TIDMSTK
RNS Number : 1276V
StreaksAI PLC
30 November 2023
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014, as retained as part of
the law of England and Wales. Upon the publication of this
announcement via the Regulatory Information Service, this inside
information is now considered to be in the public domain.
Press Release
30 November 2023
StreaksAI PLC
("Streaks" or "the Company")
Interim results
StreaksAI PLC (LSE: STK), a UK-based generative Artificial
Intelligence (AI) platform, announces its unaudited financial
results for the six months ended 31 August 2023.
Operating and financial summary
-- Launched second flagship product, 'Streaks Social', to create realistic chatbots based on
high-profile influencers, allowing the influencers to scale and engage with their audience
using AI and large language models (LLMs), as part of wider expansion into the lucrative artificial
intelligence sector.
-- Changed name to StreaksAI, reflecting the Company's expanded focus on AI technologies across
both Streaks Gaming and Streaks Social.
-- Partnered with community e-commerce platform WeShop to redefine customer service and engagement,
enabling brands to build stronger connections with their audiences.
-- Strengthened Board of Directors with appointment of Philip Blows as Chief Executive Officer.
-- Signed advertising partnership with William Hill US to generate referral revenues, taking
signed commercial partnerships for Streaks Gaming to 14.
-- Loss before tax amounted to GBP0.93m reflecting investments in product development. (GBP3.35m
at the start of the year; H1).
-- Net cash amounted to GBP1.03m as at 31 August 2023 and GBP0.71m as at 27 November 2023.
Post-period highlights
-- Launched 'Streaks Idols', a mass-market product enabling the public to generate their own
AI characters with innate monetisation.
-- Recorded promising early sign-ups to Streaks Idols, with 9,135 users and over 60,000 messages
sent as at 2 November.
-- User numbers rose to 15,736 and over 127,000 messages sent as at 23 November.
-- Expanded AI offering with launch of 'Streaks Companion', a highly personalised AI chatbot
service allowing for sophisticated humanlike companionship.
-- Generated first revenues through sales of AI products.
Outlook
-- Current trading remains in line with management expectations as Streaks expands into the AI
sector. Positive momentum in sign-ups for Streaks Idols and Streaks Companion.
-- The AI industry, especially conversational AI, is at its growth stage and will continue to
develop over the next 12 months and Streaks is well positioned to take advantage of this.
-- Costs expected to fall as one-off development expenses of AI products now completed.
-- Streaks to explore how it can leverage Streaks Gaming's proprietary technology to generate
further revenue.
-- Streaks is focused on expanding its business model through building on current products and
enhancing the current platform, strengthening the pipeline of partnerships and building consumer
trust.
Commenting on the results, Philip Blows, Chief Executive of
Streaks said: "The AI sector has grown rapidly in 2023 and Streaks
has moved quickly to meet consumer demand. With significant
appetite for chatbot products from corporate customers looking to
improve their customer service, as well as consumers looking for
entertainment or companionship, there is a great opportunity for
Streaks to take advantage of AI's upward growth trajectory. I'm
thrilled with the progress we've made in developing our AI products
and we're already seeing consumer interest grow as we have now
entered our revenue-generating phase.
"Streaks Gaming remains an important part of our business, and
we were pleased to partner with William Hill to bring our total
number of partners to 14. We're evaluating where best we can
leverage our proprietary conversational gaming technologies to grow
the Company and complement the burgeoning conversational AI side of
our business."
For further information please contact:
StreaksAI PLC
Philip Blows via Tancredi
Chief Executive +44 207 887 7633
-------------------
Tennyson Securities
-------------------
Corporate Broker
Peter Krens +44 207 186 9030
-------------------
First Sentinel
-------------------
Corporate Broker
Brian Stockbridge +44 203 989 2200
-------------------
Tancredi Intelligent Communication
-------------------
Media Relations
Helen Humphrey
Charlie Hobbs +44 744 922 6720
Neha Dhakal +44 7897 557112
stai@tancredigroup.com +44 7915 035294
-------------------
About Streaks:
StreaksAI PLC is a provider of AI based conversational
technologies. The Company offers two core products in the gaming
and conversational AI space.
For more information on the Conversational Gaming AI product, please visit www.playstreaks.com .
For more information on the Conversational AI product, please visit www.streaks.ai .
Forward-looking statements
This document contains forward-looking statements which are
subject to known and unknown risks and uncertainties because they
relate to future events, many of which are beyond the Company's
control. These forward-looking statements include, without
limitation, statements in relation to the Company's financial
outlook and future performance. No assurance can be given that
future results will be achieved; actual events or results may
differ materially as a result of risks and uncertainties facing the
Company.
