Interim results

NFT Investments PLC

16 August 2023

 

Press Release

16 August 2023

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.

NFT Investments PLC

("NFT Investments" or "the Company"")

Interim results

NFT Investments PLC (AQSE: NFT), an investment firm, announces its unaudited results for the six months ended 30 June 2023.

Comments from Jonathan Bixby, Executive Chairman of NFT Investments:

I am delighted to report the Company's interim results for the six months ended 30 June 2023.

The Company had a net asset value of £33.983 million (3.37p per share). This is an increase of £8.953m (35.9%) in the six month reporting period.

I am extremely proud of our investment discipline throughout the "crypto winter".  This discipline is now starting to pay off as crypto starts to rise ahead of the halving event in April 2024. We remain committed to returning capital to investors and have successfully accomplished the reduction of the Company's share capital by way of cancellation of its share premium account announced on 20 July 2023. We remain very bullish on the medium-term crypto market.

Finally, we believe that the Company's strong position and the value of its assets are not fairly reflected in the share price. The Company's share price on 15 August 2023 of 1.65p represents a 51% discount to our 30 June 2023 net asset value.

I would like to take this opportunity to thank all our shareholders for their ongoing support.

Jonathan Bixby, Executive Chairman

The Directors of NFT Investments 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:

NFT Investments
Jonathan Bixby Executive Chairman	[phone]
First Sentinel
Corporate Adviser Brian Stockbridge	[phone]
Tennyson Securities
Corporate Broker Peter Krens	[phone]

About NFT Investments:

NFT Investments PLC is an investment company specialising in the market for non-fungible tokens ("NFTs") and is the first ever NFT vehicle to list in a major jurisdiction worldwide. The Company invests in a diversified portfolio of NFTs, cryptocurrency, and/or in companies or funds which have exposure to NFT or blockchain technology. The Company's leadership team have an extensive track record in the cryptocurrency sector and previously founded Argo Blockchain PLC, a global crypto miner. NFT Investments is headquartered in London, UK and its shares are listed on the Aquis Stock Exchange Growth Market under the ticker symbol NFT. https://www.nftinvest.pro/

NFT Investments plc

Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2023

		Unaudited			Audited
		Six months ended 30 June			Year ended 31 December
	Note	2023	2022		2022
		£	£		£
Revenue		-	-		-
Loss on disposal of digital assets and tokens		(25,554)			(65,548)
Fair valuation movements (including impairment and exchange differences) in investments		(318,593)	96,875		(2,686,079)
Fair valuation movements (including exchange differences) in digital assets and tokens		10,082,738	(4,060,615)		(5,465,486)
		9,738,591	(3,963,740)		(8,217,113)
Share based payment	3	(262,600)	-		-
Administrative expenses		(805,286)	(705,157)		(1,556,872)
Operating Profit/(Loss)		8,670,705	(4,668,897)		(9,773,985)
Finance income		-	448,891		402,083
Profit/(Loss) before and after taxation and total comprehensive profit/(loss) for the period		8,670,705	(4,220,006)		(9,371,902)
Profit/(Loss) per ordinary share:
Basic profit/(loss) per share on loss for the year	4	0.86	(0.42)		(0.93)
Diluted profit/(loss) per share on loss for the year	4	0.86	(0.42)		(0.93)

NFT Investments plc

Consolidated Statement of Financial Position            

For the six months ended 30 June 2023

		Unaudited			Audited
		Six months ended 30 June			Year ended 31 December
	Note	2023	2022		2022
		£	£		£
Non-Current Assets
Intangible assets	5	27,786,002	3,208,708		15,448,382
Investments	6	3,372,592	6,474,140		3,691,186
Total non-current assets		31,158,594	9,682,848		19,139,568
Current Assets
Trade and other receivables		128,265	171,406		125,765
Cash and cash equivalents		2,782,870	20,412,854		5,847,274
Total current assets		2,911,135	20,584,260		5,973,039
Total assets		34,069,729	30,267,108		25,112,607
Shareholders' equity
Share capital		1,007,000	1,003,000		1,003,000
Share premium		33,359,133	33,323,133		33,323,133
Share based payments reserve		3,188,508	2,925,908		2,925,908
Retained earnings		(3,570,952)	(7,089,761)		(12,241,657)
Total shareholders' equity		33,983,689	30,162,280		25,010,384
Current Liabilities
Trade and other payables		86,040	104,828		102,223
Total liabilities		86,040	104.828		102,223
Total equity and liabilities		34,069,729	30,267,108		25,112,607

