Datawalk S.A. — Interim / Quarterly Report 2020

Nov 27, 2020

DATAWALK CAPITAL GROUP SUMMARY OF THE CONDENSED INTERIM FINANCIAL STATEMENTS

for the 9-month period ended September 30, 2020

November 2020

THE EXECUTIVE BOARD`S LETTER

Dear Investors,

The development and expansion of the DataWalk Group in the third quarter of this year was associated with the execution of many parallel and demanding activities. Among the most important ones, it is worth mentioning the sales activities, described in more detail in the paragraph below with the attached data from the sales funnel, the activities aimed at obtaining financing and the growth of teams and infrastructure related to the development of the DataWalk platform and its commercialization. Apart from the obvious recruitment processes, progression of our sales capabilities involved building tools and throughput of individual elements of go-to-market processes. For example, acquiring new sales teams depends on established investment triggers, such as obtaining the appropriate level of invoiced sales in a given period and on average revenue levels per single salesperson, as well as obtaining appropriate efficiency of the process of generating and verifying potential sales leads.

The aforementioned capital activities led to obtaining funds for development through the issue of series O shares in the amount of over PLN 65 million. It's worth adding that the Company acquired a significant investor - funds managed by Nationale-Nederlanden Powszechne Towarzystwo Emerytalne S.A.

During the third quarter, we achieved numerous sales wins, including:

• Sale to the Police Headquarters in Poland, where our platform will serve as the central Police Operational Information System.
• Another example of use of the DataWalk system to analyze and reduce potential COVID-19 threats, this time in one of the US armed forces.
• Sales to other US departments after Department of Justice, including Department of Defense, where our system will investigate potential frauds related to COVID-19 aid financing.
• Cooperation with the United States Department of Homeland Security Customs and Border Protection to support the partner country by implementing the DataWalk platform.

As of today, the go-to-market processes in the DataWalk Group are conducted by six sales teams - three in America and Poland. The fourth quarter is a traditional period of focusing on sales closures.

Yours faithfully,

Paweł Wieczyński, CEO

Sales funnel methodology and definitions of the stages of the sales process. Quantifiers of our Sales Funnel.

Stages of the Sales:

• 1. Establishing contact with a prospect (including through our own campaigns or first business partners).
• 1. Identification of the situation this stage ends when we established contact with the appropriate representatives at the client.
• 1. Validation of customer needs and initial verification of the opportunity.
• 1. Full Qualification of the opportunity.
• 1. Engagement with the full client project team (including decision-makers and senior management) in substantive discussions. Example: a pilot implementation may take place during this phase.
• 1. Purchase negotiations and procedures (initiation of a public tender procedure if applicable).
• 1. Finalization of the terms of the contract and award of the tender.
• 1. Execution of implementation, acceptance protocols authorizing the issuing of invoices for licenses and individual stages of implementation.

The categorization of a potential customer as a Qualified Lead (Stage 4) occurs only when the customer confirms the readiness to purchase and has an approved budget, a staffed project team to execute the selection process and the will to continue discussions with us.

The values presented below do not include projects that have left the sales funnel due to the conversion of projects into Completed Sales (conclusion of a contract, obtaining an acceptance protocol, recognition of all or a major part in revenues). Thus, the fragment of the sales funnel presented below (stages 4-7 of the commercial process) constitute an overview for understanding sales dynamics in the average period of several quarters.

In the reporting period, the sales funnel was supplied with many new leads, but also converted to sales to a greater extent. For example, the qualified part of the sales funnel run by the Polish team grew again thanks to the initiation of new commercial activities and the maturing of some newer leads. In the third quarter, some of these items were recognized in revenues and we are currently working on invoicing more of them in the fourth quarter. As a result of the above, a decrease in this part of the funnel might be observed in the future.

In November we hired a third salesperson for the American team and we are recruiting for the implementation teams in Poland and North America - these people will directly participate in sales processes, pre-sales and implementations, contributing to the acquisition of new leads and their conversion to revenue.

Sales funnel aggregate [thousands of USD]

Source: Issuer.

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 488.604,80 zł w całości wpłacony

Sales cycles counted from qualification of the lead can range on average from 18 months for the commercial sector 30 months in the public sector, but off course there are examples that are shorter or longer.

