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:
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Supernova Digital Assets
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Mike Edwards
Executive Chairman
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+44
7858 888 007
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First Sentinel
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Corporate Adviser
Brian Stockbridge
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+44
7876 888 011
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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
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Unaudited
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Audited
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Note
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Six months ended 30
April
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Year
ended 31 October
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2024
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2023
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2023
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£'000
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£'000
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£'000
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Revenue
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-
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-
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-
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Fair valuation movement in
investments
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(58)
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138
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(2,437)
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Fair valuation movement in
intangible assets - cryptocurrencies
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2,224
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-
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-
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2,166
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138
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(2,437)
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Other operating income
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25
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93
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128
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Profit/(loss) on disposal of
investments
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100
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-
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(3,799)
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Administrative expenses
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(198)
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(544)
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(1,034)
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Operating Profit/(loss)
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2,093
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(313)
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(7,142)
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Finance income
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-
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103
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171
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Profit/(loss) before taxation
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2,093
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(210)
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(6,971)
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Taxation
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-
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-
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-
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Profit/(loss) after
taxation
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2,093
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(210)
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(6,971)
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Other comprehensive income
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Items that may be reclassified subsequently to profit or
loss
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Gain on cryptocurrencies
held
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4
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-
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-
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264
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Total comprehensive profit/(loss) for the
period
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2,093
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(210)
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(6,707)
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Earnings/(loss) per ordinary share:
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Basic earnings/(loss) per
share
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3
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0.16p
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(0.02p)
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(0.58p)
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Diluted earnings/(loss) per
share
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3
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0.16p
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(0.02p)
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(0.58p)
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Statement of Financial
Position
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Unaudited
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Audited
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Note
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Six months ended 30
April
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Year ended 31
October
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2024
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2023
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2023
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£'000
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£'000
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£'000
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Non-Current Assets
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Intangible assets -
cryptocurrencies
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4
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3,194
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-
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937
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Investments
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2,113
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4,898
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1,953
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Total non-current assets
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5,307
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4,898
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2,890
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Current Assets
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Trade and other
receivables
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7
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4,486
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47
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Cash and cash equivalents
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209
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140
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68
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Total current assets
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216
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4,626
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115
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Total assets
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5,523
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9,524
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3,005
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Shareholders' equity
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Share capital
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1,603
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1,211
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1,211
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Share premium
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9,892
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9,817
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9,817
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Share based payments
reserve
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923
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923
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923
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Fair value reserve-
Cryptocurrencies
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503
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239
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503
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Retained earnings
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(7,430)
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(2,762)
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(9,523)
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Total shareholders' equity
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5,491
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9,428
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2,931
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Current Liabilities
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Trade and other
payables
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32
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96
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74
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Total current liabilities
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32
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96
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74
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Total liabilities
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32
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96
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74
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Total equity and liabilities
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5,523
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9,524
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3,005
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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
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Unaudited
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Audited
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Six
months ended 30 April
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Year ended 31
October
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2024
£'000
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2023
£'000
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2023
£'000
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At start of the period
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937
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-
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-
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Additions
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73
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-
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475
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Disposals
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(8)
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-
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-
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Transfer
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-
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-
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174
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Fair value movements on
cryptocurrencies
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2,224
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-
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264
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Exchange differences
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(32)
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-
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24
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At end of the period
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3,194
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-
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937
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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.