Interim / Quarterly Report • Oct 4, 2023
Interim / Quarterly Report
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UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Period from 1 January 2023 to 30 June 2023
| Board of Directors and other officers | 1 |
|---|---|
| Management Report | 2 & 3 |
| Consolidated statement of profit or loss and other comprehensive income | 4 |
| Consolidated statement of financial position | 5 |
| Consolidated statement of changes in equity | 6 |
| Consolidated cash flow statement | 7 |
| Notes to the consolidated financial statements | 8 - 17 |
| Board of Directors: | Natalia Kyriacou |
|---|---|
| Cleo Koushos-Cros | |
| Martha Lambrianou | |
| Company Secretary: | Speedy Secretarial Solutions Limited |
| Registered office: | Athalassas 62 Mezzanine floor 2012 Strovolos Nicosia, Cyprus |
| Bankers: | Alpha Bank Cyprus Ltd |
| Registration number: | ΗΕ414929 |
The Board of Directors presents its report and unaudited consolidated financial statements of the Company and its subsidiaries (together with the Company, the ''Group'') for the period from 1 January 2023 to 30 June 2023.
The principal activities of the Group, which are unchanged from last year, are the holding of investments and the provision of financing.
The Group's development to date, financial results and position as presented in the consolidated financial statements are not considered satisfactory and the Board of Directors is making an effort to reduce the Group's losses.
On 27 April 2022 the Cyprus Stock Exchange (the "CSE") approved the application of the Company for initial listing of 118.162 non-secured and non-guaranteed bonds (and subsequently up to 120.000) of nominal value €1.000 each and a listing price of €850, as well as 24.883 ordinary shares of nominal value and listing price of €1,03 each on the Emerging Companies Market (the "ECM").
The Company has listed its shares and convertible bonds on the Emerging Capital Markets of the Cyprus Stock Exchange ('CSE'). The CSE has established a Corporate Governance Code ('The Code'). The Company does not apply the Code, taking into consideration the small size of the Group, the fact that the Group does not employ a high number of employees and that its principal activities are the holding of investments and provision of financing. These advocate for the non-adoption of the Code, as the relative cost increase would not be justified under the circumstances.
The Group does not maintain any branches.
There were no changes in the share capital of the Company during the period under review.
The members of the Group's Board of Directors as at 30 June 2023 and at the date of this report are presented on page 1. All of them were members of the Board of Directors throughout the period from 1 January 2023 to 30 June 2023.
In accordance with the Company's Articles of Association all Directors presently members of the Board continue in office.
There were no significant changes in the assignment of responsibilities and remuneration of the Board of Directors.
On 30 August 2023 the Company resolved that the authorized share capital of the Company be increased from Euro 25.629,49 divided into 24.883 ordinary shares of EUR 1,03 each to Euro 112.295.629,49 divided into 109.024.883 ordinary shares of nominal value of EUR 1,03 each by the creation of 109.000.000 ordinary shares of nominal value of EUR 1,03 each which will rank pari passu in all respects, with the existing ordinary shares of the Company.
On 2 October 2023 the Company announces that during the conversion period (15-30 September 2023), it has received one Voluntary Conversion Application for the conversion of 118,162 Bonds of nominal value of €1,000 each into ordinary shares of nominal value of €1.03 each of the Company at the conversion price of €0.927 per share. As a result, 108,347,033 new ordinary shares of the Company will be issued. The Company will take all necessary measures to list the new ordinary shares in the Cyprus Stock Exchange.
There were no material events after the reporting period, which have a bearing on the understanding of the consolidated financial statements.
Disclosed in note 25 of the consolidated financial statements.
