Crypto-Blockchain Industries SA

Earnings Release • Dec 26, 2023

Results of the First Half of 2023-2024 (ended September 30, 2023)

• Half-year results to September 30, 2023 in line with Group expectations, with recurring operating income at 20% of sales
• Significant revaluation of the crypto-currency portfolio since October 1, 2023, validating their long-term holding and CBI's strategic positioning
• CBI shares offer investors the opportunity to invest indirectly in bitcoin and other major crypto-currencies
• Continued development of the AlphaVerse digital world and acquisition of numerous stakes in third-party projects by way of exchange.

CRYPTO BLOCKCHAIN INDUSTRIES ("CBI", Euronext Growth Paris: FR00140062P9 - ALCBI) announces its consolidated results for the first half of the 2023-2024 financial year, ended September 30, 2023. The results were approved by the Board of Directors on December 21, 2023. These results have been subject to a limited review by the statutory auditors. CBI announces that it has made available to the public on its website the consolidated half-year financial report to September 30, 2023 and the related limited review report by the statutory auditors.

Frédéric Chesnais, Chairman and CEO, commented: "With AlphaVerse, our aim is to create a digital world that federates communities and develops a profitable business. But AlphaVerse's interest is twofold, as it also enables us to take stakes in third-party projects, through the exchange of digital assets, and to increase our economic weight in the blockchain ecosystem."

CBI: Consolidated half-year results to September 30, 2023 in line with Group expectations, with recurring operating income at 20% of sales

Key half-year figures to September 30, 2023 are as follows.

A detailed presentation of the financial statements is given below.

As indicated in Appendix 1, a very significant revaluation of the crypto-currency portfolio has occurred on the markets since October 1, 2023. As a result, the value of the portfolio stood at US\$146.2 million on December 18, 2023.

If the interim consolidated financial statements had been prepared as at September 30, 2023, based on the share price on December 18, 2023, all provisions for token impairment recognized at September 30, 2023 would have been reversed, resulting in a reversal of the accounting provision of 2.1 million euros.

In addition, operating income and net income would have been positive.

in € '000	September 30, 2023 published Reversal of provisions (*) September 30, 2023 adjusted
EBITDA	331,1)	2 060,	729,0
Net income	724.1)	2 060.	1 336.0

(*) Reversal of provisions resulting from the revaluation of crypto-currencies, calculated as at December 18, 2023.

Very significant appreciation of the crypto-currency portfolio since October 1er 2023, validating their long-term holding and CBI's strategic positioning

● The CBI share gives investors an opportunity to invest indirectly in bitcoin and the main crypto-currencies over the long term.

Indeed, in addition to the development of AlphaVerse, CBI's strategy is to acquire, manage and enhance, over the long term, a large portfolio combining the main crypto-currencies (notably Bitcoin), tokens issued by major projects currently under development, as well as tokens created by CBI. CBI's strategy is not to develop active trading on its entire portfolio.

● Thanks to AlphaVerse, CBI is also able to negotiate and complete exclusive OTC transactions.

For example:

• CBI was able to acquire 54 million Chain Games tokens through an exchange. Chain Games operates a Play-to-Earn games business;
• CBI holds a 1% stake in the company that manages the Cornucopias project, a digital world on the Cardano blockchain, and is in the process of acquiring by way of exchange around 0.75% of the COPI tokens issued by this project, thus combining long-term exposure of around 1.75% on a project valued at over US\$400 million;
• CBI holds 26.5% of the as yet unlisted KTG token issued by the Karma The Game project, a blockchain game ;
• CBI holds 6,250,000,000 LIGHTS tokens, not yet listed, and linked to the Horyou AlphaVerse world, which focuses on charities and the fight against global warming.
  • The token portfolio table is shown in Appendix 1.

According to this analysis :

• At December 18, 2023, the total value of tokens in the portfolio and other assets was €146.3 million;
• At September 30, 2023, the net book value of tokens in portfolio and other assets was 1.8 million euros, as unrealized capital gains are not recorded in the accounts.