Given the "New Vendor" market position of the DataWalk Group, only a portion of leads will be converted into contracts, especially in North America where we have fewer production customers to date than we have in Poland and we are not a recognizable brand with a track record. Over time, we will be able to increase our close rate, especially after we gain more customers in the most advanced markets in the world. The data presented below cannot be considered a forecast of the future results of DataWalk S.A. and its capital group because there is great variability in deal values, win rates as well as the impacts of cancelled projects and other variables.

The figures above represent the sum of the values of Leads based on the Stage of the Sales Funnel, not including the remaining part of the sales funnel, which contains less advanced processes. The values of individual Leads are calculated on the basis of declarations about the size of the budget and the estimated size of the sales opportunity.

The sales funnel in Poland started being built in late 2015, results began to materialize with the acquisition of the first few contracts including TUiR Warta (2017) and the Ministry of Finance (2018). After these successful implementations resulted in very positive customer testimonials, we started to see more opportunities in the EMEA region. The sales funnel in the Americas started being built in the second quarter of 2019 with the hiring of the first two sales teams and although it is less mature in terms of time, it will address a much larger available market.

The table of contents

SELECTED CONSOLIDATED FINANCIAL DATA OF THE DATAWALK CAPITAL GROUP 6
SELECTED SEPARATE FINANCIAL DATA DATAWALK S.A. 7
CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENT FOR THE FIRST THREE QUARTERS OF 2020 10
Consolidated Condensed Interim Statement of Financial Position (in thousands of PLN) 10 Consolidated Condensed Interim Profit and Loss Account with The Statement of Comprehensive Income (in thousands of PLN) 12
Consolidated Condensed Interim Statement of Changes in Equity (in thousands of PLN) 14 Consolidated Condensed Interim Cash Flow Statement (in thousands of PLN) 15
SUMMARY AND ANALYSIS OF THE FINANCIAL RESULTS OF THE DATAWALK CAPITAL GROUP FOR THE FIRST THREE QUARTERS OF 2020 17
IMPACT OF THE COVID-19 EPIDEMIC ON THE GROUP'S OPERATIONS 21
DESCRIPTION OF MAJOR ACHIEVEMENTS OR FAILURES OF THE CAPITAL GROUP IN THE REPORTING PERIOD 21
SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE AFFECTING THE GROUP'S OPERATIONS 24
FACTORS LIKELY TO AFFECT, IN THE OPINION OF DATAWALK S.A., THE RESULTS GENERATED BY THE CAPITAL GROUP IN THE NEXT QUARTER AND THEREAFTER 24
OTHER INFORMATION RELEVANT FOR ASSESSING THE HR, PROPERTY AND FINANCIAL STANDING AND THE FINANCIAL RESULT OF THE DATAWALK CAPITAL GROUP 25
COMPANY'S AUTHORITIES 25
The Executive Board 25 The Supervisory Board 26
DESCRIPTION OF THE ORGANISATION OF THE DATAWALK CAPITAL GROUP AND CONSOLIDATED ENTITIES 27
DataWalk S.A. 27 DataWalk Inc. 28 Overview of the DataWalk Capital Group 29 Changes in the management rules of the Capital Group and the Company 29
THE SHAREHOLDING STRUCTURE OF THE DATAWALK S.A 30
Shareholder structure as at November 26, 2020 (share in the total number of votes) 30 Shareholder structure as at September 30, 2020 (share in the total number of votes) 31
STRUCTURE OF SHAREHOLDINGS IN DATAWALK S.A. OR RIGHTS ATTACHED TO SHARES, HELD BY MEMBERS OF THE ISSUER'S EXECUTIVE AND SUPERVISORY BOARDS 32
SEPARATE CONDENSED INTERIM FINANCIAL STATEMENT THE FIRST THREE QUARTERS OF 202034
Separate Condensed Interim Statement of Financial Position (in thousands of PLN) 34 Separate Condensed Interim Profit and Loss Account with The Statement of Comprehensive Income (in thousands of PLN) 36
Separate Condensed Interim Statement of Changes in Equity (in thousands of PLN) 38 Separate Condensed Interim Cash Flow Statement (in thousands of PLN) 39

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

SELECTED CONSOLIDATED FINANCIAL DATA OF THE DATAWALK CAPITAL GROUP

The following table presents selected data regarding the consolidated financial statements of the DataWalk Capital Group.

