Norwegian Block Exchange AS

Interim / Quarterly Report • Sep 20, 2024

H1 Report 2024

Norwegian Block Exchange

Table of contents

This is NBX	1
Letter from Stig	2
H1 2024 brief	4
Highlights	6
Developments	7
Risk factors and uncertainties	11
Corporate governance	14
Financial Review	15
Financial Statements	17
Notes	22

This is

NBX, headquartered in Oslo, Norway, is a financial services company that specializes in developing digital asset-based products.

Our goal is to make the world of digital assets accessible to everyone. We are committed to expanding our reliable and innovative services enabled by crypto, including our latest compliance and custody services, staking, and credit card with bitcoin cashback.

NBX is registered with the Norwegian Financial Supervisory Authority (Finanstilsynet), audited by Moore and is listed on Oslo Stock Exchange Euronext Growth.

This report covers both NBX and NBX Capital as a group of companies.

7	Nationalities
8	Countries
13	Employees

Letter from the CEO

Dear fellow shareholders

It is finally happening, crypto is on the verge of becoming mainstream. In the US, besides one of the Presidential candidates launching his own DeFi crypto trading venue, the clearest sign is the inflow into the ETFs this year. Entering 2024 the AUM of bitcoin ETFs was 28 USD billion which has increased to 54 USD billion by mid September 2024. In the EU we see that the regulation for "Markets in Crypto Assets" (MiCA) is being implemented across EU member states, allowing for an even playing field for crypto assets service providers as ourselves. This does not only increase consumer protection, but allows companies like NBX to expand their services and products across Europe. MiCA is also making it easier to cooperate and establish partnerships with traditional finance institutions as they now have a clear understanding of how the regulation works. It is the MiCA regulation that enables NBX to again set the direction of becoming a digital asset bank, something our most recent hire: Nicolai Lunde, our new CFO, will take a key lead role in.

The first 6 months of 2024 have been an exciting journey, our trading volume and revenues related to trading tripled compared to last year. A soft scale-up in marketing efforts and visibility have been executed and continues. We have continued to build our platform and expanded our services. We showcased with the Real World Asset platform for The Mint, that NBX can tokenize, build, launch and operate a marketplace for token economies. We launched several new crypto trading pairs. Built an internal CRM system to better handle transaction monitoring, customer support and case handling in addition to adding further customer security measures protecting our valued customers better against attacks. A drawdown is that the costs related to funding affects the period quite hard, since most of those are booked to that period, although with small cash effects.

The NBX Visa credit card has now been out for more than one year, which is the time necessary to collect adequate credit data to safely ramp up the issuance of cards. To facilitate this we entered into a distribution agreement with LOAX and gained access to their network of stores. The NBX Visa Credit Card is definitely one of the most exciting credit cards in Norway from a customer point of view with a 1% BTC cashback. The card is the first of its kind in the world and makes NBX attractive for larger distributors. Increasing the balance is now our priority, and the card will be an important contributor to profitability in the future as we transit towards a digital asset bank.

We are really excited about the partnership with Moneta, making NBX an issuer of the USD stablecoin USDM in the European Union. The USDM is the only fiat-backed USD stablecoin on the Cardano blockchain, putting it in a unique position when it comes to expected adoption and issuance of the stablecoin. This offers us, as the issuer, a large upside in terms of revenue from the interest generated by the funds in custody backing the stablecoin.

As we navigate the exciting landscape of cryptocurrency in 2024, I am pleased to report that NBX is strategically positioned to capitalize on the mainstream adoption of digital assets.

All the best, Stig

Live your life, save in bitcoin.

H1 2024 brief

The cryptocurrency market got off to a flying start in 2024 as the much anticipated spot Bitcoin ETFs launched in the US on January 11th. The launch marked yet another important step towards mainstream cryptocurrency adoption - and was fuelled further by the subsequent price action and the recurring quadrennial "halvening event" - also known as the Bitcoin halving. In fact, Bitcoin, and cryptocurrencies in general, garnered so much traction during the first half of the year that it even became one of the top talking points of the 2024 US presidential election campaigns.

During the first half of the year, on-chain estimates provided by crypto.com showed that the amount of global cryptocurrency owners continued to grow as it rose from 580 million in December 2023 to 617 million by the end of Q2 2024. Bitcoin continued to dominate with a market share above 50% and experienced a price surge of 44,2% as it added approximately 372 billion USD to its market capitalization.

In all, NBX thrived in what we consider favorable market conditions, and we are excited to share what we accomplished during the first half of the year.

Q1

• Granted a license from the Financial Supervisory Authority of Norway to start operating as an e-money institution.
• Launched The Mint a one of a kind marketplace for tokenized rubies and sapphires.
• Increased the credit limit of our NBX Visa credit card to 50K NOK.
• Established SunSpearX An innovative company that aims to provide retail access to profitable solar energy and battery projects.