Highlights of the 1st half-year of the 2023-2024 financial year

1. \$FAV token quotation

CBI listed the \$FAV token on the centralized Chiliz Exchange platform on September 26, 2023. The \$FAV token is also available on the decentralized PancakeSwap platform. As of October 2, 2023, the capitalization of the \$FAV token is approximately 135 million euros. CBI holds 80% of the \$FAV tokens.

2. Conclusion of new partnership agreements with soccer clubs

CBI is continuing its strategy of integrating numerous soccer clubs into its "Football at AlphaVerse" (FAV) universe, and has signed partnerships with European clubs such as Norwich, Braga, FC Porto and Celta de Vigo. These partnerships are in addition to those already signed with Real Betis, Real Sociedad, Sāo Paulo FC, Bologna, Cardiff, Spezia and Deportivo Cali.

3. Implementation of several agreements with Africarare

• On September 16, 2023, CBI signed a first exchange agreement with Africarare for \$1 million and \$FAV tokens for \$155K. Africarare gives all its partners privileged access to the AlphaVerse land acquired by Africarare;
• A second reciprocal agreement has been signed. The agreement includes an exchange of land. CBI and Africarare will be able to develop the land in cooperation with their own partners, or sell it. Thus, CBI/AlphaVerse and its partners will be able to use Africarare's land immediately to develop new experiments. The same applies to Africarare and its partners in the world developed by CBI/AlphaVerse. Alternatively, CBI and Africarare will be free to sell the land they have acquired should the interest arise.

4. Token exchange with DEGA LABS

On June 7, 2023, CBI entered into a token exchange agreement with DEGA LABS.

Events post September 30, 2023

As of the date of this press release, apart from the revaluation of the crypto-currency portfolio mentioned above, postbalance sheet events are as follows:

1. Soccer at AlphaVerse mobile app to be launched soon with Artificial Intelligence integration

The mobile app is designed to cover soccer worldwide, combining news, live matches, public and private discussion forums and community building. It complements the main Football at AlphaVerse application, with a single access account. Technical submission to distribution platforms will take place by the end of the year, for launch as soon as the necessary approvals have been obtained.

2. The \$CRYS token issued by CBI has been launched and is now listed on the decentralized PancakeSwap exchange.

The \$CRYS token was launched in the last calendar quarter of 2023. The first listing of the \$CRYS token took place on November 21, 2023 by direct listing of a series of tokens on the PancakeSwap exchange platform. The initial price was \$0.50 per \$CRYS token.

3. Creation of CBI subsidiary in Lithuania

CBI has opened a services subsidiary in this country to develop its business.

4. Collaboration with Ready Player Me

This collaboration aims to integrate Ready Player Me's avatar and digital object system into the AlphaVerse digital world, offering an expanded immersive experience. In addition, the digital objects developed by AlphaVerse and approved by Ready Player Me will be usable in all universes adopting Ready Player Me technology, creating additional revenue streams for AlphaVerse.

Interim consolidated financial statements as of September 30, 2023

INCOME STATEMENT

Consolidated revenues

At September 30, 2023, CBI generated consolidated sales of €2,352.7K, mainly from the exchange of tokens. Sales were stable compared with the same period last year.

Consolidated operating income recurring

Gross margin amounted to 99.6% of sales for the period.

For purposes of comparison with other companies in the sector, CBI presents its income statement by function.

Research and development costs

Research and development costs were up 25.9% on the previous year. These costs include the operation of video games and the metaverse. Their evolution depends on the level of new functionalities developed. Classic video games are fully amortized, and there is no additional depreciation. With regard to the metaverse, the value of intellectual property rights is recorded as an asset on the balance sheet and has not been amortized as at September 30, 2023, as this amortization starts as soon as the metaverse opens, scheduled for the 2023-2024 financial year.

Marketing and sales expenses

Consolidated sales and marketing expenses include advertising, mainly through the launch of online campaigns.

Marketing and sales expenses amounted to €988.6K for the period, compared with €667.0K for the previous year, a +48.2% variation.

