RichReach Corporation Public Ltd

Interim / Quarterly Report • Sep 29, 2023

RichReach Corporation Public Ltd

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

For the period from 1st of January 2023 to 30th of June 2023

CONTENTS

	page
Board of Directors and other Corporate Information	3
Consolidated Statement of Comprehensive Income	4
Consolidated Statement of Financial Position	5
Consolidated Statement of Changes in Equity	6
Consolidated Statement of Cash Flows	7
Notes to the Consolidated Financial Statements	8 – 18

BOARD OF DIRECTORS AND OTHER CORPORATE INFORMATION

Board of Directors	George Koufaris Antonis Karitzis Christakis Ierides George Rousou Epaminondas Metaxas (resigned on 03/04/2023)
Company Secretary	Karanto Secretarial Limited
Independent Auditors	Ernst & Young Cyprus Limited Certified Public Accountants and Registered Auditors Jean Nouvel Tower 6 Stasinou Avenue PO Box 21656 1511 Nicosia, Cyprus
Registered Office	228 Archiepiskopou Makariou III Agios Pavlos Court, Block B' 4th floor, flat/office 411-412 3030, Limassol, Cyprus
Business Office	61A Larnakos Avenue, Office 402 2101 Aglandjia, Nicosia, Cyprus
Bankers	Eurobank Cyprus Ltd Bank of Cyprus Public Company Ltd
Registration number	HE 359049

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the period from 1st of January 2023 to 30th of June 2023

		01/01/2023 – 30/06/2023		01/01/2022 – 30/06/2022
	Note	Unaudited		Unaudited
		€	Margin	€	Margin
Revenue	6	228,009		218,372
Cost of Sales	7	(47,920)	(21.0%)	(84,809)	(38.8%)
Gross Profit		180,089	79.0%	133,563	61.2%
Other Operating Income		158		1,505
Selling and Distribution Expenses	8	(39,616)	(17.4%)	(26,646)	(12.2%)
Administrative Expenses	9	(83,769)	(36.7%)	(55,967)	(25.6%)
Earnings / (Losses) Before Interest, Tax, Depreciation & Amortisation (EBITDA)		56,863	24.9%	52,455	24.0%
Finance Income
Finance Costs	11	(728)	(0.3%)	(642)	(0.3%)
Expenses related to the listing of the Company's Shares at the Stock Exchange and Share Capital and Corporate Events	12	(7,319)	(3.2%)	(9,042)	(4.1%)
Depreciation	15	(2,896)	(1.3%)	(2,495)	(1.1%)
Amortisation	14	(66,095)	(29.0%)	(59,118)	(27.1%)
Profit / (Loss) before Tax		(20,175)	(8.8%)	(18,843)	(8.6%)
Tax		-	0.0%	(993)	(0.5%)
Net Profit / (Loss) for the Year		(20,175)	(8.8%)	(19,836)	(9.1%)
Profit / (Loss) per share attributable to the Shareholders of the Company (cents)	13	(0.18)		(0.17)

The notes on pages 8 to 18 are an integral part of these unaudited consolidated financial statements.

	as at	30/06/2023	31/12/2022
	Note	Unaudited	Audited
ASSETS		€	€
Non-Current Assets	14	298,355	296,809
RichReach Application ecosystem	ોર્ટ	2,056	2,316
Furniture & Office Equipment	ા ર	10,294	9,175
Computer Hardware	14	119	238
Software & Infrastructure		310,824	308,539
Current Assets
Trade and other Receivables	16	27,488	35,653
Cash and Cash Equivalents	17	26,756	17,304
		54,243	52,957
Total Assets		365,067	361,496
EQUITY AND LIABILITIES
Equity
Ordinary Share Capital	18	569,759	569,759
Share Premium		679,935	679,935
Accumulated Losses		(1,050,216)	(1,030,041)
		199,478	219,653
Advancements from Shareholders	19	281
		199,759	219,653
Current Liabilities
Trade and Other Payables	20	34,086	42,414
Payables to Related Parties in the next 12 months	22	7,500
Current Tax Liabilities	21	5,143	5,143
		46,729	47,557
Long Term Liabilities
Payables to Related Parties	22	118,579	94,286
		118,579	94,286
Total Equity and Liabilities		365,067	361,496