Q2

• Entered into a partnership with Moneta to be the european issuer of the USDM stablecoin - the first 1:1 fully fiat-backed stablecoin on the Cardano blockchain.
• Launched Apple Pay for our NBX Visa credit card.
• Launched Stellar on our platform.
• Launched Cosmos on our platform.
• Increased the default cash back on our NBX Visa credit card from 0,5% to 1%.
• Launched Solana on our platform.
• Launched Avalanche on our platform.
• Launched Algorand on our platform.
• Entered into an agreement with Stjørdalsblink to be one of their sponsors.
• Launched Polkadot on our Platform.
• Launched Swish, the Swedish equivalent to Vipps for our Swedish customers.

H1 2024 Highlights

In fact, the majority of our accomplishments stem directly from our unwavering commitment to user satisfaction. We listen to the feedback of our users and we then implement their suggestions to the very best of our abilities. While this focus remains central to our efforts, we wish to underscore three accomplishments of which we are particularly proud.

E-money institution

On the 22th of January, NBX received an e-money license from the Financial Supervisory Authority of Norway to start operating as an e-money institution, thus becoming the first cryptocurrency exchange in the Nordics to obtain such a license. The permit marked a milestone for NBX as it demonstrated our unwavering commitment to be fully compliant with all aspects of being a legitimate provider of blockchain technology services. The significance of the permit grant can not be understated, as it enables NBX to extend our market presence through cross-border operations and further allows us to offer products and services that are reserved for traditional financial institutions.

Launch of The Mint

The hard work persisted as the new year commenced, as NBX launched The Mint - a first-of-itskind marketplace for tokenized rubies and sapphires, showcasing our ability to create innovative, secure platforms for tokenizing real-world assets. This highlighted our expertise in blending blockchain technology with traditional investment assets, allowing investors to own and trade valuable gemstones through NFTs. By leveraging our advanced blockchain capabilities, NBX has successfully built a transparent, tamper-proof system that enables flexible ownership while ensuring the authenticity and value of each asset. Our success with The Mint demonstrates our leadership in pioneering tokenized markets for tangible assets.

European issuer of the USDM stablecoin.

As Q2 got underway, NBX managed to land a major agreement with Moneta Finance LLC to make NBX the sole European issuer of the USDM stablecoin. USDM is the first fully reserved, fiat-backed stablecoin on the Cardano blockchain - one of the biggest cryptocurrencies in the world in terms of market capitalization. Although Moneta already oversees USDM in the U.S., NBX will be responsible for the issuance and redemption in Europe, aligning flawlessly with regulations such as MiCA. By leveraging our e-money license, we will be able co-issue USDM for minting and redemption into USD all the while ensuring full regulatory compliance and transparency.

Developments

Platform growth

The total platform volume for H1 2024 ended at MNOK 419.0. Compared to H1 2023, which came in at MNOK 201.9, this year has started significantly better. Platform volume is shown above, where the columns are quarterly numbers, represented on the left axis. The accumulated volume is represented by the volume chart on the right axis.

OTC trading volumes, where customers do larger deals, or trade in tokens not registered at our exchange, accumulated to MNOK 121.8. In H1 2023 this number was MNOK 11.2, representing an increase of 987.5%. Our OTC team is seeing strong demand from both returning customers seeking additional trades and new customers exploring OTC for the first time. Additionally, we observe a good balance between private and corporate accounts.

Including both the platform and the OTC trading, total volume traded in H1 2024 was MNOK 540.8. Compared to H1 2023 (MNOK 213.2), the increase in total volume traded was 153.7%. We remain committed to providing the best possible trading experience for our customers, and are confident that our efforts will result in continued growth and success in the future.

Customer growth

At NBX there are three different distinctions of users:

• Registered users: Customers registered on the platform with username and password
• Verified users: Customers who have gone through full KYC and are approved for trading on the platform

Unique users: Users that have traded within the given period

In the first half of 2024, there has been a noticeable increase across all user categories when compared to the previous half-years. For New Unique Users, the numbers rose significantly from 3,493 in H1 2023 and 3,540 in H2 2023 to 4,460 in H1 2024. This represents a substantial growth of 27.7% compared to H1 2023 and 26.0% compared to H2 2023.

The New Verified Users category also showed impressive growth. In H1 2024, the number reached 2,669, up from 2,262 in H1 2023 and 2,027 in H2 2023. This marks an 18.0% increase from H1 2023 and an even more remarkable 31.7% increase from H2 2023.

Finally, the number of New Registered Users in H1 2024 climbed to 5,680, showing a steady increase from 5,123 in H1 2023 and 4,427 in H2 2023. This growth represents a 10.9% rise compared to H1 2023 and a significant 28.3% increase compared to H2 2023. Overall, H1 2024 has demonstrated positive momentum in user engagement and onboarding, with consistent and substantial growth across all metrics.

By the second half of 2024, we reached approximately 94,000 registered users and 37,000 verified users, highlighting a sustained growth in user participation and commitment over the course of the year.

Movements in currencies

The distribution of cryptocurrency trading on our platform remained stable in the first half of the year. BTC continues to dominate, accounting for over half of the total trading volume on the exchange. ETH held its position as the second most traded cryptocurrency, followed by USDC in third place. In addition to maintaining a steady top three, we expanded our offerings with the successful launch of five new tokens: XLM, ATOM, ALGO, DOT, and SOL. These additions enhance our platform's diversity and provide our users with more opportunities to engage in the cryptocurrency market.