General and administrative expenses

Consolidated general and administrative expenses for the period mainly reflect management costs, as well as overheads related to the listing of the company's shares on the Euronext Growth market. General and administrative expenses

amounted to €633.6K for the year ended December 31, 2006, compared with €569.3K for the previous year, representing an increase of 11.3%.

Consolidated operating income recurring

Consolidated operating income before non-recurring items amounted to €486.0K for the year, compared with €587.8K for the previous year.

Consolidated operating income

Given the trend in crypto-currency prices, particularly over the first half of the 2023-2024 financial year, an additional provision of €817.0K has been recognized. This provision breaks down into a portfolio provision of €960.0K to adjust the net valuation of the crypto-currency portfolio, which thus stands at €1,233.4K€ at the end of September 2023, and an adjustment to the debt payable in Chain Games tokens, which reduces the portfolio provision by €142.9K.

Consolidated operating loss for the year was €-331.1K, compared with €-655.2K for the previous year, representing a change of +49.5%, due to the temporary impairment of tokens mentioned above.

Consolidated net income (Group share)

Consolidated financial expenses reflect interest paid at the legal rate on the Ker Ventures loan and the restatement of rental income under IFRS 16, while consolidated financial income mainly reflects capital gains recorded by the investment services provider TSAF under the liquidity contract on CBI shares.

Consolidated minority interests represent the amount attributable to the 22.73% owners of OP Productions, LLC and Free Reign East, LLC, and amounted to €22.3K for the period.

No corporate income tax is payable for the period.

Consolidated net income (Group share) came to €-724.1K for the period, compared with a deficit of €692.6K for the previous year, representing a variation of -4.5%.

ASSETS (000's of €)	September 30, 2023	March 31,2023
Intangible assets	16 592,4	13 164,9
Property, plant and equipment	20,7	15.1
Rights of use relating to leases	1 841,6	1 973,1
Non-current financial assets	3 605,7	9 107,5
Non-current assets	22 060,4	24 260,8
Inventories	1 233,4	2 407,0
Trade receivables	2 863,1	935,7
O ther current assets	679,2	301,8
Cash and cash equiv alents	472,1	450,9
Assets held for sale
Cumentassets	5 247,9	4 095,3
To tal a sse ts	27 308,3	28 356,1

EQUITY & LIABILITIES (000's of €)	Sep tember 30, 2023	March 31,2023
Capital stock	25 070,6	25 070.4
Consolidated reserves	(8 928,0)	(4 847,1)
Net income (loss) Group share	(746,3)	1 271,5
Shareholders' equity	15 396,2	21 494,8
Minority interests	239,2	211.4
Provisions for non-current contingencies and losses	121,7
Non-current financial liabilities	4 704.4	2 332,7
Deferred tax liabilities
Long term lease liabilities	1 647,4	1 771.9
O ther non-current lia bilities
Non-currentliabilites	6 473,4	4 104,6
Provisions for current contingencies and losses
Current financial liabilities
Short term lease liabilities	247,3	243,6
Trade payables	4 525,8	2 285,6
Other current liabilities	426,4	15.9
Curent lia bilities	5 199,4	2 545,2
Total equity and liabilities	27 308,3	28 356,1

Consolidated intangible assets

Amounts invested in the development of games and the metaverse are capitalized and amortized from the time they are put into service. In the case of the metaverse, the value of intellectual property rights 5 is recorded as an asset on the balance sheet, and has not been amortized as at September 30, 2023. Amortization will begin when the metaverse is opened, scheduled for the 2023-2024 financial year.

When listed, the portfolio of equities and financial instruments is valued on the basis of a six-month volume-weighted average price (V-WAP).

Financial assets comprise shares in non-consolidated companies, investments in associates, derivatives not qualifying as hedges, deposits and loans, marketable securities, positive cash balances and operating receivables.

Financial assets are classified as "non-current", except for those maturing in less than 12 months at the balance sheet date, which are classified as "current assets" or "cash equivalents" as appropriate.

Financial assets held by the Group are analysed according to the business model and its objectives:

• assets measured at amortized cost (financial assets held to collect contractual cash flows),
• assets measured at fair value: financial assets held for resale, with a view to receiving contractual cash flows.

