TechFinancials Inc. - Interim Report to 30 June 2021

28 September 2021

TechFinancials, Inc.

("TechFinancials" or the "Company" or the "Group")

Unaudited Interim Report for the Six Months Ended 30 June 2021

TechFinancials Inc. (AQSE: TECH), today announces its unaudited interim results for the six month period ended 30 June 2021 ("H1 2021").

Financial Overview

Asaf Lahav, Group Chief Executive Board Member of TechFinancials, commented:

"In the first half of the year the Company continued to focus on administrative cost reductions, completed the strike off of Footies Ltd. and started the process to strike off its subsidiaries; TechFinancials (Israel) 2014 Ltd., Softbox Technologies Ltd. and Cedex Trading UK."

"The Company plans to continue its attempts to sell all or part of its interest in Cedex to a third party."

The directors of the Company accept responsibility for the contents of this announcement.

For further information:

Chairman's Statement

In H1 2021, the Company completed the strike off of Footies Ltd. and continued to oversee its investments and look for short term investment opportunities.

Outlook

We will continue to look for opportunities to materialise our assets and to increase value for our shareholders. We will also continue to strike off subsidiaries in order to clean the group structure. 

I would like to thank our shareholders for their continued support in what has been a difficult period globally as well as to the Group.  

We look forward to updating the market on our progress in due course.

Eitan Yanuv

Independent Non-Executive Chairman

28 September 2021

Executive's Board Member Statement

Financial Results

In 2020, The Group closed all its operating historical businesses and for the first time since the Company became public it didn't record any turnover in the six months ended 30 June 2021.

The operating loss for the period was US$0.13m (H1 2020: loss of US$ 0.54m); the operating expenses for the period were attributed mainly to general and administrative costs associated with being a listed Company.

Financial income for the period was US$0.04m, attributed predominantly to a US$0.06m gain from  realisation of a short term investment in tradable securities and other financial expenses of US$0.02m.

Taxes for the period were US$0.01m (H1 2020: US$ 0.01m).

The loss after taxation for the period attributable to shareholders of the Company was US$0.10m (H1 2020: loss of US$0.55m).

The Group's cash position for the period ended 30 June 2021 was US$1.33m (31 December 2020: US$1.42m).

The unaudited interim financial results have not been reviewed by the Company's auditor.

Asaf Lahav

Executive Board Member

28  September 2021

Statement of Comprehensive Income

For the six month period ended 30 June 2021

Consolidated Statement of financial position

As of 30 June 2021

Consolidated Statement of changes in equity

For the six month period ended 30 June 2021

Consolidated statement of cash flows

For the six month period ended 30 June 2021

Notes to the financial statements

1.    General Information

TechFinancials, Inc, (the "Company") and its subsidiaries (together, the "Group") were engaged until the end of 2020 in the development of blockchain-based digital assets solutions and licensing of financials trading platforms to businesses. The financial statements present the consolidated results of the Group for each of the periods ending 30 June 2021, 30 June 2020 and 31 December 2020.

Group changes in the period

In June 2021, Footies Ltd the Company's fully owned subsidiary has been struck off.

Basis of preparation

As permitted, the Group has chosen not to adopt International Accounting Standard 34 'Interim Financial Reporting' in preparing these interim financial statements. The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2020, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

The interim financial information set out above does not constitute statutory accounts. The information has been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the European Union.

The accounting policies applied in preparing the interim financial information are consistent with those that have been adopted in the Group's 2020 audited financial statements. Statutory financial statements for the year ended 31 December 2020 were approved by the Board of Directors on 30 July 2021. The report of the auditors on those financial statements were not modified in respect of the matter mentioned, however, has drawn attention to material uncertainty related to going concern.

The Directors approved these condensed interim financial statements on 28 September 2021.

Risks and uncertainties

The key risks that could affect the Group's short and medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Group's 2020 Annual Report and Financial Statements, a copy of which is available on the Company's website: www.techfinancials.com.

2.    Accounting policies

The condensed consolidated interim financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain financials assets and liabilities at fair value through the statement of profit and loss.

The business is not subject to seasonal variations.

The financial information for the 6 months ended 30 June 2021 and the 6 months ended 30 June 2020 has not been audited.

No dividends have been paid in the period (2020: $nil).

Critical accounting estimates and judgements

The preparation of condensed consolidated interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the end of the reporting period. Significant items subject to such estimates and have not changed during the interim period and are set out in note 3(v) of the Group's 2020 Annual Report and Financial Statements.

3.    Earnings per share

The calculation of earnings per share is based on the following losses and number of shares:

4.    Trade and other receivables

The carrying amounts of trade and other receivables approximate their fair values.

5.    Trade and other payables

6.    Subsequent events

In July 2021, the Company sold all its holdings recorded as of 30 June 2021, for a total consideration of 51k GBP.
On 18 August 2021, the Company participated in the placing of HEMOGENYX PHARMACEUTICALS, a listed company in LSE, for a total consideration of 14.6k GBP.

In July 2021, Cedex Trading UK a fully owned subsidiary of Cedex Trading Ltd,  the Company's fully owned subsidiary was struck off.