The NBX Visa credit card

Since its launch on July 4, 2023, the NBX Visa credit card has continued to build trust and gain popularity, thanks to its innovative Bitcoin cashback feature. This year, we've enhanced our offering by increasing the entry-level cashback rate from 1% (0.5%) to 4%, ensuring that all cardholders benefit more from their spending, even without any trading activity on NBX.

Our tiered cashback system remains linked to the user's trading volume on NBX over a rolling three-month period, with cashback rates ranging from 1% to 4%. This makes the card highly attractive for both casual and active users. Additionally, our referral program allows users to unlock the 4% cashback tier solely by referring new users, without needing to engage in any trading themselves. Each successful referral continues to earn a 150 NOK bonus.

Starting in August, we are excited to introduce the Card Owner Program. This program allows NBX shareholders to upgrade their cashback level based on their stock holdings. Shareholders with 25,000 NBX stocks will receive a one-level upgrade, while those with 150,000 stocks will enjoy a two-level upgrade. This initiative further rewards our loyal investors and enhances the value of both our card and our community. The ongoing enhancements, combined with the card's growing market traction, reinforce our confidence in its role as a key driver of NBX's future growth.

Risk factors and uncertainties

The crypto market is notoriously volatile. Exchange rates can swing dramatically within short time frames, affecting trading volumes and liquidity. Such fluctuations can impact the company's revenue. The substantial pick-up in market activity seen at the end of 2023 did not continue into a strong bull market in the first half of 2024 confirming that NBX' strategy to balance out this risk by strengthening other business areas not directly correlated to the activity on the exchange platform still is rational.

The legal framework for crypto assets in Norway is still evolving. While there is no specific Norwegian law targeting crypto assets, the coming EU regulation (MiCA) will have a major impact on the industry. Failure to adopt the regulation into Norwegian legislation in a timely manner may have an adverse effect on the level of activity in the company and may affect the future revenues.

Market risk

The company's market risk is linked to developments in both national and international markets. The company's goal of becoming a global player in virtual currency and blockchain technology is affected by future regulations in various countries. The company is directly dependent on being able to adapt to the regulations that exist in countries where the company has a presence.

Operating income mainly comes from commission-based earnings from trading on the trading platform, but in 2023 NBX also had revenue from the NBX Visa Credit Card with Bitcoin cashback, as well as custody services and tokenization projects.

Currently, the market in the Nordic region is stable and apparently not very price sensitive. We have competitive pricing compared to other Nordic exchanges, but a price war or the entry of a major international player in the Nordic market could still affect earnings. In accordance with the planned roadmap, we foresee strengthened revenue streams from the NBX Visa Credit Card, as well as from the current investment in tokenization projects.

Credit risk

The company has, together with financial partner Nordiska, adopted a credit policy with guidelines for granting credit, risk limits, monitoring and reporting. NBX is regularly updated on important credit risk processes and key indicators. The company through Nordiska only offers loans to private individuals after a credit assessment that considers the borrower's willingness and ability to pay. The credit decision for the individual loan application is based on an assessment of available external and internal information about the applicant. A combined process is carried out using an application score and specific credit rules.

The company does not provide trading services on credit as settlement takes place immediately upon trading.

Liquidity risk

The company is still in a start-up phase, and one of the main activities is investment in development of new services and products where the return is expected in the future. At the same time, the company continuously launches revenue-generating services and products. The inherent skepticism to crypto from traditional finance and other industries seems to be on the wane. NBX has spent much time educating partners on blockchain technology and assurances on our own thorough AML regime. Even so, this continues to pose a risk that development will take longer than anticipated. Regulatory obstacles may also delay the launch of products and services. Ultimately, this may cause a need for increased liquidity in order to maintain desired progress.

Currency risk

Norwegian Block Exchange

The company has costs related to various currencies based on both employees and service providers. No hedging positions have been entered into for these. In the future, the company will have an income stream in several of these currencies. This will then be a natural hedge. The company also has working capital in virtual currencies, where Bitcoin makes up the majority. NBX hedges crypto exposure in tokens where NBX operates a market making function.

Saving made fun and simple.

Corporate governance

The company is not subject to the Norwegian Corporate Governance Code (the "Corporate Governance Code"), but the company will consider implementation of the recommendations of the Corporate Governance Code over time.

Annual General Meeting

The annual general meeting for 2024 took place on the 13th of June at NBX' headquarters in Bærum.

The Board of Directors

• Nils Sundling (Chair)
• Bjørn Kjos
• Anna Helene Kjos-Mathisen
• Vahid Toosi
• Asbjørn Abrahamsen
• Rony Solaiman
• Vegard Kristiansen

Auditor

Independent auditing of NBX is performed pursuant to the law by the audit firm (Moore).

Working environment, gender equality and discrimination

The board considers the working environment in the company to be good. No special measures have been implemented in this regard. Employees in the company have not been exposed to accidents or injuries in connection with the performance of their work. Total sick leave last year was a total of 36 days, which constitutes about 1% of total working hours in the financial year.