Classification depends on the nature and purpose of each financial asset, and is determined at initial recognition.

Traditional valuation methods are applied to unlisted securities. At each balance sheet date, investments are valued using standard methods, notably Net Asset Value or Discounted Cash Flows. These valuations give rise, where appropriate, to an impairment loss, which is recognized either in the income statement or as a deduction from shareholders' equity, in accordance with IFRS 9.

The Company's subsidiaries and affiliates are listed below:

	Capital	Shhareholder'sequity (excluding capital % ofcapital held stock)		Book value of shares held		Loansand advances
(000'soft)	stock			Gross	Net	o utstand ing	Lastyear's sales	Lastyear's results	O bservations
Subsidiaries (over 50% owned)
OP Productions, LLC			77.27%	4 075.1	4 075.1	94.3	146.8	75.8	09/2023 accounts
Free Reign East, LLC			77.27%	732.9	732.9				09/2023 accounts

Consolidated inventory of tokens and NFTs

The inventory of tokens is recognized at cost, based on the acquisition price. At the balance sheet date, each cryptocurrency is then valued on the basis of the closing price, to reflect the value of each crypto-currency and the overall portfolio. If the cost price of a crypto-currency exceeds its market value, an impairment loss is recognized in the income statement.

At September 30, 2023, inventory was valued at €1,233.4K.

Consolidated shareholders' equity

Consolidated shareholders' equity, Group share, amounted to €15,396.2 K for the year ended, compared with €21,494.8 K for the previous year.

Changes in consolidated shareholders' equity can be analyzed as follows:

(000's of €)	Number of shares	Capital stock	Other paid in capital	Legal reserve	Re taine d e a mings	Profit (Loss)	Total
Shareholders equity as of March 31,2022	250,704,483	25,070.4	7,117.9		(11,965.0)	1,271.5	21, 494.8
Netincome						(746.3)	(746.3)
Capitalincrease	1,046.0	0.1	1.4				1.5
Expense soffset against additional paid-in capital			(30.0)				(30.0)
March 30, 2023 netincome allocated to reserves					1,271.5	(1,271.5)	0.0
Restatement IA S32					1876		187.6
Share-based paymentsIFRS2					188.0		188.0
Neutralization of treasury shares(IFRS2)					(188.0)		(188.0)
Impairment of equity investments					(5,503.5)		(5,503.5)
Currency transation adjustments/ O thers					(7.8)		(7.8)
Shhareholders'equity as of March 31, 2023	250,705,529	25,070.6	7,089.3		(16,017.2)	(746.3)	15,396.3

Net cash position

At the end of the period, net cash/(debt) is defined as cash and cash equivalents less loans, and calculated as follows:

(000's of €)	September 30, 2023	March 31,2023
Cash and cashequivalents	472.1	450.9
Short-term investments	1
Cash and cash equivalents	472.1	450.9

Changes in the number of shares during the year

The Company's shares have been listed on Euronext Growth Paris since October 26, 2021. The mnemonic is ALCBI.

March 31,2023		250 704 483
09/02/2023	Capital incease	1 046
September 30, 2023		250 705 529

At September 30, 2023, 3,138 warrants had been exercised, giving rise to the creation of 1,046 new shares.

At the date of this document, the breakdown of shareholders holding more than 2% of the capital and voting rights is as follows:

	Number of Shares		Fully Diluted *
	#	%	#	%
Ker Ventures SARL	224 433 629	89,52%	224 433 629	88.80%
Ker Ventures, LLC	3 914 265	1.56%	5 150 354	2,04%
Total F. Chesnais	228 347 894	91,08%	229 583 983	90,84%
Trea sury Sharres	2 096 486	0.84%	2 096 486	0.83%
Free Float	20 261 149	8.08%	21 059 947	8,33%
Tota	250 705 529	100,00%	252 740 416	100,00%

(*) Assuming all outstanding warrants are exercised

At September 30, 2023, the Company's subscribed and fully paid-up capital amounted to €25,070,552.9, divided into 250,705,529 shares with a par value of €0.10 each. The number of voting rights attached to the Company's shares is 248,609,043, as treasury shares do not carry voting rights.