By order of the Board of Directors,
Natalia Kyriacou Director
Nicosia, 3 October 2023
01/01/2023- 30/06/2023 01/01/2022- 30/06/2022 Unaudited Unaudited Note US\$ US\$ Loan interest income 16 3,242,051 1,217,217 Net loss on trading in financial instruments (23,564) - Net fair value changes 18 255,396 (5,995,869) Administration expenses 8 (926,374) (743,519) Other expenses 9 (2,173) - Operating profit/(loss) 2,545,336 (5,522,171) Net finance (costs)/income 11 (4,149,388) 3,840,437 Loss before tax (1,604,052) (1,681,734) Tax 12 - - Net loss for the period (1,604,052) (1,681,734) Other comprehensive income - - Total comprehensive loss for the period (1,604,052) (1,681,734) Loss per share attributable to equity holders of the parent 13 (64.46) (67.59)
30/06/2023 31/12/2022 Unaudited Audited Note US\$ US\$ ASSETS Non-current assets Right-of-use assets 14 16,124 23,742 Non-current loans receivable 16 2,564,561 186,852,866 2,580,685 186,876,608 Current assets Other receivables 17 53,429 53,429 Loans receivable 16 191,954,496 - Financial assets at fair value through profit or loss 18 522,769 2,536,579 Cash and cash equivalents 20 1,899,427 4,245,387 194,430,121 6,835,395 Total assets 197,010,806 193,712,003 EQUITY AND LIABILITIES Equity Share capital 21 30,108 30,108 Accumulated losses (7,489,844) (5,885,792) Total equity (7,459,736) (5,855,684) Non-current liabilities Borrowings 22 - 187,184,596 Lease liabilities 23 - 6,003 Other payables 24 12,017,319 12,290,611 12,017,319 199,481,210 Current liabilities Other payables 24 46,194 68,027 Borrowings 22 192,390,355 - Lease liabilities 23 16,674 18,450 192,453,223 86,477 Total liabilities 204,470,542 199,567,687 Total equity and liabilities 197,010,806 193,712,003
On 3 October 2023 the Board of Directors of Altrecom Plc authorised these consolidated financial statements for issue.
....................................
Natalia Kyriacou Director
.................................... Cleo Koushos-Cros Director
| Share capital US\$ |
Accumulated losses US\$ |
Total US\$ |
|
|---|---|---|---|
| Balance at 1 January 2022 | 30,108 | (2,383,791) | (2,353,683) |
| Comprehensive income Net loss for the period |
- | (1,681,734) | (1,681,734) |
| Total comprehensive income for the period | - | (1,681,734) | (1,681,734) |
| Balance at 30 June 2022 | 30,108 | (4,065,525) | (4,035,417) |
| Balance at 1 January 2023 | 30,108 | (5,885,792) | (5,855,684) |
| Comprehensive income | |||
| Net loss for the period Total comprehensive income for the period |
- - |
(1,604,052) (1,604,052) |
(1,604,052) (1,604,052) |
| Balance at 30 June 2023 | 30,108 | (7,489,844) | (7,459,736) |
| Note | 01/01/2023- 30/06/2023 Unaudited US\$ |
01/01/2022- 30/06/2022 Unaudited US\$ |
|
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES Loss before tax |
(1,604,052) | (1,681,734) | |
| Adjustments for: | |||
| Depreciation of right-of-use assets | 14 | 8,063 | 10,299 |
| Exchange difference arising on the translation of non-current assets in | |||
| foreign currencies Unrealised exchange profit |
- (1,813,328) |
(170,187) (6,723,218) |
|
| Fair value (gains)/losses on financial assets at fair value through profit or | |||
| loss | 18 | (255,396) | 5,995,869 |
| Interest income | 15 | (3,262,367) | (1,217,217) |
| Interest expense | 22,23 | 5,218,348 | 3,704,353 |
| (1,708,732) | (81,835) | ||
| Changes in working capital: | |||
| Increase in other receivables | - | (17,594,713) | |
| Decrease in financial assets at fair value through profit or loss | 2,013,809 | 23,982,696 | |
| Decrease in other payables Net change in loan receivable and borrowings |
(270,308) - |
(845,256) (2,486,655) |
|
| Cash generated from operations | 34,769 | 2,974,237 | |
| Interest received | 11 | (169,897) | 200,120 |
| Net cash (used in)/generated from operating activities | (135,128) | 3,174,357 | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Loans granted | 16 | - | (656,491) |
| Payment for purchase of other investments | 19 | - | (11,107,840) |
| Net cash used in investing activities | - | (11,764,331) | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Repayments of borrowings | (1,509,614) | - | |
| Payments of leases liabilities | 23 | (8,017) | (10,805) |
| Proceeds from borrowings | 22 | 500,000 | - |
| Proceeds from leases liabilities | 284 | - | |
| Interest paid | 22,23 | (1,193,485) | (481) |
| Net cash used in financing activities | (2,210,832) | (11,286) | |
| Net decrease in cash and cash equivalents | (2,345,960) | (8,601,260) | |
| Cash and cash equivalents at beginning of the period | 4,245,387 | 19,290,558 | |
| Cash and cash equivalents at end of the period | 20 | 1,899,427 | 10,689,298 |
Altrecom Plc (the ''Company'') was incorporated in Cyprus on 7 November 2020 as a private limited liability company under the provisions of the Cyprus Companies Law, Cap. 113. Its registered office is at Athalassas 62, Mezzanine, Strovolos 2012, Nicosia.