Norwegian Block Exchange AS aims to be a workplace where there is full equality between women and men, and has incorporated a personnel policy that is considered to be gender neutral in all areas. At the end of the year, the company had 10 employees in Norway and 3 in Latvia. The workforce is split between 2 women and 11 men. In addition, NBX had 6 employees on contract in different European locations. The company's board consists of 7 people, of which 1 is a woman.

Financial review

Despite global geopolitical instability and economic uncertainty, the first half of 2024 marked a period of resilience and strategic growth for NBX. During this time, the company focused on a methodical approach to managing its activities, further enhancing its operations and market presence. Following a recovery year in 2023, NBX concentrated on developing innovative products and services while maintaining strong partnerships and ownership structures throughout the period.

Total Operating Income: As of June 2024, total operating income increased by 97% to MNOK 6,6. A substantial portion of this growth was driven by NBX's expansion into services such as staking pools, tokenization, and cybersecurity consulting to private clients. Income from these services grew by 89% compared to the first half of 2023. Additionally, the income from platform fees increased by 81%, largely attributed to a surge in cryptocurrency prices and trade volume during the period.

Total Operating Expenses: For the first half of 2024 total operating expenses increased by 4%. A significant increase in expense is located in Data leasing, and legal & financial advisory services by MNOK 1 and MNOK 0.3 respectively, mainly driven by high activities related to trading, as well as advisory and services related to capital raising and debt conversion. The cost of the NBX Visa Credit Card program added MNOK 2,5 to expenses, while marketing, insurance, and late fees also contributed to the overall cost structure. However, long-term cost-saving measures, particularly in labor, helped mitigate these increases, resulting in a fine improvement by 18% in overall operating profit compared to last year's same period.

Financial Income: Although income from FX-related activities declined by 180%, total financial income rose by 185%. This increase was driven by a 163% rise in crypto staking income, and overthe-counter (OTC) trading income increased significantly by MNOK 1,5 during the same period. Additional contributions came from profit on market-making, which increased by 41%. Altogether, this growth resulted in an overall positive outcome for financial income.

Financial Expenses: Results for June 2024 indicate MNOK 3,4 in overall financial expenses compared to the same period in 2023 at MNOK 0.241. The key factor that escalates this to MNOK 3,4 from MNOK 0. 241 is the accrued interest rate on the convertible loans and funding costs. Although these loans are not necessarily paid out, they must be recorded as financial expenses to comply with the accounting standards. That being the case, net financial income for this period decreased significantly.

Even with that considered, net result before tax came out better by 13.5% than the previous period. This is due to expansion into services such as staking pools, tokenization, and cybersecurity consulting to private clients, and long-term cost-saving measures, particularly in labor. Overall, the total operating profit for the half year of 2024 ends at MNOK -9.6 ( -9.5 MNOK for NBX and -0.112 MNOK for NBX Capital).

Financial Position: The financial position of NBX for this period stands at MNOK 134, comprising MNOK 94,9 in intangible assets, MNOK 2 in tangible assets, and NOK 30 000 in investments in subsidiaries, bringing total fixed assets to MNOK 97. The current assets amount to MNOK 36, consisting of MNOK 20,8 in fiat assets, MNOK 11,9 in financial instruments and MNOK 4 in receivables.

Cash Flow

Cash holdings increased slightly compared to the same period last year, primarily due to the introduction of new services and improved cost management. Investment activities remained consistent with 2023, with the majority of spending directed toward research and development of NBX's platform infrastructure.

Cash from Operating Activities: In addition to strong trading activity, which generated positive cash flow, the extended services (staking pools, tokenization, and cybersecurity consulting) further bolstered cash inflows. However, there was a significant increase in cash outflows related to the NBX Credit Card program and trading-related expenses. Although administrative costs were kept under control, suppliers' costs remain challenging, and compliance with VAT regulations adds additional complexity and costs. The company's reliance on foreign suppliers increases costs by an additional 25%, and VAT refunds are not available for domestic invoices due to NBX`s nature of activity. Nevertheless, NBX's operations strive to provide high-quality services to enhance trading and customer satisfaction, though this introduces some liquidity risk, and results in a negative cash inflow from operating activities.

Cash from Investing Activities: In pursuit of its goal to become a hub for financial services within the cryptocurrency economy, NBX allocated significant resources into research and development of blockchain platforms, investing a total of MNOK 4.6. This provides code updates and platform mergers, over the period, 2457 code updates were implemented, which reflects a high developer's productivity. This investment secured key customer agreements in custody and tokenization, and continues to generate positive cash inflows.

Cash from Financing Activities: NBX's financing activities generated cash inflows during the first half of the year. This was achieved through capital raised from investors via the issuance of new bonds and convertible loans from existing shareholders, further supporting the company's business cycle.

Share Figures: The total number of shares outstanding in Norwegian Block Exchange AS was 137,042,921 each with a par value of NOK 0.6. Each share is entitled to one vote. The highest and lowest closing price during H1 2024 was NOK 1.37 (13. March) and NOK 0.60 (21. June) respectively. The shares ended H1 at NOK 0.69 per share on 28. June 2024

Continued operations: In accordance with section 3-3a of the Accounting Act, it is confirmed that the assumption of continued operation is present and that this assumption has been used as a basis for the preparation of the accounts.