In addition, there are 6,107,799 share subscription warrants (BSA), with 3 BSA entitling their holders to purchase 1 new CBI share at a price of €1.40 by March 31, 2024 at the latest. If all the warrants were exercised, 2,035,933 new shares could be created. The number of CBI shares likely to be in circulation is thus 252,740,416.

Registered shares may carry double voting rights if they have been held for at least two years. As of the date of this document, no shares carry double voting rights.

No other shareholder directly, indirectly or jointly owns 2% or more of the Company's issued capital or voting rights.

Each share carries one vote for each resolution submitted to the shareholders. A double voting right is attached to all existing fully paid-up shares held by the same shareholder for at least two years, as well as to all shares subsequently acquired by the same shareholder through the exercise of the rights attached to these registered shares.

Dividends

The Board of Directors may propose the distribution of dividends to the Company's shareholders up to the total amount of the Company's profit and distributable reserves. Such distributions are made as decided by the Company's shareholders at a general meeting. The Company has not paid any dividends in the last three years.

Disclaimer

The realization of projects, as well as their operating budgets and financing plans, remain fundamentally subject to uncertainties, and failure to realize the underlying assumptions can have a significant impact on the value of assets and liabilities.

About CBI

CRYPTO BLOCKCHAIN INDUSTRIES ("CBI") is a French company that develops, operates and invests in video games, business applications and selective projects related to blockchain, Non-Fungible Tokens ("NFTs") and crypto-currencies. Founded by Frédéric Chesnais, a well-known video game industry entrepreneur and blockchain pioneer, CBI's ambition is to develop and enhance a portfolio of blockchain activities covering various sectors (video games, finance, logistics...) to take advantage of this technology, either through direct exploitation or in partnership. CBI has already made several investments and is currently developing a virtual world (metaverse) AlphaVerse, based on blockchain technology. On August 3, 2022 CBI announced its effective transfer from listing group E1 (private placement) to E2 (public offering) on the Euronext Growth market. For more information, visit www.cbicorp.io.

Contact

CBI Frédéric CHESNAIS CEO fredchesnais@cbicorp.io www.cbicorp.io

Listing Sponsor Atout Capital Rodolphe OSSOLA rodolphe.ossola@atoutcapital.com

Appendix 1 - Status of token portfolio and impact of token revaluation since September 30, 2023

The attached table shows :

• Tokens in the portfolio at September 30, 2023 valued at the closing price on September 30, 2023 ;
• Tokens in the portfolio at September 30, 2023 valued at the closing price on December 18, 2023 ;
• The net book value of these tokens at September 30, 2023.

These tokens were acquired by CBI in various ways (by contribution, exchange (swaps)) or were created by CBI. Some tokens may have been sold or acquired since September 30, 2023. Only the situation at September 30, 2023 has been taken into account.

Closing prices are those published by the CoinGecko or CoinMarketCap websites, as appropriate.

The net book value differs from the valuation based on closing prices:

• The tokens created by the company are valued at production cost and not at market value;
• In accordance with the principle of prudence, unrealized capital gains are not recognized;
• Impairment losses are recognized on certain tokens, depending on the circumstances.

According to this analysis :

• At September 30, 2023, the total value of tokens in the portfolio and other assets was 136,847,128 euros;
• At December 18, 2023, the total value of tokens in the portfolio and other assets was 146,261,035 euros;
• At September 30, 2023, the net book value of tokens in the portfolio and other assets was 1,832,612 euros.

Warning - Please note the following:

• The data in the table are unaudited figures.
• Prices are given as an indication on the date in question, September 30 or December 18, 2023, and are not necessarily representative of the value of the token concerned.
• Given the volatility of share prices, this valuation may fluctuate upwards or downwards.
• Some tokens have very low liquidity, which will have an impact on their effective selling price.
• CBI has signed partnership agreements involving swaps between its \$FAV and \$CRYS tokens and those of its partners. Some of these agreements include lock-up clauses preventing the sale of these tokens before a specified date.
• The amounts mentioned in the table below should not be construed as the realizable value of these tokens. The realizable value of these tokens could differ significantly from the amounts mentioned below.