The consolidated financial statements for the six months ended on 30 June 2022 and 2023 respectively, have not been audited by the external auditors of the Company.
These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU) and the requirements of the Cyprus Companies Law, Cap. 113. These consolidated financial statements have been prepared under the historical cost convention as modified by the revaluation of, and financial assets and financial liabilities at fair value through profit or loss.
The consolidated financial statements are presented in United States Dollars (US\$) which is the functional currency of the Group.
Please refer to Note 4: "Adoption of new or revised standards and interpretations" and to Note 5: "Significant accounting policies" of the Audited Consolidated Financial Statements for the Year ended 31 December 2022.
At the date of approval of these consolidated financial statements, standards and interpretations were issued by the International Accounting Standards Board which were not yet effective. Some of them were adopted by the European Union and others not yet. The Board of Directors expects that the adoption of these accounting standards in future periods will not have a material effect on the consolidated financial statements of the Group.
Please refer to Note 7: "Financial Risk management" of the Audited Consolidated Financial Statements for the Year ended 31 December 2022.
Please refer to Note 8: "Critical Accounting Estimates, Judgments and Assumptions" of the Audited Consolidated Financial Statements for the Year ended 31 December 2022.
| 01/01/2023- 30/06/2023 Unaudited US\$ |
01/01/2022- 30/06/2022 Unaudited US\$ |
|
|---|---|---|
| Staff costs Sundry expenses |
361,632 61,939 |
440,089 15 |
| Telephone and postage Computer supplies and maintenance |
1,418 - |
2,404 98 |
| Auditors' remuneration Other professional fees Other administration expenses Depreciation of right-of-use assets |
3,210 452,340 37,772 8,063 |
4,623 228,484 60,099 7,707 |
| 926,374 | 743,519 | |
| 9. Other expenses | ||
| 01/01/2023- 30/06/2023 US\$ |
01/01/2022- 30/06/2022 US\$ |
|
| Loss from disposal and revaluation of financial assets | 2,173 2,173 |
- - |
| 10. Staff costs | ||
| Salaries | 01/01/2023- 30/06/2023 Unaudited US\$ 361,632 |
01/01/2022- 30/06/2022 Unaudited US\$ 440,089 |
| 361,632 | 440,089 | |
| Average number of employees (including Directors in their executive and non executive capacity) |
8 | 9 |
| 11. Finance income/(costs) | ||
| 01/01/2023- 30/06/2023 Unaudited US\$ |
01/01/2022- 30/06/2022 Unaudited US\$ |
|
| Interest income Exchange profit |
20,316 (103,805) |
- 9,801,400 |
| Finance income | (83,489) | 9,801,400 |
| Exchange losses Interest expense Sundry finance expenses |
1,204,420 (5,218,348) (51,971) |
(2,012,127) (3,704,353) (244,483) |
| Finance costs | (4,065,899) | (5,960,963) |
| Net finance (costs)/income | (4,149,388) | 3,840,437 |
The tax on the Group's results before tax differs from the theoretical amount that would arise using the applicable tax rates as follows:
| 01/01/2023- | 01/01/2022- | |
|---|---|---|
| 30/06/2023 | 30/06/2022 | |
| Unaudited | Unaudited | |
| US\$ | US\$ | |
| Loss before tax | (1,604,052) | (1,681,734) |
| Tax calculated at the applicable tax rates | (200,507) | (210,217) |
| Tax effect of expenses not deductible for tax purposes | (101,110) | 1,056,974 |
| Tax effect of allowances and income not subject to tax | (21,488) | (1,225,175) |
| Tax effect of tax loss for the period | 323,105 | 378,418 |
| Tax charge | - | - |
The corporation tax rate is 12,5%.
