THE INX DIGITAL COMPANY INC.
(FORMELY: VALDY INVESTMENT LTD.)
CONSOLIDATED INTERIM FINANCIAL STATEMENTS
AS OF MARCH 31, 2022
U.S. DOLLARS IN THOUSANDS
UNAUDITED
INDEX
Page
Consolidated Balance Sheets | F-2 |
Consolidated Statements of Comprehensive Income | F-3 |
Consolidated Statements of Changes in Equity | F-4 - F-5 |
Consolidated Statements of Cash Flows | F-6 |
Notes to Consolidated Interim Financial Statements | F-7-F-27 |
- - - - - - - - - - -
F-1
THE INX DIGITAL COMPANY INC.
CONSOLIDATED INTERIM BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)
March 31, | December 31, | |||
2022 | 2021 | |||
(Unaudited) | (Audited) | |||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | 46,608 | 24,581 | ||
Cash and cash equivalents held in Reserve Fund | 18,645 | 21,987 | ||
Receivable from related parties | 29 | 15 | ||
Trade receivable | 953 | 834 | ||
Customer funds | 4,892 | 4,270 | ||
Prepaid expenses and other receivables | 1,084 | 2,368 | ||
Total current assets | 72,211 | 54,055 | ||
Non-current assets: | ||||
Property, plant and equipment, net | 266 | 160 | ||
Digital assets | 2,513 | 1,000 | ||
Long term investments held in Reserve Fund | 17,378 | 14,036 | ||
Other financial assets | 400 | 400 | ||
Intangible assets, net | 4,277 | 4,394 | ||
Goodwill | 2,425 | 2,455 | ||
Loan receivable from related parties | 1,015 | 1,015 | ||
Rights-of-use-assets, net | 1,699 | 987 | ||
29,973 | 24,447 | |||
Total Assets | 102,184 | 78,502 | ||
Liabilities and Equity | ||||
Current liabilities: | ||||
Accounts payable and accrued expenses | 2,366 | 2,564 | ||
Accrued bonuses | - | 606 | ||
Funds due to customers | 4,892 | 4,270 | ||
Lease liability | 508 | 319 | ||
INX Token liability | 164,597 | 282,642 | ||
INX Token warrant liability | 6,116 | 9,814 | ||
Contingent consideration liability | 400 | 400 | ||
Total current liabilities | 178,879 | 300,615 | ||
Non-current liabilities: | ||||
Warrant liability | 4,553 | - | ||
Lease liability | 1,315 | 821 | ||
Total non-current liabilities | 5,868 | 821 | ||
Equity: | ||||
Share capital and share premium | 53,172 | 24,198 | ||
Contribution to equity by controlling shareholder | 582 | 582 | ||
Foreign currency translation reserve | 104 | 188 | ||
Treasury shares, at cost | (10) | - | ||
Accumulated deficit | (136,411) | (247,902) | ||
Total equity (deficit) | (82,563) | (222,934) | ||
Total Liabilities and Equity | 102,184 | 78,502 |
The accompanying notes are an integral part of the consolidated interim financial statements.
F-2
THE INX DIGITAL COMPANY INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
U.S. dollars in thousands (except share and per share data)
Three months | |||||
ended March 31, | |||||
2022 | 2021 | ||||
Note | (Unaudited) | ||||
Income: | |||||
Revenues (primarily from brokerage fees) | 1,561 | - | |||
Operating expenses (income): | |||||
Research and development | 253 | 1,608 | |||
Sales and marketing | 2,251 | 2,909 | |||
General and administrative | 1,706 | 5,783 | |||
Fair value adjustment of INX Token warrant liability to | |||||
employees and service providers | (3,698) | - | |||
Income (loss) from operations | 1,049 | (10,300) | |||
Fair value adjustment of INX Token liability | 5 | 118,045 | - | ||
Finance income (expenses) | (1,728) | 124 | |||
Listing expenses | 3 | (5,875) | - | ||
Net Income (loss) | 111,491 | (10,176) | |||
Amounts that will be or that have been reclassified to profit or | |||||
loss when specific conditions are met: | |||||
Adjustments arising from translating financial statements | |||||
from functional currency to presentation currency | 84 | - | |||
Total Comprehensive Income (loss) | 111,575 | (10,176) | |||
Earnings (Loss) per share, basic | $0.56 | $ (0.07) | |||
Earnings (Loss) per share, diluted | $0.53 | - | |||
Weighted average number of shares outstanding, basic | 200,046,764 | 147,976,845 | |||
Weighted average number of shares outstanding, diluted | 210,718,214 | - |
The accompanying notes are an integral part of the consolidated interim financial statements.
F-3
THE INX DIGITAL COMPANY INC.
CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
U.S. dollars in thousands (except share and per share data)
Contribution | Foreign | ||||||||||||
to equity by | currency | ||||||||||||
Ordinary shares | Share | controlling | translation | Treasury | Accumulated | Total | |||||||
Shares | premium | shareholder | reserve | shares | deficit | deficiency | |||||||
Balance as of January 1, 2022 | 167,331,410 | 24,198 | 582 | 188 | (247,902) | (222,934) | |||||||
Net income | - | - | - | - | 111,491 | 111,491 | |||||||
Other comprehensive income | - | - | - | (84) | - | (84) | |||||||
Issuance of shares for reverse takeover | - | ||||||||||||
transaction | 5,124,740 | 4,372 | - | - | 4,372 | ||||||||
Issuance of private placement shares, net | - | ||||||||||||
of issuance costs | 31,680,000 | 25,336 | - | - | 25,336 | ||||||||
Share based compensation to advisors | - | 1,834 | - | - | - | 1,834 | |||||||
Share based compensation | - | (2,568) | - | - | - | (2,568) | |||||||
Repurchase of shares | (15,500) | - | - | - | (10) | (10) | |||||||
Balance as of March 31, 2022 | (10) | ||||||||||||
(unaudited) | 204,120,650 | 53,172 | 582 | 104 | (136,411) | (82,563) |
The accompanying notes are an integral part of the consolidated interim financial statements.
F-4
THE INX DIGITAL COMPANY INC.
CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
U.S. dollars in thousands (except share and per share data)
Receivable on | Conversion option | ||||||||||
Ordinary shares | Share | account of | of convertible | Accumulated | Total | ||||||
Shares | premium | shares | Loans | deficit | deficiency | ||||||
Balance as of December 31, 2020 | 143,038,761 | $10,884 | (9) | $ 46 | $ (32,667) | $ (21,746) | |||||
Total comprehensive loss | - | - | - | - | (10,176) | (10,176) | |||||
Conversion of CLA | 10,029,193 | 194 | - | (46) | - | 148 | |||||
Conversion of SAFE | 3,980,843 | 1 | - | - | - | 1 | |||||
Exercise of SAFE warrant | 3,206,903- | 570 | - | - | - | 570 | |||||
Share-based payment | -- | 5,968 | - | - | - | 5,968 | |||||
Balance as of March 31, 2021 | |||||||||||
(unaudited) | 160,255,700 | $17,617 | (9) | $ - | $ (42,843) | $ (25,235) |
The accompanying notes are an integral part of the consolidated interim financial statements.
F-5
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Valdy Investments Ltd. published this content on 02 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2022 13:51:03 UTC.