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the period from 1st of January 2023 to 30th of June 2023

	Note	Share Capital	Share Premium	Advancemen ts from Shareholders	Accumulat ed Losses	Total
		€	€	€	€	€
Balance at 1st of January 2022		566,487	557,894	124,500	(993,554)	255,327
Issue of Share Capital	18	2,459	122,041	(124,500)		-
Proceeds during the period	19					-
Net Loss for the period					(19,836)	(19,836)
Balance at 30th of June 2022 / 1st of July 2022		568,946	679,935	-	(1,013,390)	235,492
Issue of Share Capital	18	813				813
Proceeds during the period	19					-
Net Loss for the period					(16,652)	(16,652)
Balance at 31st December 2022 / 1st of January 2023		569,759	679,935	-	(1,030,041)	219,653
Issue of Share Capital	18					-
Proceeds during the period	19			281		281
Net Loss for the period					(20,175)	(20,175)
Balance at 30th of June 2023		569,759	679,935	281	(1,050,216)	199,759

Share premium is not available for distribution. In accordance with the Articles of Association, the Company can move to the concession of free and/or bonus shares to the existing shareholders of the Company against reduced or zero consideration. The aforementioned shares will be provided and covered from the share premium account, statement of comprehensive income, retained earnings and quasi-capital funds and/or in any other way the Law and Articles of Association allow, and these shares will be considered fully paid.

The advances from shareholders are made available to the Board of Directors for future increases of the share capital of the Company. Note that the increases of the share capital of the Company are completed when the additional shares start trading at the Emerging Companies Market of the Cyprus Stock Exchange.

Companies which do not distribute 70% of their profits after tax, as defined by the relevant tax law, within two years after the end of the relevant tax year, will be deemed to have distributed as dividends 70% of these profits. Special contribution for defence at 17% will be payable on such deemed dividends to the extent that the ultimate shareholders are both Cyprus tax resident and Cyprus domiciled. The amount of deemed distribution is reduced by any actual dividends paid out of the profits of the relevant year at any time. This special contribution for defence is payable by the Company for the account of the shareholders.

The notes on pages 8 to 18 are an integral part of these unaudited consolidated financial statements.

CONSOLIDATED STATEMENT OF CASH FLOWS for the period from 1st of January 2023 to 30th of June 2023

		01/01/2023 – 30/06/2023	01/01/2022 – 30/06/2022
	Note	Unaudited	Unaudited
		€	€
Cash Flow from Operating Activities
Net Profit / (Loss) before tax		(20,175)	(18,843)
Adjustments for:
Depreciation		2,896	2,495
Amortisation		66,095	59,118
Interest Income		-	-
Interest Expense		-	-
		48,816	42,770
Changes in Working Capital
Decrease / (Increase) in Trade and other Receivables	16	8,166	8,223
(Decrease) / Increase in Trade and other Payables	20	(8,328)	(12,569)
(Decrease) / Increase in Payables to Related Parties	22	31,793	19,801
Cash generated from Operations		80,447	58,225
Cash Flow from Investing Activities
Investment in Internally Generated Intangible Fixed Assets (the RichReach Application ecosystem)	14	(67,522)	(66,103)
Investment in Intangible Fixed Assets	14	-	-
Investment in Tangible Fixed Assets	15	(3,754)	(2,815)
Interest Received		-	-
Net Cash used in Investing Activities		(71,276)	(68,919)
Cash Flow from Financing Activities
Proceeds from Issue of Share Capital		-	-
Advancements from Shareholders	19	281	-
Taxes paid		-	-
Interest paid	11	-	-
Net Cash from Financing Activities		281	-
Net Increase / (Decrease) in Cash and Cash Equivalents		9,452	(11,686)
Cash and Cash Equivalents at the beginning of the period		17,304	24,694

The notes on pages 8 to 18 are an integral part of these unaudited consolidated financial statements.