Under certain conditions interest income may be subject to defence contribution at the rate of 30%. In such cases this interest will be exempt from corporation tax. In certain cases, dividends received from abroad may be subject to defence contribution at the rate of 17%.
Gains on disposal of qualifying titles (including shares, bonds, debentures, rights thereon etc) are exempt from Cyprus income tax.
| 01/01/2023- 30/06/2023 Unaudited |
01/01/2021- 30/06/2021 Unaudited |
|
|---|---|---|
| Loss attributable to shareholders (US\$) | (1,604,052) | (1,681,734) |
| Weighted average number of ordinary shares in issue during the period | 24,883 | 24,883 |
| Loss per share attributable to equity holders of the parent | (64.46) | (67.59) |
Diluted EPS is the same as basic EPS.
| Offices US\$ |
|
|---|---|
| Cost | |
| Balance at 1 January 2022 Charge for the year |
50,423 (26,681) |
| Balance at 1 January 2023 | 23,742 |
| Charge for the period | (8,063) |
| Balance at 30 June 2023 | 16,124 |
| Net book amount | |
| Balance at 30 June 2023 | 16,124 |
| Balance at 1 January 2023 | 23,742 |
On 1st of May 2021 and on 1st of July 2021, the Company entered into a one year lease agreement, respectively, for its offices, with renewal options. Rental contracts are typically made for fixed period of three years and may have extensions or automatic renewal options. The first agreement was terminated during the year. The managements intention is to renew the later lease agreement for three years. The lease agreement do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as security for borrowing purposes.
The details of the subsidiaries are as follows:
| Name | Country of | Principal activities | 30/06/2023 | 31/12/2022 | ||
|---|---|---|---|---|---|---|
| incorporation | Holding | Holding | 30/06/2023 | 31/12/2022 | ||
| % | % | US\$ | US\$ | |||
| Earth S.R.O. | Slovakia | Trading Services | 100 | 100 | 120,170 | 120,170 |
| Donimaro | Cyprus | Holding of | 100 | 100 | 446,991 | 123 |
| Limited | investments and | |||||
| provision of | ||||||
| financing |
On 3 April 2023 Altrecom PLC has made a capital contribution to Donimaro Limited of €150,000 equivalent to \$163,050.
On 19 April 2023 Altrecom PLC has made a capital contribution to Donimaro Limited of €100,000 equivalent to \$109,330.
On 26 April 2023 Altrecom PLC has made a capital contribution to Donimaro Limited of €100,000 equivalent to \$110,390.
On 6 June 2023 Altrecom PLC has made a capital contribution to Donimaro Limited of €60,000 equivalent to \$64,098.
| 30/06/2023 | 31/12/2022 | |
|---|---|---|
| Unaudited | Audited | |
| US\$ | US\$ | |
| Balance at 1 January | 186,852,866 | 58,841,786 |
| New loans granted | 4 | 142,770,125 |
| Interest charged | 3,242,051 | 2,382,422 |
| Exchange differences | 4,424,136 | 5,077,210 |
| Assignment of loan | - | (22,218,677) |
| Balance at 30 June/31 December | 194,519,057 | 186,852,866 |
| 30/06/2023 | 31/12/2022 | |
| Unaudited | Audited | |
| US\$ | US\$ | |
| Loans receivable | 194,519,057 | 186,852,866 |
| 194,519,057 | 186,852,866 | |
| Less current portion | (191,954,496) | - |
| Non-current portion | 2,564,561 | 186,852,866 |
On 20 April 2021, the Company entered into a loan agreement with Athletic Enterprises Limited, a related entity, for a principal amount of \$56,900,000 and an annual interest rate of 3.5%. The maturity date of the loan is 20 April 2024.
