors' fees payable	21,913		10,600
Trade payables	10,998		43,995
Other current liabilities	13		-
Accrued expenses	12,459		93,461
	45,383		148,056

14     Other payables

	At 30 June 2018		At 31 December 2017
	USD		USD
Other non-current liabilities	225,000		150,000
	225,000		150,000

15     Share capital

On 30 June 2018 the Company had an authorised share capital of unlimited shares of no par value and had issued share capital of:

	At 30 June 2018		At 31 December 2016
	USD		USD
Share capital	34,790,174		31,453,510
Issued capital comprises:	Number		Number
Fully paid ordinary shares	29,185,831		27,744,962
	Number of shares		Share capital, USD
Balance at 31 December 2017	27,744,962		31,453,510
Issue of shares	1,440,869		3,501,312
Share issue cost	-		(164,648)
Balance at 30 June 2018	29,185,831		34,790,174

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 2017	-	-	29,393,774	(8,288,863)	21,104,911
Loss for the year	-	-	-	(2,580,237)	(2,580,237)
Gain from changes in fair value	-	-	17,454,345	-	17,454,345
Balance as at 31 December 2017	-	-	46,848,119	(10,869,100)	35,979,019
Loss for the year	-	-	-	(1,297,737)	(1,297,737)
Gain from changes in fair value	-	-	10,934,563	-	10,934,563
Bonus scheme payment charge	-	1,512,251	-	-	1,512,251
Balance as at 30 June 2018	-	1,512,251	57,782,682	(12,166,837)	47,128,096

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 18.33% of the issued share capital of TMT. Thus Orgtekhnika is considered a related party. Together with other related expenses (support personnel, company car, security services, legal advice, etc.), the total office rent costs to TMT from 1 April 2017 were US$7,883 per month.

18     Subsequent events

In July 2018, the Company invested US$100,000 in natural language search interface for enterprise data FriendlyData (www.friendlydata.io)

 

END

 

 

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