NFT Investments plc

Company Statement of Financial Position      

For the six months ended 30 June 2023

				Unaudited				Audited
				Six months ended 30 June				Year ended 31 December
			Note	2023	2022			2022
				£	£			£
Non-Current Assets
Intangible assets			5	27,786,002	3,208,708			15,448,382
Investments			6	3,372,593	6,474,140			3,691,187
Total non-current assets				31,158,595	9,682,848			19,139,569
Current Assets
Trade and other receivables				1,910,337	171,406			157,837
Cash and cash equivalents				1,000,797	20,412,854			5,815,201
Total current assets				2,911,134	20,584,260			5,973,038
Total assets				34,069,729	30,267,108			25,112,607
Shareholders' equity
Share capital				1,007,000	1,003,000			1,003,000
Share premium				33,359,133	33,323,133			33,323,133
Share based payments reserve				3,188,508	2,925,908			2,925,908
Retained earnings				(3,570,952)	(7,089,761)			(12,241,657)
Total shareholders' equity				33,983,689	30,162,280			25,010,384
Current Liabilities
Trade and other payables				86,040	104,828			102,223
Total liabilities				86,040	104.828			102,223
Total equity and liabilities				34,069,729	30,267,108			25,112,607
NFT Investments plc Consolidated and Company Statement of Changes in Equity       As at 30 June 2023
	Share capital	Share Premium		Share-based payments reserve	Retained earnings	Total
	£	£		£	£	£
Unaudited
Six months ended 30 June 2023
At 1 January 2023	1,003,000	33,323,133		2,925,908	(12,241,657)	25,010,384
Profit for the period and total comprehensive profit	-	-		-	8,670,705	8,670,705
Shares issued during the period	4,000	36,000		-	-	40,000
Share based payment	-	-		262,600	-	262,600
At 30 June 2023	1,007,000	33,359,133		3,188,508	(3,570,952)	33,983,689
Unaudited
Six months ended 30 June 2022
At 1 January 2022	1,003,000	33,323,133		2,925,908	(2,869,755)	34,382,286
Loss for the year and total comprehensive loss	-	-		-	(4,220,006)	(4,220,006)
At 30 June 2022	1,003,000	33,323,133		2,925,908	(7,089,761)	30,162,280
Audited
Year ended 31 December 2022
At 1 January 2022	1,003,000	33,323,133		2,925,908	(2,869,755)	34,382,286
Loss for the year and total comprehensive loss	-	-		-	(9,371,902)	(9,371,902)
At 31 December 2022	1,003,000	33,323,133		2,925,908	(12,241,657)	25,010,384

¹ There were no transactions in the Subsidiary and thus no impact on the Statement of Changes in Equity

NFT Investments plc

Consolidated Statement of Cash Flows           

For the six months ended 30 June 2023

		Unaudited			Audited
		Six months ended 30 June			Year ended 31 December
		2023	2022		2022
		£	£		£
Operating activities
Profit/(loss) for the year		8,670,705	(4,220,006)		(9,371,902)
Adjustments:
Loss on disposal of digital assets and tokens		25,554	-		65,548
(Profit)/loss on revaluation of digital assets and tokens		(11,235,686)	265,080		7,477,130
Loss on valuation of investments		2,258,239	4,309,208		2,258,239
Amortisation of software development costs		28,750	-		-
Share based payments		262,600	-		-
Foreign exchange		(1,051,158)	(361,955)		(475,901)
Finance Income		-	(448,891)		(402,083)
Working capital adjustments:
Increase in trade and other receivables		(2,500)	(45,641)		-
Decrease in trade and other payables		(16,183)	(19,599)		(22,204)
Net cash used in operating activities		(1,059,679)	(521,804)		(471,173)
Investing activities
Purchase of digital assets and tokens		(3,174,552)	(600,000)		(15,949,540)
Purchase of fixed assets investments		-	(817,957)		(817,958)
Sale of intangible fixed assets		1,129,827	-		780,138
Interest received		-	448,891		402,083
Net cash used in investing activities		(2,044,725)	(969,066)		(15,585,277)
Financing activities
Share issue		40,000	-		-
Net cash from financing activities		40,000	-		-
Net decrease in cash and cash equivalents		(3,064,404)	(1,490,870)		(16,056,450)
Cash and cash equivalents at start of year		5,847,274	21,903,724		21,903,724
Cash and cash equivalents at end of year		2,782,870	20,412,854		5,847,274