You are cautioned not to rely on these forward-looking
statements, which speak only as of the date of this announcement.
The Company undertakes no obligation to update or revise any
forward-looking statement to reflect any change in its expectations
or any change in events, conditions or circumstances. Nothing in
this document is or should be relied upon as a warranty, promise or
representation, express or implied, as to the future performance of
the Company or the Group or their businesses.
INTERIM MANAGEMENT REPORT
Overview
The Company is in its first year, having listed in January 2023,
and has quickly gained momentum, driven by the Company's entry into
the growing conversational AI sector. Consumer interest in
artificial intelligence grew rapidly in early 2023, with OpenAI's
ChatGPT becoming the fastest-growing consumer application in
history (source: Reuters, 2023). The Board identified an
opportunity to leverage the Company's AI expertise from its work in
conversational gaming to gain market share in the still nascent
conversational AI space. Moreover, the Company has been able to
capitalise on its intellectual property realised through its
existing Streaks Gaming business to develop sophisticated new
products in a short development timeframe. This additional pillar
and revenue stream for the business is reflected in the Company's
decision to change its name to StreaksAI, which took place on 10
July.
The loss before tax was GBP925,000 for the period ended 31
August 2023, attributable to several one-off investments into
product development to greatly expand the Company's AI offering,
with the intent of positioning Streaks plc as a leading company in
the conversational AI industry.
Operating Review
Streaks expanded its AI offering first through the launch of
Streaks Social, an influencer-focused product that utilises Natural
Language Processing (NLP) text generators like GPT-4 to create a
realistic AI facsimile of a real-world influencer. Influencer
marketing is a $21.1 billion industry (source: Statista, 2023)
which is reliant on influencers' connection with their fans.
Streaks Social allows fans to have personalised conversations with
influencers, which the Company has monetised through sale of
Streaks credits.
Streaks further expanded its conversational AI offering with the
launch of Streaks Idols, a social product and AI character
generator which offers a range of customisable AI-powered chatbots
capable of sophisticated humanlike interaction. Streaks Idols has
innate monetisation, allowing users to generate revenue through
interactions with their chatbots. Alongside Streaks Idols, Streaks
launched Streaks Companion, providing private chatbots designed for
long-term conversations, offering companionship, mentorship and
digital assistance services. Streaks Companion launched with a
dedicated portal on the Company's state-of-the-art website.
Streaks' conversational AI services have generated positive
momentum, having seen it sign up over 15,700 registered users in
its first few months of operation. Moreover, it surpassed 127,000
in aggregate messages sent across the platform userbase.
The Streaks platform is still developing further despite
competitive market conditions. With Streaks' development of digital
tie-ins including calendar integration, which are expected to
release in Q1 2024, Streaks is well positioned to take advantage of
the new opportunities ahead and create value for shareholders.
Alongside consumer-facing conversational AI, the Company is
continuing to identify growth and partnership opportunities with
commercial partners. In August 2023, Streaks partnered with WeShop,
a community owned social commerce platform that combines shopping
with social media, to deliver a human-like intuitive conversational
interface for shoppers seeking in-platform assistance including
addressing queries, resolving issues, or receiving product
information.
Despite the Company's move into the conversational AI sector,
conversational gaming remains an important part of Streaks'
offering. In March, the Company signed an advertising partnership
with William Hill US to generate referral revenues, taking the
total number of signed commercial partnerships for Streaks Gaming
to 14.
Beyond Streaks' successful partnerships with WeShop and William
Hill in the e-commerce and betting sectors, the Company is
exploring expanding into new areas such as HR and education where
it can leverage its AI technologies and plans to add value by
integrating the product for automation and assistance in these
sectors. Streaks' management has seen positive momentum in user
growth and messages sent on its conversational AI products, and the
Company plans to roll out the Idols service on further platforms
including WhatsApp and SMS text messaging.
Outlook
The Company considers that due to the growing size of the AI
market, there is demand for conversational AI platforms which are
tailored to the individual and useful in personal assistance. The
Board is pleased with the positive momentum of the Company's social
AI products, which have seen positive audience growth following
launch and have generated Streaks' first revenues. The Board
believes the AI sector will continue to grow and mature, evidenced
by the increased presence of large institutional investors in the
space. Streaks is in an excellent position to take advantage of the
sector's growth.