Statement of the annual accounts: The board is not aware of any matters of importance for assessing the company's position and results that are not stated in the accounts and the balance sheet with notes. Nor have circumstances occurred after the end of the financial year that, in the Board's view, are important in assessing the accounts.

Norwegian Block Exchange

Financial Statements H1 2024

Parent				Numbers in 1 000 NOK (Note)			Group
H1 2024	Unaudited	H1 2023 Unaudited	2023 Audited	Revenue statement	H1 2024 Unaudited	H1 2023 Unaudited	2023 Audited
				Operating income
	2 127	724	2 486	Revenue	2 127	724	2 486
	4 530	2 648	5 400	Other income	4 530	2 648	5 400
	6 657	3 372	7 886	Operating Income	6 657	3 372	7 886
				Operating expenses
	5 635	7 741	13 906	Employee benefits expense	5 635	7 741	13 906
	1 575	1 919	3 819	Depreciation and amortisation expenses (2, 3)	1 575	1 919	3 819
		−87	−136	Write down on tangible and intangible assets (2, 3)		−87	−136
	11 093	8 047	19 064	Other operating expenses	11 240	8 127	19 203
	18 304	17 619	36 653	Operating expenses	18 450	17 700	36 791
−11 647		−14 247	−28 767	Operating profit	−11 793	−14 328	−28 906

3 155	1 045	1 925	Other financial income	3 159	1 045	1 928
-1 402	-758	-1 958	Other Interest expenses	−1 402	−758	−1 958
−2 345	−192	−369	Other financial expenses	−2 347	−193	−375
−592	94	−402	Net financial items	−590	94	−406
−12 239	−14 152	−29 170	Operating result before tax	−12 383	−14 234	−29 311
−2 693	−3 113	−6 416	Tax on ordinary result	−2 724	−3 131	−6 448
−9 546	−11 039	−22 753	Operating result after tax	−9 659	−11 102	−22 864
−9 546	−11 039	−22 753	Net profit or loss	−9 659	−11 102	−22 864
			Attributable to
−9 546	−11 039	−22 753	Loss brought forward	−9 659	−11 102	−22 864
−9 546	−11 039	−22 753	Net brought forward	−9 659	−11 102	−22 864

Parent				Numbers in 1 000 NOK (Note)			Group
	H1 2024 Unaudited	H1 2023 Unaudited	2023 Audited	Balance pr 30.06	H1 2024 Unaudited	H1 2023 Unaudited	2023 Audited
				Assets
				Fixed assets
				Intangible fixed assets
	56 183	52 605	54 039	Research and development (2)	56 183	52 605	54 039
	1 562	1 612	1 587	Concessions, patents, licences, trademarks, etc. (2)	1 562	1 612	1 587
	37 107	31 112	34 415	Deferred tax asset	37 173	31 133	34 449
	94 853	85 328	90 040	Total intangible assets	94 919	94 919	90 075
				Tangible fixed assets
	1 964	521	2 426	Lease right of use (3)	1 964	521	2 426
	125 2 090	252 773	149 2 575	Equipment and other movables (3) Total tangible fixed assets	125 2 090	252 773	149 2 575
				Financial fixed assets
	30	30	30	Investments in subsidiaries
			95	Loan to group companies
	164		164	Other long-term receivables	164		164
	194	30	189	Total financial fixed assets	164		164
	97 136	86 132	92 904	Total fixed assets	97 172	86 123	92 814
				Current assets
				Debtors
	901		656	Accounts receivables	902		656
	143	128	55	Receivables from group companies
	3 173	1 918	974	Other receivables	3 173	1 918	974
		26	10	Payments to be received from owners		26	10
	4 218	2 071	1 695	Total debtors	4 075	1 944	1 640
				Investments
	11 959	12 285	8 763	Other financial instruments (4)	11 959	12 285	8 763
	11 959 7 825 678	12 285	8 763 758 472	Total investments Total investments	11 959	12 285	7 825 678 8 763
				Cash and deposits
	946	144	399	Cash and own deposits	946	159	399
	19 921	19 680	16 899	Customers deposits (5)	19 921	19 680	16 899
	20 867	19 824	17 298	Total cash and deposits	20 867	19 838	17 298
	37 044	34 180	27 756	Total current assets	36 901	34 067	27 701
	134 180	120 311	120 660	Total assets	134 073	120 190	120 515