NFT Investments plc

Company Statement of Cash Flows     

For the six months ended 30 June 2023

		Unaudited			Audited
		Six months ended 30 June			Year ended 31 December
		2023	2022		2022
		£	£		£
Operating activities
Profit/(loss) for the year		8,670,705	(4,220,006)		(9,371,902)
Adjustments:
Loss on disposal of digital assets and tokens		25,554	-		65,548
(Profit)/loss on revaluation of digital assets and tokens		(11,235,686)	265,080		7,477,130
Loss on valuation of investments		2,258,239	4,309,208		2,258,239
Amortisation of software development costs		28,750	-		-
Share based payments		262,600	-		-
Foreign exchange		(1,051,158)	(361,955)		(475,901)
Finance Income		-	(448,891)		(402,083)
Working capital adjustments:
Increase in trade and other receivables		(1,752,500)	(45,641)		(32,072)
Decrease in trade and other payables		(16,183)	(19,599)		(22,204)
Net cash used in operating activities		(2,809,679)	(521,804)		(503,245)
Investing activities
Purchase of digital assets and tokens		(3,174,552)	(600,000)		(15,949,540)
Purchase of fixed assets investments		-	(817,957)		(817,959)
Sale of intangible fixed assets		1,129,827	-		780,138
Interest received		-	448,891		402,083
Net cash used in investing activities		(2,044,725)	(969,066)		(15,585,278)
Financing activities
Share issue		40,000	-		-
Net cash from financing activities		40,000	-		-
Net decrease in cash and cash equivalents		(4,814,404)	(1,490,870)		(16,088,523)
Cash and cash equivalents at start of year		5,815,201	21,903,724		21,903,724
Cash and cash equivalents at end of year		1,000,797	20,412,854		5,815,201

Notes to the Interim Financial Statements for the six months ended 30 June 2023     

1.   Basis of preparation

The interim results of NFT Investments plc are prepared in accordance with the requirements of IAS 34 Interim Financial Reporting and are prepared in accordance with the accounting policies set out in the last financial statements for the year ended 31 December 2022. NFT Investments plc expects to apply the same policies in its financial statements for the year ending 31 December 2023.

The financial information for the six months ended 30 June 2023 and for the six months ended 30 June 2022 have neither been audited nor reviewed by the Company's auditors. The comparative financial information for the year ended 31 December 2022 has been derived from the audited financial statements for that period.

Basis of Consolidation

Where the Company has control over an investee, it is classified as a subsidiary. The Company controls an investee if all three of the following elements are present: power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power to affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a change in any of these elements of control.

The consolidated financial statements present the results of the Company and its subsidiaries as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. All subsidiaries have a reporting date of December.

The consolidated financial statements incorporate the results of business combinations using the acquisition method. In the statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date on which control ceases.

On consolidation, the results of overseas operations are translated into pounds sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations, including goodwill arising on the acquisition of those operations, are translated at the rate ruling at the reporting date.

Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income and accumulated in the foreign exchange reserve. Exchange differences recognised in profit or loss in Group entities' separate financial statements on the translation of long-term monetary items forming part of the Group's net investment in the overseas operation concerned are reclassified to other comprehensive income and accumulated in the foreign exchange reserve on consolidation.

On disposal of a foreign operation, the cumulative exchange differences recognised in the foreign exchange reserve relating to that operation up to the date of disposal are transferred to the consolidated statement of comprehensive income as part of the profit or loss on disposal.

Profit/(loss) of Parent Company

As permitted by Section 408 of the Companies Act 2006, the statement of comprehensive income of the Parent Company is not presented as part of these financial statements. The Parent Company's profit/(loss) for the financial period was £8,670,705 (period ending 30 June 2022: (£4,220,006) and year ended 31 December 2022: (£9,371,902).

2.   Critical accounting estimates and judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Investments

On acquisition, investments are valued at cost as this is deemed to be the fair value. Subsequent to this, management uses valuation techniques and other relevant information to determine the fair value of financial instruments (where active market quotes are not available) and non-financial assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument. Management bases its assumptions on observable data as far as possible but this is not always available. In that case management uses the best information available. Estimated fair values may vary from the actual prices that would be achieved in an arm's length transaction at the reporting date.

At each balance sheet date, a review of impairment in value is undertaken and the Company follows the guidance of IFRS 9 to determine when a financial asset is impaired. This determination requires significant judgement. In making this judgement, management evaluates, among other factors, the duration and extent to which the fair value of an investment is less than its cost, and the financial health of, and short-term business outlook for, the investee, including factors such as industry and sector performance, changes in technology and operational, financing cash flow and proposed fundraising.

3.   Share based payments

The Company operates a number of equity-settled, share-based compensation plans, under which the entity receives services from employees as consideration for equity instruments (options) of the Company. The fair value of the employee services received in exchange for the grant of options is recognised as an expense. The total amount to be expensed is determined by reference to the fair value of the options granted:

•          including any market performance conditions;

•          excluding the impact of any service and non-market performance vesting conditions (for example, profitability, sales growth targets and remaining an employee of the entity over a specified time period); and

•           excluding the impact of any non-vesting conditions (for example, the requirement of employees to save).