The Directors are of the opinion that the Company has adequate
working capital to meet its obligations over the next 12 months.
The Company is focused on reducing administrative costs in relation
to Streaks and anticipate and forecast that the Streaks Idols and
Streaks Companion will be strongly cash generative, and the costs
related to this revenue will be minimal.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTH PERIODING 31 AUGUST 2023
Unaudited Audited
Period ending Year ending
31 August 28 February
2023 2023
Note GBP'000 GBP'000
------------------------------------------ ----- ------------- ------------
Continuing Operations
Administrative expenses (925) (3,351)
Operating loss (925) (3,351)
Finance Income - -
Loss before taxation (925) (3,351)
------------------------------------------------- ------------- ------------
Taxation on loss of ordinary - -
activities
------------------------------------------ ----- ------------- ------------
Loss for the year from continuing
operations (925) (3,351)
Other comprehensive income - -
------------------------------------------ ----- ------------- ------------
Total comprehensive loss for
the year attributable to shareholders
from continuing operations (925) (3,351)
------------------------------------------------- ------------- ------------
Basic & dilutive earnings per
share - pence (0.24) (1.24)
------------------------------------------------- ------------- ------------
STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 2023
Unaudited Audited
As At 31 AUG As At 28 FEB
2023 2022
Note GBP'000 GBP'000
------------------------------- -------- ---------------------------- -----------------------------
NON-CURRENT ASSETS
Intangible assets 6 63 63
------------------------------- -------- ---------------------------- -----------------------------
TOTAL NON-CURRENT ASSETS 63 63
------------------------------- -------- ---------------------------- -----------------------------
CURRENT ASSETS
Cash and cash equivalents 1,032 2,070
Trade and other receivables 79 196
------------------------------- -------- ---------------------------- -----------------------------
TOTAL CURRENT ASSETS 1,112 2,266
------------------------------- -------- ---------------------------- -----------------------------
TOTAL ASSETS 1,175 2,329
------------------------------- -------- ---------------------------- -----------------------------
EQUITY
Share capital 4 379 378
Share Premium 4 4,880 4,880
Share Based Payment Reserve 5 704 704
Retained Earnings (4,876) (3,951)
------------------------------- -------- ---------------------------- -----------------------------
TOTAL EQUITY 1,086 2,011
------------------------------- -------- ---------------------------- -----------------------------
CURRENT LIABILITIES
Trade and other payables 89 318
------------------------------- -------- ---------------------------- -----------------------------
TOTAL CURRENT LIABILITIES 89 318
------------------------------- -------- ---------------------------- -----------------------------
TOTAL LIABILITIES 89 318
------------------------------- -------- ---------------------------- -----------------------------
TOTAL EQUITY AND LIABILITIES 1,175 2,329
=============================== ======== ============================ =============================
The condensed interim financial statements were approved and
authorised by the Board of Directors on 24 November 2023 and were
signed on its behalf by:
Nicholas Lyth
Director
STATEMENT OF CHANGES IN EQUITY
FOR THE 6 MONTH PERIODING 31 AUGUST 2023
Share Capital Share Premium Share Retained Total
GBP'000 GBP'000 based payment Earnings Equity
reserve GBP'000 GBP'000
GBP'000
----------------------------- ------------------ ----------------- ----------------- ------------- -------------
Loss for period - - - (3,351) (3,351)
Other comprehensive income - - - - -
----------------------------- ------------------ ----------------- ----------------- ------------- -------------
Total comprehensive income
for year - - - (3,351) (3,351)
-
Transactions with owners -
in own capacity
----------------------------- ------------------ ----------------- ----------------- ------------- -------------
Ordinary shares issued 224 4,432 - - 4,656
Advisor warrants issued - - - - -
----------------------------- ------------------ ----------------- ----------------- ------------- -------------
Transactions with owners
in own capacity - - 679 - 679
----------------------------- ------------------ ----------------- ----------------- ------------- -------------
Balance at 28 February
2023 378 4,880 704 (3,951) 2,011
============================= ================== ================= ================= ============= =============
Loss for period - - - (925) (925)
Other comprehensive income 0 (0) - - -
----------------------------- ------------------ ----------------- ----------------- ------------- -------------
Total comprehensive income
for year - - - (925) (925)
Transactions with owners
in own capacity
----------------------------- ------------------ ----------------- ----------------- ------------- -------------
Ordinary shares issued - - - - -
Advisor warrants issued - - - - -
Share issue costs - - - - -
----------------------------- ------------------ ----------------- ----------------- ------------- -------------
Transactions with owners - - - - -
in own capacity
----------------------------- ------------------ ----------------- ----------------- ------------- -------------
Balance at 31 August
2023 379 4,880 704 (4,876) 1,086
============================= ================== ================= ================= ============= =============
STATEMENT OF CASHFLOWS
FOR THE 6 MONTH PERIODING 31 AUGUST 2023
Unaudited Audited
6 month 12 month