SELECTED FINANCIAL DATA	from 01/01/2020 to 09/30/2020	from 01/01/2019 to 09/30/2019	from 01/01/2020 to 09/30/2020	from 01/01/2019 to 09/30/2019
	in thousands of PLN	in thousands of PLN	in thousands of EUR	in thousands of EUR
Revenues from sales	8 939	1 875	2 012	435
Profit/Loss on sales	-6 415	-8 359	-1 444	-1 940
Operating profit (loss)	-6 105	-10 440	-1 374	-2 423
Pre-tax profit (loss)	-6 015	-10 394	-1 354	-2 412
Net profit (loss)	-6 137	-10 397	-1 382	-2 413
Total comprehensive income	-6 133	-10 343	-1 381	-2 401
Weighted average number of ordinary shares (pcs.)	4 465 048	4 030 784	4 465 048	4 030 784
Profit (loss) per share (in PLN/EUR)	-1,37	-2,58	-0,31	-0,60
Net cash generated (used) in operating activities	-5 321	-7 788	-1 198	-1 808
Net cash generated (used) in investing activities	689	-1 887	155	-438
Net cash (used) in financing activities	876	10 041	197	2 330
Total net cash flows	-3 756	366	-846	85

SELECTED FINANCIAL DATA	09/30/2020	12/31/2019	09/30/2020	12/31/2019
	in thousands of PLN	in thousands of PLN	in thousands of EUR	in thousands of EUR
Total assets / equity and liabilities	22 370	23 858	4 942	5 603
Non-current assets	9 058	6 598	2 001	1 549
Current assets	13 312	17 260	2 941	4 053
Equity	14 833	20 966	3 277	4 923
Total liabilities	7 538	2 892	1 665	679
Long-term liabilities	1 382	153	305	36
Short-term liabilities	6 156	2 740	1 360	643

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 488.604,80 zł w całości wpłacony

SELECTED SEPARATE FINANCIAL DATA DATAWALK S.A.

The following table presents selected data on the separate financial statements DataWalk SA

SELECTED FINANCIAL DATA	from 01/01/2020 to 09/30/2020	from 01/01/2019 to 09/30/2019	from 01/01/2020 to 09/30/2020	from 01/01/2019 to 09/30/2019
	in thousands of PLN	in thousands of PLN	in thousands of EUR	in thousands of EUR
Revenues from sales	6 783	1 875	1 527	435
Profit/Loss on sales	-1 437	-8 514	-324	-1 976
Operating profit (loss)	-4 622	-10 557	-1 041	-2 450
Pre-tax profit (loss)	-4 676	-10 474	-1 053	-2 431
Net profit (loss)	-4 676	-10 474	-1 053	-2 431
Total comprehensive income	-4 676	-10 474	-1 053	-2 431
Weighted average number of ordinary shares (pcs.)	4 465 048	4 030 784	4 465 048	4 030 784
Profit (loss) per share (in PLN/EUR)	-1,05	-2,60	-0,24	-0,60
Net cash generated (used) in operating activities	-1 511	-7 798	-340	-1 810
Net cash generated (used) in investing activities	-3 085	-1 880	-695	-436
Net cash (used) in financing activities	-351	10 041	-79	2 330
Total net cash flows	-4 948	363	-1 114	84

SELECTED FINANCIAL DATA	09/30/2020	12/31/2019	09/30/2020	12/31/2019
	in thousands of PLN	in thousands of PLN	in thousands of EUR	in thousands of EUR
Total assets / equity and liabilities	20 522	22 988	4 534	5 398
Non-current assets	10 372	7 776	2 291	1 826
Current assets	10 150	15 212	2 242	3 572
Equity	15 963	20 638	3 526	4 846
Total liabilities	4 560	2 350	1 007	552
Long-term liabilities	44	153	10	36
Short-term liabilities	4 515	2 197	997	516

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 488.604,80 zł w całości wpłacony

Applied EUR / PLN rates:

• Items of the statement of financial position were translated at the average rate of the euro published by the Polish National Bank, valid on the last day of the reporting period.