1. Corporate Information

Country of incorporation

RichReach Corporation Public Ltd (the ''Company'') was incorporated in Cyprus on 11 August 2016 as a public limited liability company under the provisions of the Cyprus Companies Law, Cap. 113.

On 10 January 2019, the Cyprus Stock Exchange (CSE) announced the listing of the Company on the CSE Emerging Companies Market. The trading of the shares of the Company, has commenced on 16 January 2019.

The Company's registered office is at Archiepiskopou Makariou III, 228, Agios Pavlos Court, Block B', 4th floor, Flat 411-412, 3030, Limassol, Cyprus.

Principal Activities

The principal activity of the Group is the development, support, licencing, operation and promotion of the multifunction RichReach Application ecosystem available for smart devices.

2. Basis of preparation and measurement

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.

The financial statements have been prepared on a going concern basis which assumes that the group will continue to operate for the foreseeable future.

3. Summary of Significant Accounting Policies

Please refer to Note 4: "Adoption of new or revised standards and interpretations", to Note 5: "Summary of significant accounting policies" and to Note 6. "New accounting pronouncements" of the Audited Consolidated Financial Statements for the Year ended 31 December 2022.

4. Financial Risk Management Objectives and Policies

Please refer to Note 7: "Financial Risk management objectives and policies" of the Audited Consolidated Financial Statements for the Year ended 31 December 2022.

5. Critical Accounting Estimates, Judgments and Assumptions

Please refer to Note 8: "Critical Accounting Estimates, Judgments and Assumptions" of the Audited Consolidated Financial Statements for the Year ended 31 December 2022.

6. Revenue

	01/01/2023 – 30/06/2023 Unaudited	01/01/2022 – 30/06/2022 Unaudited
	€	€
RichReach Application ecosystem Corporate Modules
eLearning	3,000	3,000
Human Resources	23,870	11,238
Point of Sale	7,960	7,460
Salesman Ordering	11,160	10,560
Warehouse Management	9,860	-
	55,850	32,258
RichReach Application ecosystem Consumer Functions
vShop	7,800	7,700
eShop	20,263	3,000
Reservations	600	-
Marketing & Loyalty	19,850	20,100
	48,513	30,800
Other RichReach Application ecosystem Revenue
Consumer & Corporate Applications	1,433	2,100
Dedicated Cloud Servers	6,000	2,196
	7,433	4,296
Communication Functions
Business Communications	8,431	11,204
Trades, Professionals & Entertainment	1,582	5,097
	10,013	16,301
Other Revenue
Business Digitalisation	103,100	70,270
Medical Functions	3,100	64,447
	106,200	134,717
Total Revenue	228,009	218,372

Segmental Analysis

The Group is organised into a single operating segment based on the services provided in Cyprus. The segment has similar characteristics in the nature of the process, type of end customers and distribution methods.

The Group's services include mainly the development, support, licencing, operation and promotion of the multifunction RichReach Application ecosystem available for smart devices. Currently the Group only operates in Cyprus and the main clients of the Group are medium to large corporate clients. Management monitors the operating results of the business segment separately for the purposes of performance, assessment and resource allocation.

7. Cost of Sales

	01/01/2023 – 30/06/2023	01/01/2022 – 30/06/2022
	Unaudited	Unaudited
	€	€
RichReach Application ecosystem
Research & Development	31,215	33,327
Infrastructure	11,172	11,007
	42,387	44,335
Communication Functions
Trades, Professionals & Entertainment	723	2,536
Other Communication Services	4,753	6,672
	5,476	9,208
Other
Medical Functions	-	29,879
Revenue Collection Fees	57	182
Other Costs	-	1,205
	57	31,266
Total Cost of Sales	47,920	84,809
8. Selling and Distribution Expenses
	01/01/2023 – 30/06/2023	01/01/2022 – 30/06/2022
	Unaudited	Unaudited
	€	€