period period ended
ended 31 28 Feb
Aug 2023
2023
Note GBP '000 GBP '000
------------------------------------------------------------------------------------ ------------------------ ----------------
Cash flow from operating activities
Cash used by operations (1,037) (2,631)
Net cash outflow from operating activities (1,037) (2,631)
------------------------------------------------------------------------------------ ------------------------ ----------------
Cash flows from investing activities
Purchase of property, plant and equipment - -
Purchase of intangible assets - -
------------------------------------------------------------------------------------ ------------------------ ----------------
Net cash flow from investing activities - -
------------------------------------------------------------------------------------ ------------------------ ----------------
Cash flows from financing activities
Share issue, net of issue costs - 4,656
Net cash flow from financing activities - 4,656
------------------------------------------------------------------------------------ ------------------------ ----------------
Net (decrease) in cash and cash equivalents (1,037) 2,025
Cash and cash equivalents at beginning
of the period 2,070 45
Foreign exchange impact on cash - -
Cash and cash equivalents at end of
the period 1,032 2,070
------------------------------------------------------------------------------------ ------------------------ ----------------
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIODING 31 AUGUST 2023
1 General information
StreaksAI Plc is a public limited company incorporated in
England and Wales and domiciled in the United Kingdom. The
registered office and principal place of business is 16 Great Queen
Street, London WC2B 5DG.
The Company was incorporated on 19 March 2021 and started
trading on the LSE on the 5th January 2023.
The Company's principal activities and nature of its operations
are disclosed in the Directors' Report.
2 Accounting policies
IAS 8 requires that management shall use its judgement in
developing and applying accounting policies that result in
information which is relevant to the economic decision-making needs
of users, that are reliable, free from bias, prudent, complete and
represent faithfully the financial position, financial performance
and cash flows of the entity.
2.1 Basis of preparation
The condensed interim financial statements ("interim financial
statements") have been prepared in accordance with International
Accounting Standard 34 "Interim Financial Reporting" (IAS 34) as
adopted by the European Union (EU). The interim financial
statements have been prepared on the historical cost basis, except
for assets and liabilities measured at fair value through profit
and loss, and are presented in pounds sterling (GBP). All amounts
have been rounded to the nearest pound, unless otherwise
stated.
The interim financial statements have not been audited. The
interim financial statements do not constitute statutory accounts
within the meaning of section 434 of the Companies Act 2006. The
figures have been prepared using applicable accounting policies and
practices consistent with those adopted in the audited annual
financial statements ("annual financial statements") for the year
ended 30 November 2021.
The interim financial statements are for the six months to 31
August 2023, being six months from the financial year end for the
Company being 28 February 2023. The interim financial statements do
not include all the information and disclosures required in the
annual financial statements and should be read in conjunction with
the Company's annual financial statements for the period ended 28
February 2023. The Company has not disclosed comparative data for
the period from 28(th) February to 31 Aug 2022 as required for
disclosure by accounting standards due to the company having
started trading on the LSE on the 5th January 2023 and no such data
exists. The company has disclosed the audited figures from the
annual financial statements.
The functional currency for the Company is determined as the
currency of the primary economic environment in which it operates.
Both the function and presentational currency of the Company Pounds
Sterling (GBP).
The business is not considered to be seasonal in nature.
New standards, amendments and interpretations adopted by the
Company
During the current period the Company adopted all the new and
revised standards, amendments and interpretations that are relevant
to its operations and are effective for accounting periods
beginning on 1 December 2021. This adoption did not have a material
effect on the accounting policies of the Company.
New standards, amendments and interpretations not yet adopted by
the Company
The standards and interpretations that are relevant to the
Company, issued, but not yet effective, up to the date of these
interim financial statements have been evaluated by the directors
and they do not consider that there will be a material impact of
transition on the financial statements.
2.2 Going concern
The Company has not yet commenced trade from which it will
generate revenue. However, having successfully had its shares
listed on the London Stock Exchange on 5 January 2023, the
Directors are of the opinion that the Company has adequate working
capital to meet its obligations over the next 12 months. The
Directors have focused on reducing administrative costs in relation
to StreaksAI and anticipate and forecast that the Streaks Social
business will be strongly cash generative, and the costs related to
this revenue will be minimal. As a result, the Directors have
adopted the going concern basis of accounting in the preparation of
the interim financial statements.