Parent			Numbers in 1 000 NOK (Note)				Group
H1 2024 Unaudited	H1 2023 Unaudited	2023 Audited	Balance pr 30.06	H1 2024	Unaudited	H1 2023 Unaudited	2023 Audited
			Equity and liabilities
			Equity
			Paid-in capital
82 226	54 596	54 596	Share capital (6, 7)		82 226	54 596	54 596
107 195	106 563	106 563	Share premium reserve		107 195	106 563	106 563
−2 706	−2 706	−2 706	Restricted equity		-2 706	-2 706	-2 706
186 716	158 454	158 454	Total restricted equity		186 716	158 454	158 454
			Retained earnings
−115 230	−107 619	−119 333	Loss brought forward	−115 465		−107 694 −119 455
−115 230	−107 619	−119 333	Total retained earnings	−115 465		−107 694 −119 455
71 485	50 835	39 120	Total equity		71 251	50 760	38 999
			Liabilities
			Other long-term liabilities
2 005	546	2 449	Leasing obligations		2 005	546	2 449
2 005	546	2 449	Total of other long term liabilities		2 005	546	2 449
2 005	546	2 449	Total long-term liabilities		2 005	546	2 449
			Current liabilities
19 637	29 466	41 750	Convertible debt		19 637	29 466	41 750
	74		Liabilities to financial institutions			74
3 717	2 762	3 824	Trade creditors		3 818	2 774	3 735
1 555	1 771	1 597	Public duties payable		1 582	1 794	1 661
16 540	15 231	13 812	Other short term liabilities		16 540	15 150	13 812
19 240	19 626	18 109	Customers funds (5)		19 240	19 626	18 109
60 689	68 930	79 091	Total short term liabilities		60 817	68 884	79 067
62 695	69 477	81 540	Total liabilities		62 822	69 430	81 516

Parent			Numbers in 1 000 NOK (Note)			Group
H1 2024 Unaudited	H1 2023 Unaudited	2023 Audited	Statement of cash flows	H1 2024 Unaudited	H1 2023 Unaudited	2023 Audited
			Cash flows from operating activities
−12 239	−14 152	−29 170	Profit/loss before tax	−12 383	−14 234	−29 311
1 575	1 919	3 819	Ordinary depreciation	1 575	1 919	3 819
	−87	−136	Impairment of fixed assets		−87	−136
−246	−397	87	Change in accounts receivable	−84	−397	87
−107	1 481	2 543	Change in accounts payable	−80	1 483	2 444
−3 196	−199	3 323	Items classified as investment or financing activities	−3 196	−199	3 323
1 876	3 100	−1 355	Change in other accrual items	1 831	3 009	−1 300
−12 337	−8 337	−20 889	Net cash flows from operating activities	−12 338	−8 508	−21 074
			Cash flows from investment activities
			Proceeds from the sale of fixed assets
3 448	3 983	6 718	Payments for the purchase of fixed assets	3 448	3 983	6 718
			Payments for the purchase of shares and participations in other companies
−3 448	−3 983	−6 718	Net cash flows from investment activities	−3 448	−3 983	−6 718
			Cash flows from financing activities
7 510	11 916	24 200	Proceeds from the issuance of new current liabilities	7 510	11 916	24 200

−444	−552		Payments from the repayment of long-term liabilities		−552
−29 623			Payments from the repayment of current liabilities	−29 623
		−74	Net change in bank overdraft			−74
41 911			Proceeds from issuance of shares	41 911
19 355	11 364	24 126	Net cash flows from financing activities	19 355	11 364	24 126
3 569	−955	−3 481	Net change in cash and cash equivalents	3 569	−1 127	−3 667
17 298	20 779	20 779	Cash and cash equivalents at the start of the period	17 298	20 965	20 965
20 867	19 824	17 298	Cash and cash equivalents at the end of the period	20 867	19 838	17 298
			Restricted bank deposits

			Restricted bank deposits
20 867	19 823	17 298	Net liquidity at 31.12	20 867	19 838	17 298

Notes

Statement of changes in equity capital Statement of changes in equity capital

Group (1000 NOK)	Share capital	Share premium reserve	Other paid in capital	Uncovered loss	Total equity capital
Equity at 01.01.24	54 596	106 563	-2 706	-119 455	38 998
Capital reduction	-13 649			13 649	0
Capital increase	41 279	632			41 912
Result of the year	0	0		-9 659	-9 659
Equity at 31.12.24	82 226	107 195	-2 706	-115 465	71 251

Parent

(1000 NOK)

Equity at 01.01.24	54 596	106 563	-2 706	-119 333	39 120
Capital reduction	-13 649			13 649	0
Capital increase	41 279	632	0	0	41 911
Result of the year	0	0	0	-9 546	-9 546
Equity at 30.06.24	82 226	107 195	-2 706	-115 230	71 485

Note 1 - Accounting principles

The interim accounts have been prepared in conformity with the provisions of the IAS 34 Interim Financial Reporting (IFRS).

Consolidation

The group accounts include Norwegian Block Exchange AS and companies where Norwegian Block Exchange AS has a controlling influence. Controlling influence is normally achieved when the group owns more than 50% of the shares in the company and the group is in a position to exercise actual control over the company. Minority interests are included in the group's equity. Transactions and receivables between companies in the group have been eliminated. The group accounts have been prepared applying uniform principles, in that the subsidiary follows the same accounting principles as the parent company.

The purchase method is used when accounting for business mergers. Companies that are bought or sold during the year are included in the group accounts from the time control is obtained until control ceases.