Assumptions about the number of options that are expected to vest include consideration of non-market vesting conditions. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each reporting period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions. It recognises the impact of the revision to original estimates, if any, in the Statement of Comprehensive Income, with a corresponding adjustment to equity.

When the options are exercised, the Company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.

4.   Profit/(loss) per ordinary share

The calculation of a basic profit/(loss) per share is based on the profit/(loss) for the period attributable to equity holders of the Company and on the weighted average number of shares in issue during the period.

Diluted profit/(loss) per share is calculated adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.

For the six months ended 30 June 2023, there is no difference between the basic earnings per share and the diluted earnings per share. The exercise prices of the outstanding share options are above the average market price of the shares and are therefore not dilutive under IAS 33 Earnings Per Share.

For the year-ended 31 December 2022 and six months ended 30 June 2023, there is no difference between the diluted loss per share and the basic loss per share presented due to the loss position of the Company.

5.   Intangible Assets

Group and Company

		Digital assets and tokens £		Software development costs £	Total £
Cost
Balance at 1 January 2023		15,160,882		287,500	15,448,382
Additions		3,174,552		-	3,174,552
Disposals		(1,129,827)		-	(1,129,827)
Net fair value gain for the year		10,321,645		-	10,321,645
As at 30 June 2023		27,527,252		287,500	27,814,752
Accumulated Amortisation
Balance at 1 January 2023		-		-	-
Charge for the period		-		28,750	28,750
As at 30 June 2023		-		28,750	28,750
Net book value as at 30 June 2023		27,527,252		258,750	27,786,002

		Digital assets and tokens £		External software development costs £	Total £
Cost
Balance at 1 January 2022		6,917,916		-	6,917,916
Additions		600,000		-	600,000
Disposals		-		-	-
Net fair value loss for the year		(4,309,208)		-	(4,309,208)
As at 30 June 2022		3,208,708		-	3,208,708
Net book value as at 30 June 2022		3,208,708		-	3,208,708
Cost
Balance at 1 January 2022		6,917,916		-	6,917,916
Additions		15,662,040		287,500	15,949,540
Disposals		(780,138)		-	(780,138)
Net fair value loss for the year		(6,638,936)		-	(6,638,936)
As at 31 December 2022		15,160,882		287,500	15,448,382
Net book value as at 31 December 2022		15,160,882		287,500	15,448,382

The breakdown for all digital assets and tokens held at 30 June 2023 are listed below:

Token name		Number of tokens		Platform traded on		£
Bitcoin BTC		626		Copper, Cold Storage		15,066,741
DigitalBits XDB		751,500		Copper		303
Ethereum ETH		6,794		Copper, Cold Storage		10,361,456
Optimism OP		732,899		Cold Storage		784,100
Cosmos ATOM		57,902		Copper		426,549
NEAR Protocol		225,362		Copper		245,747
Lido DAO		396,144		Copper, Cold Storage		642,356
						27,527,252

6.   Investments

Group

	Six months ended 30 June			Year ended 31 December
	2023 £	2022 £		2022 £
At start of the period	3,691,186	5,559,308		5,559,308
Additions	-	817,957		817,958
Impairments	-	-		(1,735,824)
Revaluations	(148,593)	(265,080)		(522,415)
Exchange difference	(170,001)	361,955		(427,841)
At end of the period	3,372,592	6,474,140		3,691,186

Company

	Six months ended 30 June			Year ended 31 December
	2023 £	2022 £		2022 £
At start of the period	3,691,187	5,559,308		5,559,308
Additions	-	817,957		817,959
Impairments	-	-		(1,735,824)
Revaluations	(148,593)	(265,080)		(522,415)
Exchange difference	(170,001)	361,955		(427,841)
At end of the period	3,372,593	6,474,140		3,691,187

The country of incorporation and investment class for investments held by the Group at 30 June 2023 are listed below:

	£	Country of Incorporation	Investment class
Pioneer Media Holdings Inc	5,944	Canada	Listed
AEON International	786,650	Hong Kong	Unlisted
Big Head Club	175,467	Canada	Unlisted
NFT Studios Ltd	786,650	UK	Unlisted
Afterparty Inc	652,920	USA	Safe note
Big Whale Labs Inc	178,311	Canada	Safe note
Oliver Labs Inc	786,650	USA	Safe note
	3,372,592

The Company has the following investment directly in subsidiaries at 30 June 2023:

Name and registered address of company	Share- holding	Value of share-holding £	Country of incorporation	Nature of business
1319644 B.C. Ltd 700-401 West Georgia Street, Vancouver BC V6B 5A1 Canada	100%	1	Canada	Company has not traded during the period

 

END