31 July 2024
Supernova Digital Assets PLC
("Supernova" or the "Company")
Interim results
Supernova (AQSE: SOL), a company specialising in the Solana ecosystem, is pleased to announce its unaudited financial results for the six months ended 30 April 2024.
The Directors of Supernova take responsibility for this announcement.
For further information please contact:
| Supernova Digital Assets | |
| Mike Edwards Executive Chairman | +44 7858 888 007
|
| First Sentinel | |
| Corporate Adviser Brian Stockbridge
| +44 7876 888 011 |
About Supernova Digital Assets:
The Company will look to identify investment and business building opportunities in the high growth Solana and crypto currency ecosystem. The Board intends to deploy the majority of the Company's cash resources in the acquisition of minority interests in a number of different, yet to be identified, companies in the broad Solana and crypto currency ecosystem, and to apply expertise to the business operations and strategic plans of these companies. The experience, operational skills and contacts of the Board are intended to act as an accelerator to start-ups and early-stage companies to maximise their profit opportunity. It is anticipated that returns to Shareholders will be delivered through a combination of an appreciation in the Company's share price and through the adoption of a progressive dividend policy. The Company's Directors have an established track record, experience and networks in the crypto currency sector, digital assets management, as well as the media industry to drive value creation.
Executive Chairman's statement
For the six month's ended 30 April 2024
During the course of the year ending 31 October 2023 the Board of Directors of the Company decided that best interests were served by divesting a number of non-core businesses and focusing on the Solana cryptocurrency ecosystem. It is the Board's opinion that Solana ("SOL") will be integral to the success of the crypto environment and there will be an increasing level of development of system architecture that sits on the Solana ecosystem.
The Board believes there are considerable value accretive opportunities available in the Solana cryptocurrency ecosystem and, during the six month period to 30 April 2024, the Company sold its Ethereum position and invested the proceeds into SOL. This resulted in the Company holding a SOL balance at 30 April 2024 of 27,778 tokens with a valuation on that date of US$3.8m. As at 30 July 2024 this SOL balance is valued at US$5.0m.
The Company acquired Hyperslot PTE Limited, a Solana Validator on 18 March 2024. This is a strategic transaction in that it allows the Company to stake its SOL "in-house" and thus retain all staking rewards. These rewards are expected to be approximately 1,900 SOL per year and, as such, much of the Company's slimmed-down operating costs will be met by this.
In addition, the Company has 30,000,000 shares in Phoenix Digital Assets plc ("PNIX") (previously called NFT Investments plc). The Company decided not to participate in the PNIX Tender Offer and, as of today's date, still holds 30,000,000 PNIX shares. The Company also owns 76,332,000 shares in StreaksAI plc and holds this position so at to have exposure to the burgeoning AI sector.
Finally, the Company is well advanced with the processes necessary to allow it to buy back its own shares. The Company recognises that its shares continue to trade at a significant discount to the Net Asset Value and it will use this mechanism to return value to shareholders.
Michael Edwards
Executive Chairman
31 July 2024
Statement of Comprehensive Income
| |
| Unaudited |
| Audited | |
| |
Note | Six months ended 30 April |
| Year ended 31 October | |
| |
| 2024 | 2023 |
| 2023 |
| |
| £'000 | £'000 |
| £'000 |
| Revenue | | - | - | | - |
| Fair valuation movement in investments | | (58) | 138 | | (2,437) |
| Fair valuation movement in intangible assets - cryptocurrencies | | 2,224 | - | | - |
| | | 2,166 | 138 | | (2,437) |
| Other operating income | | 25 | 93 | | 128 |
| Profit/(loss) on disposal of investments | | 100 | - | | (3,799) |
| Administrative expenses | | (198) | (544) | | (1,034) |
| Operating Profit/(loss) | | 2,093 | (313) |
| (7,142) |
| Finance income | | - | 103 | | 171 |
| Profit/(loss) before taxation |
| 2,093 | (210) |
| (6,971) |
| Taxation | | - | - | | - |
| Profit/(loss) after taxation | | 2,093 | (210) | | (6,971) |
| Other comprehensive income |
|
|
|
|
|
| Items that may be reclassified subsequently to profit or loss |
|
|
|
|
|
| Gain on cryptocurrencies held | 4 | - | - |
| 264 |
| Total comprehensive profit/(loss) for the period | | 2,093 | (210) |
| (6,707) |
|
| | | | | |
| Earnings/(loss) per ordinary share: | | | | | |
| Basic earnings/(loss) per share | 3 | 0.16p | (0.02p) | | (0.58p) |
| Diluted earnings/(loss) per share | 3 | 0.16p | (0.02p) | | (0.58p) |
Statement of Financial Position
| |
| Unaudited | Audited | |
| |
Note |
Six months ended 30 April | Year ended 31 October | |
| |
| 2024 | 2023 | 2023 |
| |
| £'000 | £'000 | £'000 |
| Non-Current Assets | | | | |
| Intangible assets - cryptocurrencies | 4 | 3,194 | - | 937 |
| Investments | | 2,113 | 4,898 | 1,953 |
| Total non-current assets |
| 5,307 | 4,898 | 2,890 |
| Current Assets | | | | |
| Trade and other receivables | | 7 | 4,486 | 47 |
| Cash and cash equivalents | | 209 | 140 | 68 |
| Total current assets |
| 216 | 4,626 | 115 |
| Total assets |
| 5,523 | 9,524 | 3,005 |
|
| | | | |
| Shareholders' equity | | | | |