Associated companies are entities over which the group has significant but not controlling influence over financial and operational management (normally with ownership between 20 and 50 %). The group accounts include the group's share of the result from associated companies posted using the equity method from the time that significant influence is obtained until such influence ceases.

When the group's share of a loss exceeds the investment in an associated company, the group's capitalised value is reduced to 0 and further losses are not posted to the profit and loss account unless the group has an obligation to cover this loss.

Use of estimates

In the preparation of the annual accounts estimates and assumptions have been made that have affected the profit and loss account and the valuation of assets and liabilities, and uncertain assets and liabilities on the balance sheet date in accordance with generally accepted accounting practice. Areas which to a large extent contain such subjective evaluations, a high degree of complexity, or areas where the assumptions and estimates are material for the annual accounts, are described in the notes.

Foreign currency

Foreign currency transactions are translated at the exchange rate on the date of the transaction. Monetary foreign currency items are translated to NOK at the exchange rate on the balance sheet date. Nonmonetary items that are measured at historical cost in a foreign currency are translated to NOK using the exchange rate on the transaction date. Non-monetary items that are measured at fair value in a foreign currency are translated to NOK using the exchange rate on the measurement date. Exchange rate fluctuations are posted to the profit and loss account as they arise under other financial items.

Revenues

Income from the sale of goods is recognised on the date of delivery. Services are posted as income as they are delivered. Income from the sale of services and long-term manufacturing projects (construction contracts) are posted to the profit and loss account in line with the project's degree of completion, when the outcome of the transaction can be estimated in a reliable manner. When the transaction's outcome cannot be estimated reliably, only income corresponding to a projects' incurred costs can be posted as revenue. At the time when it is identified that the project will give a negative result, the estimated loss on the contract is posted in full to the profit and loss account.

Tax

The tax charge in the profit and loss account consists of tax payable for the period and the change in deferred tax. Deferred tax is calculated at the tax rate at 22 % on the basis of tax-reducing and taxincreasing temporary differences that exist between accounting and tax values, and the tax loss carried forward at the end of the accounting year. Tax-increasing and tax-reducing temporary differences that reverse or may reverse in the same period are set off and entered net. The net deferred tax receivable is entered on the balance sheet to the extent that it is likely that it can be utilised.

Leasing

A difference is made between financial and operational leasing. Plant and equipment financed through financial leasing is accounted for under Property, plant and equipment. The counter entry is made under long-term debt. The lease payment is divided between the interest cost and instalments on the debt.

Operational leasing is expensed as an operating cost based on the invoiced lease rent.

Classification and valuation of current assets

Current assets and short-term liabilities consist normally of items that fall due for payment within one year of the balance sheet date, as well as items related to the stock cycle. Current assets are valued at the lower of acquisition cost and fair value. Short-term liabilities are entered on the balance sheet at the nominal amount at the time of the transaction.

Research and development

Expenses on research and development are capitalised to the extent one cannot identify a future economic benefit related to the development of an identifiable intangible asset and where the acquisition cost can be measured reliably. In the opposite case such costs are expensed as incurred. Capitalised research and development is depreciated on a straight line basis over its economic lifetime.

Subsidiaries and associated companies

Subsidiaries and associated companies are valued using the cost method in the company accounts. The investment is valued at acquisition cost for the shares unless a write-down has been necessary. A writedown to fair value is made when a fall in value is due to reasons that cannot be expected to be temporary and such write-down must be considered as necessary in accordance with good accounting practice. Write- downs are reversed when the basis for the write-down is no longer present.

Dividends, group contributions and other distributions from subsidiaries are posted to income in the same year as provided for in the distributor's accounts. To the extent that dividends/ group contributions exceed the share of profits earned after the date of acquisition, the excess amounts represents a repayment of invested capital, and distributions are deducted from the investment's value in the balance sheet of the parent company.

Receivables

Receivables from customers and other receivables are entered at par value after deducting a provision for expected losses. The provision for losses is made on the basis of an individual assessment of the respective receivables. In addition an unspecified provision is made to cover expected losses on claims in respect of customer receivables.

Short-term investments

Short-term investments (shares and interests valued as current assets) are valued at the lower of acquisition cost and fair value on the balance sheet date. Dividends and other distributions received from the companies are posted to income under other financial income.

Cash flow statement

The cash flow statement has been prepared using the indirect method. Cash and cash equivalents consist of cash, bank deposits and other short-term, liquid investments.

Note 2 - Intangible assets

(1000 NOK)	IPR	Development	Domains	Total
Balance at January 1st 2024	100	61 167	1 562	62 829
Additions		3 448	0	3 448
Balance at June 30th 2024	100	64 615	1 562	66 277
Acc. amortization at January 1st 2024	75	7 129	0	7 204
Amortization	25	1 303	0	1 328
Acc. amortization at June 30th 2024	100	8 432	0	8 532
Balance at June 30th 2024	0	56 183	1 562	57 745
Economic life	2 years	10-20 years	Unlimited
Depreciation method	Linear	None	None
Changes	Yes	Yes	No

Development

Costs associated with a development project are recognized in the balance sheet and relate to several projects.The project is still under development as of June 30th 2024 and has been used by the company. Write-downs and depreciation have been made according to the best estimate of future value.

