Supernova Digital - Interim results

Announcement provided by

Supernova Digital Assets Plc · SOL

31/07/2024 07:00

RNS Number : 4776Y

Supernova Digital Assets PLC

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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