	39,616	26,646
Promotion Costs	37,616	26,283
Advertising Costs	2,000	363

9. Administrative Expenses

		01/01/2023 – 30/06/2023	01/01/2022 – 30/06/2022
	Note	Unaudited	Unaudited
		€	€
Staff costs	10	23,847	15,595
Rent		6,600	6,600
Common expenses		360	360
Licenses and taxes		-	-
Municipality taxes		-	-
Annual companies levy		700	700
Electricity		1,239	1,534
Water supply and cleaning		1,726	960
Insurance		225	219
Sundry expenses		1,291	4,001
Telephone, internet and postage		1,080	1,336
Stationery and printing		109	46
Subscriptions and contributions		-	90
Equipment maintenance		355	16
Computer supplies and maintenance		385	296
Computer Hardware		813	314
Computer Software		1,546	1,055
Auditors' remuneration - current year		-	-
Auditors' remuneration - prior year		-	-
Other professional fees		3,938	1,520
Secretarial fees and registered office fees		220	825
Inland travelling and accommodation		384	20
Motor vehicle running costs		3,180	3,235
External Operations & Accounting Services		13,086	13,745
India Team Expenses		24,445	3,500
Investor Expenditure		-	-
Specific Bad Debts		(1,761)	-
		83,769	55,967

10. Staff Costs

	Note	01/01/2023 – 30/06/2023 Unaudited €	01/01/2022 – 30/06/2022 Unaudited €
Directors' and management fees	22.1	20,754	12,047
RichReach Application ecosystem R&D personnel costs		23,762	18,937
Social Insurance Costs		4,383	3,238
Employee Benefits		-	1,753
		48,899	35,974

The number of employees employed by the Company during the first six months of 2023 and the first six months of 2022 were 3 and 3 respectively. These figures do not include external contractors on a full or part-time basis.

Staff costs directly associated with identifiable and unique application products controlled by the Group and that will probably generate economic benefits exceeding costs beyond one year are recognised as internally generated intangible assets (the RichReach

Application ecosystem). Staff costs relating to the research and development of the RichReach Application ecosystem that cannot be recognised as internally generated intangible assets are written off in the Cost of Sales expense: Research and Development.

11. Finance Costs

	01/01/2023 – 30/06/2023 Unaudited	01/01/2022 – 30/06/2022 Unaudited
	€	€
Sundry finance expenses	728	642
	728	642

12. Expenses relating to the listing of the Company's Shares at the Stock Exchange and Share Capital and Corporate Events

	01/01/2023 – 30/06/2023 Unaudited	01/01/2022 – 30/06/2022 Unaudited
	€	€
Cyprus Stock Exchange Recurring Fees	4,050	4,050
Nominated Advisor Fees	2,700	2,700
Other expenses related to the Cyprus Stock Exchange and Investors	569	1,192
Cyprus Stock Exchange New Shares Listing Fees		1,100
	7,319	9,042

13. Profit / (Loss) per share attributable to the Shareholders of the Company

	01/01/2023 – 30/06/2023 Unaudited	01/01/2022 – 30/06/2022 Unaudited
Loss attributable to the Shareholders	(20,175)	(19,836)
Weighted average number of ordinary shares during the period	11,395,171	11,378,921
Loss per ordinary share attributable to the Shareholders (€ cents)	(0.1770)	(0.1743)

14. Intangible Fixed Assets & Amortisation

	RichReach Application ecosystem *	Software & Infrastructure
	Unaudited	Unaudited
	€	€
Cost
Balance at 01 January 2022	741,514	1,303
Additions during 01/01/2022 – 30/06/2022	66,103
Balance at 30 June 2022	807,617	1,303
Additions during 01/07/2022 – 31/12/2022	80,306
Balance at 31 December 2022	887,923	1,303
Additions during 01/01/2023 – 30/06/2023	67,522
Balance at 30 June 2023	955,445	1,303