2.3 Risks and uncertainties
The principal risks and uncertainties relevant to the Company
have not changed materially since the release of the annual
financial statements for the period ending 28 February 2023. These
risks can be referenced in the strategic report contained within
the annual financial statements.
3 Critical accounting estimates and judgements
In the application of the Company's accounting policies, the
directors are required to make judgements, estimates and
assumptions about the carrying amount of assets and liabilities
that are not readily apparent from other sources. The estimates and
associated assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results may
differ from these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised, if the revision
affects only that period, or in the period of the revision and
future periods if the revision affects both current and future
periods. The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are
significant to the financial statements, are disclosed below:
Share Based Payments
The Company measures the cost of equity-settled transactions by
reference to the fair value of the equity instruments at the date
at which they are granted. The fair value is determined by using
the Black-Scholes model taking into account the terms and
conditions upon which the instruments were granted. The accounting
estimates and assumptions relating to equity-settled share-based
payments would have no impact on the carrying amounts of assets and
liabilities within the next annual reporting period but may impact
profit or loss and equity. There have been no dilutive instruments
issued in the period and the value remains equal to that in the
annual financial statements as at the last reporting period.
4 Share capital and share premium
Ordinary Share Share
Shares Capital Premium Total
# GBP GBP GBP
---------------------- ----------- -------- --------- ---------
At 28 February 2023 378,312,535 378,313 4,880,411 5,258,724
---------------------- ----------- -------- --------- ---------
At 31 August 2023 378,732,535 378,733 4,879,991 5,258,724
---------------------- ----------- -------- --------- ---------
5 Share based payments and Other reserves
As at 31 As at 28
Aug 2023 Feb 2023
GBP GBP
Share based payments Reserve 703,816 24,800
Warrants issued in the period - 679,016
Warrants cancelled in the period - -
--------------------------------- -------------------------------------------------------- ---------
Total 703,816 703,816
6 Intangible assets
Development costs Total
GBP'000 GBP'000
Cost as at 28 Feb 23 63 63
Additions - -
Cost as at 31 Aug 23 63 63
-------------------------------- ------------------ ---------
Amortisation and impairment as - -
at 28 Feb 23
Charge for the period - -
Amortisation and impairment as - -
at 31 Aug 23
-------------------------------- ------------------ ---------
Carrying amount as at Feb 23 63 63
Carrying amount as at Aug 23 63 63
-------------------------------- ------------------ ---------
Intangible assets includes GBP52,000 in relation to the
acquisition of the business and
intangible assets on 15 November 2021 of StreaksAI from Flatiron
Labs Inc
The following warrants over ordinary shares have been granted by
the Company and are outstanding at 31 August 2023:
Number of Warrants Exercise Expiry date
Price
--------------------------- ------------------ -------- -----------
On incorporation - - -
Issued on 18 October 2021 26,700,000 GBP0.01 17 Oct 2024
Issued on 5 January 2023 45,499,000 GBP0.06 4 Jan 2026
Issued on 5 January 2023 4,501,000 GBP0.06 4 Jan 2026
Issued on 5 January 2023 6,000,000 GBP0.03 4 Jan 2026
At 31 Aug 2023 82,700,000
------------------ --------
There were no dilutive instruments issued in the 6 month period
ending 31 Aug 2023.
The fair value of the share warrant rights granted are valued
using the Black-Scholes option pricing model. The option pricing
model assumptions can be referenced in the annual financial
statements.
7 Financial commitments & contingent liabilities
There were no capital commitments or contingent liabilities
pertaining to the Company at 31 Aug 2023.
8 Related party transactions
The company made payments to the following companies in relation
to directors' fees:
Period 1 Mar to Year ended
31 Aug 2023 28 Feb 2023
GBP GBP
Carraway Capital Corp - Mr Mark Rutledge 30,000 32,500
Dark Peak Services Ltd - Mr Nicholas
Lyth 18,000 60,000
Marallo Holdings Inc - Mr Michael
Edwards 48,000 16,000
Infinity Growth Digital Inc. - Mr
David Raphael 45,000 15,000
Gordon Silvera 30,000 7,500
171,000 131,000
9 Events subsequent to period end
There were no material events subsequent to period end that
require disclosure.
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IR PPGQAGUPWGMB
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