| Share capital | | 1,603 | 1,211 | 1,211 |
| Share premium | | 9,892 | 9,817 | 9,817 |
| Share based payments reserve | | 923 | 923 | 923 |
| Fair value reserve- Cryptocurrencies | | 503 | 239 | 503 |
| Retained earnings | | (7,430) | (2,762) | (9,523) |
| Total shareholders' equity |
| 5,491 | 9,428 | 2,931 |
|
|
|
|
|
|
| Current Liabilities | | | | |
| Trade and other payables | | 32 | 96 | 74 |
| Total current liabilities |
| 32 | 96 | 74 |
| Total liabilities | | 32 | 96 | 74 |
| Total equity and liabilities | | 5,523 | 9,524 | 3,005 |
| | | | | |
Statement of Changes in Equity
|
|
Share capital |
Share Premium |
Share-based payments reserve | Fair value reserve- Crypto currencies |
Retained earnings |
Total |
| | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
| Unaudited | | | | | | |
| Six months ended 30 April 2024 | | | | | | |
| At 1 November 2023 | 1,211 | 9,817 | 923 | 503 | (9,523) | 2,931 |
| Profit for the period and total comprehensive profit | - | - | - | - | 2,093 | 2,093 |
| Shares issued during the period | 392 | 95 | - | - | - | 467 |
|
At 30 April 2024 | 1,603 | 9,982 | 923 | 503 | (7,430) | 5,491 |
|
| | | | | | |
| Unaudited | | | | | | |
| Six months ended 30 April 2023 | | | | | | |
| At 1 November 2022 | 1,211 | 9,817 | 923 | 239 | (2,552) | 9,638 |
| Loss for the period and total comprehensive loss | - | - | - | - | (210) | (210) |
| At 30 April 2023 | 1,211 | 9,817 | 923 | 239 | (2,762) | 9,428 |
| | | | | | | |
| Audited | | | | | | |
| Year ended 31 October 2023 | | | | | | |
| At 1 November 2022 | 1,211 | 9,817 | 923 | 239 | (2,552) | 9,638 |
| Loss for the year | - | - | - | - | (6,971) | (6,971) |
| Other comprehensive income | - | - | - | 264 | - | 264 |
| Total comprehensive loss for the year | - | - | - | 264 | (6,971) | (6,707) |
| At 31 October 2023 | 1,211 | 9,817 | 923 | 503 | (9,523) | 2,931 |
Statement of Cash Flows
| | |
Unaudited |
| Audited | |
| | | Six months ended 30 April |
| Year ended 31 October | |
| | | 2024 | 2023 |
| 2023 |
| | | £'000 | £'000 |
| £'000 |
| Operating activities | | | | | |
| Profit/(loss) for the year | | 2,093 | (210) | | (6,971) |
| Adjustments: | | | | | |
| Fair value loss/(gain) on investments | | 58 | (138) | | 2,437 |
| (Profit)/loss on disposal of investments | | (100) | - | | 4,060 |
| Fair value gain on cryptocurrencies | | (2,224) | - | | - |
| Finance income | | - | (103) | | (171) |
| Foreign exchange | | 32 | - | | 24 |
| Depreciation | | - | - | | 1 |
| | | | | | |
| Working capital adjustments: | | | | | |
| Decrease/(increase) in trade and other receivables | | 40 | (608) | | (33) |
| (Decrease)/increase in trade and other payables | | (41) | 6 | | (17) |
| Net cash used in operating activities |
| (142) | (1,053) |
| (718) |
| Investing activities | | | | | |
| Purchase of investments | | (300) | (2,350) | | (2,350) |
| Disposal of investments | | 116 | - | | - |
| Purchase of intangible assets - cryptocurrencies | | - | - | | (475) |
| Finance income | | - | 103 | | 171 |
| Net cash used in investing activities |
| (184) | (2,247) |
| (2,654) |
| | | | | | |
| Financing activities | | | | | |
| Proceeds from issue of shares | | 467 | - | | - |
| Net cash from financing activities |
| 467 | - |
| - |
| | | | | | |
| Net decrease in cash and cash equivalents | | 141 | (3,300) | | (3,372) |
| Cash and cash equivalents at start of financial period | | 68 | 3,440 | | 3,440 |
| Cash and cash equivalents at end of financial period |
| 209 | 140 |
| 68 |
Notes to the Interim Financial Statements for the six months ended 30 April 2024
1. Basis of preparation
The interim results of Supernova Digital Assets 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 October 2023. Supernova Digital Assets PLC expects to apply the same policies in its financial statements for the year ending 31 October 2024.
The financial information for the six months ended 30 April 2024 and for the six months ended 30 April 2023 have neither been audited nor reviewed by the Company's auditors. The comparative financial information for the year ended 31 October 2023 has been derived from the audited financial statements for that period.
2. Critical accounting estimates and judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any periods that will materially affect the accuracy of the financial statements. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, have been disclosed in the last financial statements for the year ended 31 October 2023.
There are no additional 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.
3. 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 April 2024, 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 October 2023 and six months ended 30 April 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.
4. Intangible Assets - cryptocurrencies
|
| Unaudited |
| Audited | |
|
| Six months ended 30 April |
| Year ended 31 October | |
|
| 2024 £'000 | 2023 £'000 |
| 2023 £'000 |
| At start of the period | 937 | - | | - |
| Additions | 73 | - | | 475 |
| Disposals | (8) | - | | - |
| Transfer | - | - | | 174 |
| Fair value movements on cryptocurrencies | 2,224 | - | | 264 |
| Exchange differences | (32) | - | | 24 |
| At end of the period | 3,194 | - |
| 937 |
For the six months ended 30 April 2024, gains in the value of crypto currencies were recognised in the Statement of Profit and Loss. There was no transfer to the Fair value reserve - Cryptocurrencies.
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