Domains

The domains were acquired in 2018 through external resellers and are assessed on June 30th 2024 at market value. The domains were acquired in regards with the development project, and as of June 30th 2024 are in use for the business. There are also no indications of impairment.

Note 3 - Property, plant and equipment

(1000 NOK)	Art	Lease right of use	Equipment	Office equipment	Total
Balance at January 1st 2024	45	5 055	241	920	6 261
Additions			0	0	0
Disposals	0	-2 679	0	0	-2 679
Balance at June 30th 2024	45	2 376	241	920	3 582
Acc. depreciation at January 1st 2024	0	2 628	155	902	3 685
Additions	0		0	0	0
Disposal	0	-2 439	0	0	-2 439
Depreciation and amortization	0	223	23	0	246
Impairment	0	0	0	0	0
Acc. depreciation at June 30th 2024	0	412	178	902	1 492
Balance at June 30th 2024	45	1 964	63	18	2 090

Economic life	Indefinite	3-5years	5 years	3 years
Depreciation method	None	Linear	Linear	Linear
Changes	No	No	No	No

The liability related to the lease is booked at TNOK 2 005.

Note 4 - Crypto currencies and other financial instruments

(1000 NOK)	H1 2024	H1 2023
FIAT currency (NOK, SEK, DKK, EUR, USD)	11 823	11 924
Crypto currency (BTH, ETH, ADA, LINK, MATIC, UNI, CGT, USDC)	136	361
Total	11 959	12 285

Norwegian Block Exchange AS is holding cryptocurrency as working capital, and to ensure liquidity and a healthy market environment on the exchange. NBX Capital AS is sourced with the task of managing the funds directed towards market making on the platform.

Note 5 - Customer deposits and funds

Customers deposits in bank consist of deposits on the NBX exchange. Customers use the deposits to trade crypto currencies on the crypto exchange. Customers' funds are booked under current liabilities.

(1000 NOK)		H1 2024	H1 2023
Bank - customers deposits	NOK	19 921	19 680
Booked customers funds	NOK	19 240	19 626

Customers deposits are separated from the company's own bank deposits. The deposits are treated based on the same principles as used for client funds, but are not client funds by law.

Difference in client account is linked to the payment model a suplier has, which NBX utilizes to receive transactions from customers. They have a model that deducts transactions cost for their service from customer funds they received on behalf of NBX, before transfering the rest to the respectable bank account NBX owns. NBX is now entered into a new agreement with another supplier which has better model in order to eliminate such inconvenience.

Note 6 - Share option program

The company has a share option program covering certain employees. As at 30.06.2024, 19 employees were included in the option program.

The options granted has a 3 (three) year vesting period after the date of the grant, and a following 4-year exercise period. After the exercise period is closed, the options are void. The options are dependent on employment, and are only exercisable as long as person is still employed.

	2024	2023
Outstanding options 01.01	2 072 290	1 538 421
Options granted	0	0
Options forfeited	-130 428	-48 435
Options exercised	0	0
Options expired	0	0
Outstanding options 30.06	1 941 862	1 489 986

Note 7 - Shareholders

The share capital in Norwegian Block Exchange AS as of 30.06 consist of:

	Total	Face value	Entered
Ordinary shares	137 042 921	0,6	82 225 753
Sum	137 042 921	0,6	82 225 753

Ownership structure

The larges shareholders in % at period end:

		Ordinary	Ownership interest
OBSERVATORIET INVEST AS	18 719 845		13,66
NYE KM AVIATRIX INVEST AS	15 002 803		10,95
PER ØYAN AS	13 699 661		10,00
VEGARD KRISTIANSEN	13 300 000		9,70
SPAREBANKEN ØST	6 833 964		4,99
SATOSHI AS	5 910 931		4,31
NYE GKB INVEST AS	4 744 835		3,46
DASHA INVEST AS	4 303 305		3,14
GREEN 91 AS	3 725 134		2,72
KISTEFOS INVESTMENT AS	3 685 721		2,69
	89 926 199		65,62
	47 116 722		34,38
	137 042 921		100

Shares and options owned by the Directors of the Board and the General Manager:

Direct ownership	Company	Position	Ordinary
Stig Aleksander Kjos-Mathisen		General Manager	105 450
Anna Helene Kjos-Mathisen		Board member	26 799
Total number of shares			132 249

Indirect ownership

Bjørn Kjos	Observatoriet Invest AS	Board member	6 083 950
Stig Aleksander Kjos-Mathiesen	Sam Eiendomspartner AS	General Manager	911 763
Anna Helene Kjos-Mathisen	Nye KM Aviatrix Invest AS	Board member	15 002 803
Anna Helene Kjos-Mathisen	Observatoriet Invest AS	Board member	4 211 965
Asbjørn Abrahamsen	X Boss AS	Board member	2 512 815
Nils Kristian Sundling	Dasha Invest AS	Chairman of the Board	4 303 305
Total number of shares			33 026 601

Norwegian Block Exchange Arnstein Arnebergs Vei 30, 1366 Lysaker, Norway