		(A)	(B)	(C)	(D)	(E)	(F)	(G)
Token		Symbol Quantity on 09/30/2023	Closing price (\$)		Valuation (€)	Valuation (€)	Net book value	Sources
			09/30/2023	12/18/2023	09/30/2023	12/18/2023	09/30/2023
Exchange rate \$/€					1,0594	1,0565
Tokens created by third-party companies
Jeton Atari	ATRI	30 326 489,00	\$0,001	\$0,001	€37 214	060 963	€	CoinGecko
Binance Smart Chain	BNB	1,90	\$215,323	\$241,350	€386	€434	€386	Coinmarketcap
Bitcoin	BTC	21,73	\$27 002,560	\$42 623, 540	€553 908	€876 744	€553 908	Coinmarketcap
Binance USD	BUSD	16 749, 12	\$1,000	\$ 1,000	€15 808	€15 853	€15808	Coinmarketcap
Chain Games	CG	54 095 429,00	\$0,007	\$0,031	€361 038	€1 568 332	€361 038	Coinmarketcap
Blockchain Chiliz	CHZ	376 136,02	\$0,062	\$0,079	€21 913	€28 090	€21913	Coinmarketcap
Jeu Cornucopias *	COP	4 800 001,00	\$0,026	S0, 122	€119 840	€552 920	€119840	Coinmarketcap
Blockchain Ethereum	ETH	31,33	\$1674,808	\$2 217, 270	€49 531	€65 753	€49 531	Coinmarketcap
Jeu Karma The Game	KTG	26 500 000,00	\$0,000	\$0,000	€	€0	€1	Coinm arketcap
Blockchain Polygon	MATIC	567,21	\$0,534	\$0, 800	€286	€430	€286	Coinmarketcap
USDC	USDC	925,03	\$1,000	\$1,000	€873	€876	€873	Coinmarketcap
USDT	USDT	110 774, 73	\$1,000	\$ 1,000	€105 486	€104 851	€105 486	Coinmarketcap
Xave coin	XVC	3 250 000 001,00	\$0,000	SO, 000	€1	€1	್‌ ।	Coinmarketcap
Wrapped Ethereum	WETH	0,88	\$1674,271	\$2 216, 960	€1 396	€1 853	€1 396	Coinmarketcap
Tokens created by CBI
Monde digital AlphaVerse	CRYS	493 760 000,00	\$0,000	\$0, 500	【冰水水	(***	€494	Production costs
Monde digital Football at AlphaVerse	FAV	10 999 851 879,83	\$0,013	\$0,013	€134 980 248	€140 244 207	€1800	Coinmarketcap
Monde digital Horyou	UGHTS	6 520 000 000,00	\$0,000	\$0,000	€	€0	€652	Production costs
		TOKEN PORTFOLIO			€136 247 928	€143 496 435	€1 233 412
Cornucopias **	COPI	24 000 000,00	\$0,026	\$0, 122	€599 200	€2 764 600	€599 200
		OTHER ASSETS			€599 200	€2764 600	€599 200
		TOTAL			€136 847 128	€146261 035	€1 832 612

Column legend

• (A) Corresponds to the number of tokens held by the company at 09/30/2023
• (B) Corresponds to the closing price on 09/30/2023 in dollars of the various tokens. The source of the prices is given in column (G).
• (C) Corresponds to closing price at 12/18/2023 in dollars
• (D) Corresponds to the value of the tokens at 09/30/2023 converted into euros. The valuation is calculated as follows: (B)/1.10594 * (A)
• (E) In the same way as (D), corresponds to token valuation at 12/18/2023 Corresponds to the net book value recorded in the financial statements at 09/30/2023.

Other comments

• (*) Cornucopias tokens in portfolio
• (**) Cornucopias tokens receivable
• (***) CRYS tokens not valued pending registration on CoinGecko or CoinMarketCap

***