14. Intangible Fixed Assets & Amortisation (continued)

	RichReach Application ecosystem *	Software & Infrastructure
	Unaudited	Unaudited
	€	€
Amortisation
Balance at 01 January 2022	457,054	827
Amortisation during 01/01/2022 – 30/06/2022	58,999	119
Balance at 30 June 2022	516,053	946
Amortisation during 01/07/2022 – 31/12/2022	75,061	119
Balance at 31 December 2022	591,114	1065
Amortisation during 01/01/2023 – 30/06/2023	65,976	119
Balance at 30 June 2023	657,090	1,184
Net Book Value
at 30 June 2022	291,564	357
at 31 December 2022	296,809	238
at 30 June 2023	298,355	119

* Internally generated intangible assets

15. Tangible Fixed Assets & Depreciation

	Furniture & Office	Computer Hardware
	Equipment
	Unaudited	Unaudited
	€	€
Cost
Balance at 01 January 2022	16,409	22,348
Additions during 01/01/2022 – 30/06/2022		2,815
Balance at 30 June 2022	16,409	25,163
Additions during 01/07/2022 – 31/12/2022		1,554
Balance at 31 December 2022	16,409	26,717
Additions during 01/01/2023 – 30/06/2023	748	3,006
Balance at 30 June 2023	17,157	29,724
Depreciation
Balance at 01 January 2022	12,226	14,104
Depreciation during 01/01/2022 – 30/06/2022	932	1,563
Balance at 30 June 2022	13,158	15,667
Depreciation during 01/07/2022 – 31/12/2022	935	1,875
Balance at 31 December 2022	14,093	17,542
Depreciation during 01/01/2023 – 30/06/2023	1,008	1,888
Balance at 30 June 2023	15,101	19,430
Net Book Value
at 30 June 2022	3,251	9,496
at 31 December 2022	2,316	9,175
at 30 June 2023	2,056	10,294

16. Trade and other Receivables

	30/06/2023 Unaudited	31/12/2022 Audited
	€	€
Deposits & Prepayments	2,652	4,400
Other Receivables	24,835	31,254
	27,488	35,653

The fair values of trade and other receivables due within one year approximate to their carrying amounts as presented above. No impairment of trade receivables has been incurred during the year.

Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days. The Company has implemented IFRS 9, no provision has been made for expected credit losses as there were no material past due trade and other receivables as at the year-end.

17. Cash and Cash Equivalents

Cash balances are analysed as follows:	30/06/2023 Unaudited	31/12/2022 Audited
	€	€
Cash in hand	314	458
Cash at bank	26,441	16,846
	26,756	17,304

18. Ordinary Share Capital

	30/06/2023 Unaudited		31/12/2022 Audited
	Number of shares	€	Number of shares	€
Authorised shares Ordinary Shares of €0.05 each	15,000,000	750,000	15,000,000	750,000
Issued and fully paid shares Ordinary Shares of €0.05 each	11,395,171	569,759	11,395,171	569,759

Authorised Capital

• Upon incorporation on 11 August 2016 and as per its Memorandum of Association, the Company's Authorised Share Capital was 554,600 ordinary shares of nominal value of €0.05 each (€27,730).
• On 21 November 2017 the Company increased its Authorised Share Capital to 12,000,000 ordinary shares of €0.05 each (€600.000).
• On 09 September 2019 the Company completed the increase of its Authorised Share Capital to 15,000,000 ordinary shares f €0.05 each (€750.000).

Issued Capital

• Upon incorporation on 11 August 2016, the Company issued to the subscribers of its Memorandum of Association 554.600 ordinary shares of nominal value of €0,05 each and at a total Share Premium of €620.826.
• On 22 November 2017 the Company proceeded to a bonus share issue (10,595,400 bonus shares) out of share premium that increased its Issued Share Capital to 11,150,000 ordinary shares of €0.05 each (€557.500).
• On 16 January 2019 the (11,150,000) issued shares of the Company started trading at the Emerging Companies Market of the Cyprus Stock Exchange.
• On 14 October 2019, 96,778 additional fully paid shares started trading at the Emerging Companies Market of the Cyprus Stock Exchange. The shares were issued at the total nominal value of €4,838.90 (€0.05 each) and at a total Share Premium of €245,486.10.