On 6 September 2021, the Company has entered into a loan agreement with the same unrelated entity for the principal amount of €150,000 with annual interest rate of 0.2%. As at 31 December 2021 the Company lend an amount of €110,000. The maturity date of the loan is 6 September 2024. On 10 November 2022, it was agreed by both parties to increase the interest rate from 0.25% to 3.75% annualy.
On 23 November 2021, the Company has entered into a credit facility agreement with the same unrelated entity for an amount up to €1,000,000. As at 31 December 2021, the Company lend an amount of €420,000. The credit facility has an annual interest rate of 0.25% and repayment date by 1 September 2026. On 10 November 2022, it was agreed by both parties to increase the interest rate from 0.25% to 3.75% annualy. On 16 November 2022, it was agreed by both parties to extend the credit facility up to €1,400,000.
On 21 December 2022, the Company has entered into a credit facility agreement with the same unrelated entity for an amount up to €1,000,000. As at 31 December 2022 the Company lend an amount of €260,000. The credit facility has an annual interest rate of 3.75% and repayment date by 21 December 2025.
On 21 December 2022, the Company has entered into an agreement with an unrelated entity, the "Seller", for the purchase of 5 promisory notes by another unrelated entity, the "Issuer" with the total consideration being €112,580,000.
The loans are repayable as follows:
| 30/06/2023 | 31/12/2022 | |
|---|---|---|
| US\$ | US\$ | |
| Within one year | 191,954,496 | - |
| Between one and five years | 2,564,561 | 186,852,866 |
| 194,519,057 | 186,852,866 |
Loans are denominated in United States Dollars and Euro.
The fair values of non-current receivables approximate to their carrying amounts as presented above.
| 30/06/2023 | 31/12/2022 | |
|---|---|---|
| Unaudited | Audited | |
| US\$ | US\$ | |
| Shareholders' current accounts - debit balances (Note 25.2) | 29,977 | 29,977 |
| Deposits and prepayments | 23,452 | 23,452 |
| 53,429 | 53,429 |
The fair values of other receivables due within one year approximate to their carrying amounts as presented above.
| 2023 | 2022 | |
|---|---|---|
| Unaudited | Audited | |
| US\$ | US\$ | |
| Balance at 1 January | 2,536,578 | 38,355,664 |
| Additions | 74,489 | 2,124,739 |
| Withdraw | (2,348,129) | (29,600,784) |
| Exchange differences | 4,435 | - |
| Net fair value changes | 255,396 | (8,586,619) |
| Interest Charged | - | 243,579 |
| Balance at 30 June/31 December | 522,769 | 2,536,579 |
The financial assets at fair value through profit or loss are marketable securities and are valued at market value at the close of business on 30 June by reference to quoted bid prices. Financial assets at fair value through profit or loss are classified as current assets because they are expected to be realised within twelve months from the reporting date.
In the consolidated cash flow statement, financial assets at fair value through profit or loss are presented within the section on operating activities as part of changes in working capital. In the consolidated statement of profit or loss and other comprehensive income, changes in fair values of financial assets at fair value through profit or loss are recorded in operating income.
| 2023 Unaudited US\$ |
2022 Audited US\$ |
|
|---|---|---|
| Balance at 1 January | - | 124,586 |
| Additions | - | 11,107,840 |
| Repayments | - | (12,056,600) |
| Repayment | - | (124,586) |
| Gain on disposal | - | 948,760 |
| Balance at 30 June/31 December | - | - |
On 6 September 2021, the Company entered into an Investment Agreement with a third party, for an amount up to €550,000 interest free. The Investee shall repay the Company the invested amount not later than the 6th of September 2026 and pay 60% of annual profits gained from investement activity. As at 31 December 2021, the Company invested an amount of €110.000 (equivalent to \$124.586).
