TechFinancials Inc. - Audited Results to 31 December 2021

TechFinancials, Inc

("TechFinancials" or the "Company")

29 July 2022

Audited Annual Report for the year ended 31 December 2021

Financial Highlights

·   No Revenues in 2021 following cessation of operations.

·   Pre-tax loss attributable to shareholders of US$0.553 million (2020: profit of US$1.0   million)

·   Cash position of US$0.92 million as at 31 December 2021 (2020: US$1.4 million)

·   Basic earnings per share ('EPS') (US$0.0064) (2020: (US$0.016))

·   In October 2021, the Company's sold its subsidiary Cedex Holdings Limited ("Cedex")

·   In June 2021, the Company stuck off Footies Ltd. ("Footies)

·   In 2021, the Company acquired shares to take minority holdings in a number of companies listed on the LSE and AIM

Operational Highlights 

Operational Cost Reduction

·   The Company decided to close all its subsidiaries and initiated the strike-off of its entities in Israel in 2021. The strike off of both TechFinancials Israel 2014 Ltd and Softbox Technologies Ltd was initiated in H2 2021 and concluded in March 2022.

·   The Company sold Cedex Holdings Limited in October 2021.

Investment  Activities

·   The Company invested small amounts in several listed entities in 2021. This activity resulted in profit of $86k.

·   As of today, the Company has only one legal entity - TechFinancials Inc, and as results the costs of operating the company is now minimal.

·   In November 2020, the Company signed with RenewSenses Ltd., an Israeli start-up, a Simple Agreement for Future Equity ("SAFE") following which the Company invested in RenewSenses a total amount of US$ 152k. This was accounted for as a financial asset through profit and loss.

As of December 31, 2021, RenewSenses has failed to raise additional capital for its operations and in the beginning of 2022, it was forced to make all employees redundant. As a result of the conditions that existed at year end (inability of raise funds), the financial asset fair valued was revalued to a nil balance and a total loss of $152k recognized.

Chairman's Statement

2021 was a year in which the Company focused on reducing costs and consolidating its assets. We initiated the closure of all our subsidiaries and sold Cedex.

The Board decided to invest some amounts in listed companies and was able to generate good returns from these investments. The Company will continue to look for new ways to increase its value.

Dividends

The Board will not be recommending a final dividend to the shareholders of the Company for the year ended 2021 (2020: $nil).

Outlook and current trading

The year was a turning point for the Group, where we initiated the closure of all our subsidiaries and consolidated all our assets, while seeking new investment opportunities to increase the value of the Company.

The Group will continue to look for investment opportunities to maximize the Company's value, leveraging its available cash.

I would like to thank our shareholders for their continued support in what has been a difficult year.

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

Eitan Yanuv

Independent Non-Executive Chairman

29 July 2022

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

For further information:

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2021

Consolidated Statement of Financial Position

As at 31 December 2021

The Financial Statements were approved by the Board of Directors and authorised for issue on 29 July 2022 and are signed on its behalf by:

…………………………………………

Director

Consolidated statements of changes in equity

For the year ended 31 December 2021

Consolidated statements of cash flows

For the year ended 31 December 2021

The comparative cashflow has been restated to correct the allocation of cashflow movements.