Rate on the last day of the period	09/30/2020	12/31/2019
1 EUR	4,5268	4,2585

• Items in the statement of profit or loss and other comprehensive income and statement of cash flows were translated at the average rate of the euro which is the arithmetic average of euro exchange rates published by Polish National Bank and valid on the last day of each month of the reporting period.

The average exchange rate in a given period	from 01/01/2020 to 09/30/2020	from 01/01/2019 to 09/30/2019
1 EUR	4,4420	4,3086

Page | 9

DATAWALK CAPITAL GROUP CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENT

for the period of 9 months ended 30 September 2020

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247

Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 446.504,80 zł w całości wpłacony

CONSOLIDA TED COND ENSED IN TERIM FINANCIA L STA TEM ENT FOR THE FIR ST THR EE QUAR TER S OF 2020

Consolidated Condensed Interim Statement of Financial Position (in thousands of PLN)

	ASSETS		09/30/2020	12/31/2019
A.	Non-current assets		9 058	6 598
	I.	Fixed assets	214	106
	II.	Intangible assets	8 527	5 863
	III.	Right-of-use assets	265	577
	IV.	Long-term financial assets	0	0
	V.	Long-term receivables	41	41
	VI.	Deferred tax assets	11	11
	VII.	Long-term prepayments	0	0
B.	Current assets		13 312	17 260
	I.	Inventory	0	0
	II.	Trade receivables	7 361	3 074
	III.	Receivables from income tax	0	0
	IV.	Other receivables	337	826
	V.	Financial assets	0	4 011
	VI.	Prepayments	249	225
	VII.	Cash and cash equivalents	5 365	9 125
	TOTAL ASSETS		22 370	23 858

		EQUITY AND LIABILITIES	09/30/2020	12/31/2019
A.	Equity		14 833	20 966
	I.	Share capital	447	447
	II.	Other capitals	78 746	78 746
	III.	Profit (loss) from previous years	-60 998	-49 953
	IV.	Net profit (loss) for the current period	-6 137	-11 044
	V.	Reserve capital	2 771	2 771
	VI.	Foreign exchange translation differences	4	0
B.		Long-term liabilities	1 382	153
	I.	Other provisions	0	0
	II.	Deferred tax liabilities	11	11
	III.	Lease liabilities	34	142
	IV.	Bank loans and borrowings	1 224	0
	V.	Other liabilities	114	0
C.		Short-term liabilities	6 156	2 740
	I.	Trade liabilities	880	809
	II.	Income tax liabilities	26	0
	III.	Lease labilities	240	438
	IV.	Bank loans and borrowings	8	0
	V.	Other liabilities	778	374
	VI.	Other provisions	1 086	685
	VII.	Prepayments	3 137	435
		TOTAL EQUITY AND LIABILITIES	22 370	23 858

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 488 604,80 zł w całości wpłacony

NET ASSET VALUE PER SHARE	09/30/2020	12/31/2019
Net asset value	14 833	20 966
Number of shares (pcs.)	4 465 048	4 113 366
Net asset value per share (in PLN)	3,32	5,10
Diluted number of shares (pcs.)	4 554 047	4 202 365
Diluted net asset value per share (in PLN)	3,26	4,99

The net asset value per share was calculated in relation to the weighted average number of the Company's shares for a given period. The number of shares calculated in this way in the first three quarters of 2020 was 4 465 048, while in 2019 the weighted average number of shares in the Company was 4 113 366.

The weighted average diluted number of shares in the Company in the first three quarters of 2020 amounted to 4 554 047, including 88 999 shares under the incentive program, while in 2019 the average amounted to 4 202 365, including 88 999 shares under the incentive program.