On 14 November 2022 the third party has repaid its amount owed to the company of €110,000 (\$124,586) along with the 60% of the profits of the third party as described in the agreement above.
For the purposes of the consolidated cash flow statement, the cash and cash equivalents include the following:
| 30/06/2023 | 31/12/2022 | |||
|---|---|---|---|---|
| Unaudited | Audited | |||
| US\$ | US\$ | |||
| Cash in hand | 554 | 11 | ||
| Cash with brokers | 1,789,330 | 3,408,511 | ||
| Cash at payment institutions | 109,543 | 836,784 | ||
| Current accounts | - | 81 | ||
| 1,899,427 | 4,245,387 | |||
| 21. Share capital | ||||
| 2023 | 2023 | 2022 | 2022 | |
| Number of | Number of | |||
| shares | US\$ | shares | US\$ | |
| Authorised | ||||
| Ordinary shares of €1,03 each | 24,883 | 30,108 | 24,883 | 30,108 |
| Issued and fully paid | ||||
| Balance at 1 January | 24,883 | 30,108 | 24,883 | 30,108 |
| Balance at 30 June/31 December | 24,883 | 30,108 | 24,883 | 30,108 |
Under its Memorandum the Company fixed its share capital at ordinary shares of nominal value of €1.03 each.
| 2023 | 2022 | |
|---|---|---|
| Unaudited | Audited | |
| US\$ | US\$ | |
| Balance at 1 January | 187,184,596 | 118,022,865 |
| Additions | 500,000 | 102,851,723 |
| Repayments | (2,703,099) | (32,582,021) |
| Interest | 5,218,110 | 5,692,681 |
| Exchange differences | 2,190,748 | (6,800,652) |
| Balance at 30 June/31 December | 192,390,355 | 187,184,596 |
| 30/06/2023 | 31/12/2022 | |
| Unaudited | Audited | |
| US\$ | US\$ | |
| Current borrowings | ||
| Convertible bond | 123,040,439 | - |
| Other loans | 69,349,916 | - |
| 192,390,355 | - | |
| Non-current borrowings | ||
| Convertible bond | - | 116,825,067 |
| Other loans | - | 70,359,529 |
| - | 187,184,596 | |
| Total | 192,390,355 | 187,184,596 |
Maturity of non-current borrowings:
| 30/06/2023 Unaudited |
31/12/2022 Audited |
|
|---|---|---|
| US\$ | US\$ | |
| Between two and five years | - | 187,184,596 |
The effective interest rate at the reporting date was as follows:
| 30/06/2023 | 31/12/2022 |
|---|---|
| % | % |
| Convertible bond 6 |
6 |
| Other loans 3.5 |
3.5 |
On 28 December 2020 and on 24 February 2021, the Company issued 3.530 and 29.412 convertible bonds for a total value of US\$3.000.500 and US\$25.000.200, respectively, which were acquired by a third party subject to terms of a private term sheet. On 15 April 2021, the third party gave its consent for the 32.942 convertible bond to be converted from US Dollars to Euro using a rate of 1:1 which will be applicable to the nominal value, listing price and annual coupon terms in accordance with the revised private bonds term sheet. Additionally, on 15 April 2021, the Company issued to the third party an amount of 85.220 convertible bonds with a total value of €72.437.000. The convertible bonds bear a coupon rate of 0,75% and have a maturity date of 28th of June 2024.
The bonds were issued to the third party via a private placement.
