TechFinancials Inc. - Interim Report for the Six Months to 30 June 2022

30 September 2022

TechFinancials, Inc.

("TechFinancials" or the "Company")

Unaudited Interim Report for the Six Months Ended 30 June 2022

TechFinancials Inc. (AQSE: TECH), today announces its unaudited interim results for the six-month period ended 30 June 2022 ("H1 2022").

Financial Overview

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

"In the first half of the year the Company continued to focus on administrative cost reductions and will continue to look for investment opportunities to maximize the Company's value, leveraging its available cash."

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

For further information:

Chairman's Statement

In H1 2022 the Company continued to focus on reducing costs. The Board decided to invest some amounts in listed companies. The Company will continue to look for new ways to increase its value.

Outlook

We will continue to look for opportunities to materialize our assets or join forces with other companies in order to be able move forward.

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

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

Eitan Yanuv

Independent Non-Executive Chairman

29 September 2022

Executive's Board Member Statement

Financial Results

In 2020, the Company closed all of its operating historical businesses and since then the Company has not recorded any income.

The operating loss for the period was US$0.074m (H1 2021: loss of US$ 0.13m); the operating expenses for the period were attributed mainly to general and administrative costs associated with being a listed Company.

Financial expenses for the period were US$ 0.089m, attributed predominantly to US$0.06m loss from exchange rate differences.

No taxes on income were recorded in the period (H1 2021: US$ 0.01m).

The loss after taxation for the period attributable to shareholders of the Company was US$ 0.16m (H1 2021: loss of US$ 0.10m).

The Company's cash position for the period ended 30 June 2022 was US$0.68m (31 December 2021: US$1.3m).

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

Eitan Yanuv

Chairman

29  September 2022

Statement of Comprehensive Income

For the six months period ended 30 June 2022

Consolidated Statement of financial position

As of 30 June 2022

Consolidated Statement of changes in equity

For the six months period ended 30 June 2022

Consolidated statement of cash flows

For the six months period ended 30 June 2021

Notes to the financial statements

1.    General Information

TechFinancials, Inc, (the "Company") was 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 Company for each of the periods ending 30 June 2022, 30 June 2021 and 31 December 2021.

Basis of preparation

As permitted, the Company 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 2021, 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 Company's 2021 audited financial statements. Statutory financial statements for the year ended 31 December 2021 were approved by the Board of Directors on 30 July 2022.

The Directors approved these condensed interim financial statements on 29 September 2022.

Risks and uncertainties

The key risks that could affect the Company's short and medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Company's 2021 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 financial information for the 6 months ended 30 June 2022 and the 6 months ended 30 June 2021 has not been audited.

No dividends have been paid in the period (2021: $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 have not changed during the interim period and are set out in note 3(v) of the Company's 2021 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 represent approximately their fair values.

5.    Trade and other payables