• On 22 January 2020, 15,278 additional fully paid shares started trading at the Emerging Companies Market of the Cyprus Stock Exchange. The shares were issued at the total nominal value of €763.90 (€0.05 each) and at a total Share Premium of €49,236.10.

• On 14 August 2020, 36,111 additional fully paid shares started trading at the Emerging Companies Market of the Cyprus Stock Exchange The shares were issued at the total nominal value of €1,805.55 (€0.05 each) and at a total Share Premium of €88,194.45.

• On 07 January 2021, 14,305 additional fully paid shares started trading at the Emerging Companies Market of the Cyprus Stock Exchange The shares were issued at the total nominal value of €715.25 (€0.05 each) and at a total Share Premium of €50,784.75.
• On 20 May 2021, 17,274 additional fully paid shares started trading at the Emerging Companies Market of the Cyprus Stock Exchange The shares were issued at the total nominal value of €863.70 (€0.05 each) and at a total Share Premium of €33,136.30.
• On 11 January 2022, 28,046 additional fully paid shares started trading at the Emerging Companies Market of the Cyprus Stock Exchange The shares were issued at the total nominal value of €1,402.30 (€0.05 each) and at a total Share Premium of €98,347.70.
• On 8 March 2022, 21,129 additional fully paid shares started trading at the Emerging Companies Market of the Cyprus Stock Exchange The shares were issued at the total nominal value of €1,056.45 (€0.05 each) and at a total Share Premium of €23,693.55.
• On 16 December 2022, 16,250 additional fully paid shares started trading at the Emerging Companies Market of the Cyprus Stock Exchange The shares were issued as part of the Stock Option Scheme of the Company at the total nominal value of €812.50 (€0.05 each).

Share Premium is not available for distribution. In accordance with the Articles of Association, the Company can move to the concession of free and/or bonus shares to the existing shareholders of the Company against reduced or zero consideration. The aforementioned shares will be provided and covered from the share premium account, statement of comprehensive income, retained earnings and quasi-capital funds and/or in any other way the Law and Articles of Association allow, and these shares will be considered fully paid.

19. Advancements from Shareholders

	30/06/2023	31/12/2022
	Unaudited	Audited
	€	€
Directors (Stock Options exercised)	281	-
	281	-

The advances from shareholders are made available to the Board of Directors for future increases of the share capital of the Company. Note that the increases of the share capital of the Company are completed when the additional shares start trading at the Emerging Companies Market of the Cyprus Stock Exchange.

20. Trade and other Payables

	30/06/2023 Unaudited	31/12/2022 Audited
	€	€
Trade Payables & Other Creditors Social Insurance and other Taxes	15,984 2,391	8,734 2,704
Value Added Tax	15,706	18,971
Accruals	5	12,005
	34,086	42,414

Trade payables are non-interest bearing and are normally settled on 60 day terms. The fair values of trade and other payables due within one year approximate to their carrying amounts as presented above.

21. Current Tax Liabilities

	30/06/2023	31/12/2022
	Unaudited	Audited
	€	€
Corporation Tax	5,143	5,143
	5,143	5,143

22. Related Party Transactions

The major shareholders of the Company are:

• 3L Transcendent Investments Limited, incorporated in Cyprus, which on 30/06/2023 and on 31/12/2022 held 72.337% of the Company's shares.
• Coeur DeLion Software Engineering Ltd, incorporated in Cyprus, which on 30/06/2023 and on 31/12/2022 held 18.768% of the Company's shares. Coeur DeLion Software Engineering Ltd is controlled by the member of the Board of Directors: George Rousou.