The Company has submitted an application for the listing of its securities on the Emerging Companies Market ("E.C.M.") of the Cyprus Stock Exchange ("CSE"). On 27th of April 2022, the CSE has approved the listing of up to 120.000 bonds (initial listing 118.162 Bonds), with nominal value €1.000 and listing price of €850 each, as well as 24.883 ordinarry shares of nominal value and listing price of €1,03 each, pursuant to Article 58 (1) of the Securities and Cyprus Stock Echange Law, as well as the simultaneous listing of these securities in the Central Depository and Central Regisrty of the CSE, in accordance with respective Law.
| 2023 | 2022 | |
|---|---|---|
| Unaudited | Audited | |
| US\$ | US\$ | |
| Balance at 1 January | 24,453 | 42,239 |
| Interest expense | 238 | 988 |
| Lease payments | (8,017) | (16,427) |
| Exchange differences | - | (2,347) |
| Balance at 30 June/31 December | 16,674 | 24,453 |
| 30/06/2023 | 31/12/2022 | |
| Unaudited | Audited | |
| US\$ | US\$ | |
| Maturity analysis: | ||
| Year 1 | 16,674 | 18,450 |
| Year 2 | - | 9,225 |
| 16,674 | 27,675 | |
| Less: unearned interest | - | (3,222) |
| 16,674 | 24,453 | |
| Analysed as: | ||
| Non-current | - | 6,003 |
| Current | 16,674 | 18,450 |
| 16,674 | 24,453 |
It is the Company's policy to lease its offices. The average lease term is 36 months. For period from 1 January 2023 to 30 June 2023, the average effective borrowing rate was 3.7% (2022: 3.2%). All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
All lease obligations are denominated in Euro.
The fair values of lease obligations approximate to their carrying amounts as presented above.
| Social insurance and other taxes Promissory notes liability Accruals Other creditors |
30/06/2023 Unaudited US\$ 32,864 12,017,319 4,347 8,983 |
31/12/2022 Audited US\$ 40,009 12,290,611 19,201 8,817 |
|---|---|---|
| 12,063,513 | 12,358,638 | |
| Less non-current payables | (12,017,319) | (12,290,611) |
| Current portion | 46,194 | 68,027 |
Following the assignment of loans as descibed in note 16, the Company has a payable amount of €11,240,023.47,equivalent to \$12,290,611.
The fair values of other payables due within one year approximate to their carrying amounts as presented above.
The Group is controlled by Mr. Ilya Chernykh, who owns 99.96% of the Parent's shares.
The following transactions were carried out with related parties:
The remuneration of Directors and other members of key management was as follows:
| 01/01/2023- | 01/01/2022- | |
|---|---|---|
| 30/06/2023 | 30/06/2022 | |
| Unaudited | Unaudited | |
| US\$ | US\$ | |
| Directors' remuneration | 12,996 | 23,692 |
| 12,996 | 23,692 | |
| 25.2 Shareholders' current accounts - debit balances (Note 17) | ||
| 30/06/2023 | 31/12/2022 | |
| Unaudited | Audited | |
| US\$ | US\$ | |
| Ilya Chernykh | 29,977 | 29,977 |
The shareholders' current accounts are interest free, and have no specified repayment date.
The Group had no contingent liabilities as at 30 June 2023.
The Group had no capital or other commitments as at 30 June 2023.
On 30 August 2023 the Company resolved that the authorized share capital of the Company be increased from Euro 25.629,49 divided into 24.883 ordinary shares of EUR 1,03 each to Euro 112.295.629,49 divided into 109.024.883 ordinary shares of nominal value of EUR 1,03 each by the creation of 109.000.000 ordinary shares of nominal value of EUR 1,03 each which will rank pari passu in all respects, with the existing ordinary shares of the Company.
On 2 October 2023 the Company announces that during the conversion period (15-30 September 2023), it has received one Voluntary Conversion Application for the conversion of 118,162 Bonds of nominal value of €1,000 each into ordinary shares of nominal value of €1.03 each of the Company at the conversion price of €0.927 per share. As a result, 108,347,033 new ordinary shares of the Company will be issued. The Company will take all necessary measures to list the new ordinary shares in the Cyprus Stock Exchange.
There were no material events after the reporting period, other than the reported items above, which have a bearing on the understanding of the consolidated financial statements.
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