The Members of the Board of Directors hold shares of the Company as follows:

• George Koufaris on 30/06/2023 and on 31/12/2022 held 0.071% of the Company's shares.
• Antonis Karitzis on 30/06/2023 and on 31/12/2022 held 0.461% of the Company's shares.
• Christakis Ierides on 30/06/2023 and on 31/12/2022 held 0.201% of the Company's shares.
• George Rousou, directly and indirectly (through undertakings controlled by George Rousou), on 30/06/2023 and on 31/12/2022 held 19.996% of the Company's shares.

The following transactions were carried out with related parties:

22.1 Directors' & Key Management Remuneration

The gross remuneration of Directors and other members of key management was as follows:

	01/01/2023 – 30/06/2023 Unaudited	01/01/2022 – 30/06/2022 Unaudited
	€	€
Directors' Remuneration	-	-
Key Management	20,754	12,047
	20,754	12,047

Remuneration costs of directors and key management that are directly associated with identifiable and unique computer software products controlled by the Group and that will probably generate economic benefits exceeding costs beyond one year are recognised as internally generated intangible assets.

22.2 Purchases of Services

		01/01/2023 – 30/06/2023	01/01/2022 – 30/06/2022
		Unaudited	Unaudited
	Nature of transactions	€	€
Coeur DeLion Software Engineering Limited	Software research, development and support	94,301	69,080
3L Baccarat Investments (Int'l) Ltd	Software research, development and support, Marketing & Promotion	22,849	28,204
		117,150	97,284

The purchases from related parties are made on terms equivalent to those that prevail in arm's length transactions. The above amounts include VAT (where applicable).

22.3 Payables to Related Parties

	Nature of transactions	30/06/2023 Unaudited	31/12/2022 Audited
		€	€
Coeur DeLion Software Engineering Limited	Software research, development and support	95,519	64,881
3L Baccarat Investments (Int'l) Ltd	Software research, development and support, Marketing & Promotion	18,217	17,062
		113,737	81,943

The payables to related parties are interest free.

The Company and Coeur DeLion Software Engineering Limited have agreed that the payable amount will be repaid through monthly payments starting in January 2024 (Note 22.5)

The amount payable to 3L Baccarat Investments (Int'l) Ltd has no specific repayment date.

22.4 Director's Current Account – Credit Balance

	30/06/2023	31/12/2022
	Unaudited	Audited
	€	€
Director's Current Account	12,343	12,343
	12,343	12,343

The director's current account is interest free.

The Company and the Director, George Rousou, have agreed that the payable amount will be repaid through monthly payments starting in January 2024 (Note 22.5).

22.5 Payables to Related Parties in the next 12 months

	30/06/2023 Unaudited €	31/12/2022 Audited €
Coeur DeLion Software Engineering Limited	6,000	-
Director's Current Account – George Rousou	1,500	-
	7,500	-

23. Contingent liabilities

The Group had no contingent liabilities as at 30 of June 2023.

24. Commitments

The Group had no capital or other commitments as at 30 of June 2023.

25. Events after the reporting period

Depending on the duration of the conflict between Russia and Ukraine, and continued negative impact on economic activity, the Group might experience further negative results, and liquidity restraints and incur additional impairments on its assets in 2023 which relate to new developments that occurred after the reporting period.

The impact of events after the reporting date on the going concern is described in note 5 of the Audited Consolidated Financial Statements for the Year ended 31 December 2022.

The Company has offered 8,125 Stock Option Shares to the Directors Mr Georgios Koufaris, Mr Epaminondas Metaxas and Mr Christakis Ierides who have declared interest in participating in the Stock Option Scheme of the Company. Following the resignation of Mr Epaminondas Metaxas on 03/04/2023, the Stock Options that could be exercised have

been reduced to 7,709. The period for exercising these Stock Options started on 01/06/2023 and ended on 31/08/2023. All three Directors have exercised in full the Stock Options they could exercise and the Company has approved the exercise of these Stock Options.

There were no other material events after the reporting period, which have a bearing on the understanding of the consolidated financial statements.