Consolidated Condensed Interim Profit and Loss Account with The Statement of Comprehensive Income (in thousands of PLN)

	PROFIT AND LOSS ACCOUNT	01/01/2020 – 09/30/2020	01/01/2019 – 09/30/2019	07/01/2020 – 09/30/2020*	07/01/2019 – 09/30/2019*
A.	Revenues	8 939	1 875	3 823	1 114
B.	Operating costs	15 355	10 234	5 407	3 716
	Materials and energy	98	68	28	24
	Employee benefits	8 025	4 781	2 769	1 692
	Amortisation and depreciation	937	493	313	206
	External services	5 537	4 365	2 047	1 609
	Other costs	757	527	250	186
C.	Profit/Loss on sales	-6 415	-8 359	-1 584	-2 602
	Other operating incomes	385	330	31	88
	Other operating costs	74	2 412	29	848
D.	Operating profit (loss)	-6 105	-10 440	-1 583	-3 362
	Financial incomes	112	49	-97	6
	Financial costs	22	2	9	0
E.	Pre-tax profit (loss)	-6 015	-10 394	-1 689	-3 356
	Income tax	122	3	22	0
	current	122	3	22	0
	deferred	0	0	0	0
F.	Net profit (loss)	-6 137	-10 397	-1 712	-3 356

NET PROFIT (LOSS) ATTRIBUTABLE TO:	01/01/2020 – 09/30/2020	01/01/2019 – 09/30/2019	07/01/2020 – 09/30/2020	07/01/2019 – 09/30/2019
- shareholders of the parent company	-6 137	-10 397	-1 712	-3 356
- non-controlling interests	0	0	0	0

STATEMENT OF COMPREHENSIVE INCOME	01/01/2020 – 09/30/2020	01/01/2019 – 09/30/2019		07/01/2019 – 09/30/2019
Net profit (loss)	-6 137	-10 397	-1 712	-3 356
Other comprehensive income	4	54	-82	60
1. Other comprehensive income, which in the future will be able to be reclassified to the profit or loss	0	0	0	0
2. Other comprehensive income, which will not be able in the future be reclassified to the profit or loss	4	54	-82	60
Total comprehensive income	-6 133	-10 343	-1 794	-3 296

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:	01/01/2020 – 09/30/2020	01/01/2019 – 09/30/2019	07/01/2020 – 09/30/2020	07/01/2019 – 09/30/2019
- shareholders of the parent company	-6 133	-10 343	-1 794	-3 296
- non-controlling interests	0,0	0,0	0,0	0,0

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 488 604,80 zł w całości wpłacony

PROFIT (LOSS) PER SHARE ATTRIBUTABLE TO:	01/01/2020 – 09/30/2020	01/01/2019 – 09/30/2019	07/01/2020 – 09/30/2020	07/01/2019 – 09/30/2019
Number of shares (pcs.)	4 465 048	4 030 784	4 465 048	4 138 048
Profit (loss) per share (in PLN)	-1,37	-2,58	-0,38	-0,81
Diluted number of shares (pcs.)	4 554 047	4 210 784	4 554 047	4 318 048
Diluted profit (loss) per share (in PLN)	-1,35	-2,47	-0,38	-0,78

The net profit (loss) per share was calculated in relation to the weighted average number of the Company's shares for a given period. The number of shares calculated in this way in the first three quarters of 2020 was 4 465 048, while in the first three quarters of 2019 the weighted average number of shares in the Company was 4 030 784.

The weighted average diluted number of shares in the Company in the first three quarters of 2020 amounted to 4 554 047, including 88 999 shares under the incentive program, while in the first three quarters of 2019 the average amounted 4 210 784, including 180 000 shares under the incentive program.

* Data for the 3rd quarter of 2020 were determined by subtracting from the data for the first three quarters of 2020 the data disclosed by the Group in the report for the 1st half of 2020 (reviewed).

* Data for the 3rd quarter of 2019 were determined by subtracting from the data for the first three quarters 2019 the data disclosed by the Group in the report for the 1st half of 2020 (reviewed).

Consolidated Condensed Interim Statement of Changes in Equity (in thousands of PLN)

STATEMENT OF CHANGES IN EQUITY	Share capital	Other capitals	Foreign exchange translation differences	Reserve capital	Profit (loss) from previous years	Net profit (loss) for the current period	Total equity
Balance as at 01/01/2020	447	78 746	0	2 771	-49 953	-11 044	20 966
Change in accounting policy	0	0	0	0	0	0	0
Balance as at 01/01/2020 adjusted	447	78 746	0	2 771	-49 953	-11 044	20 966
Net profit (loss)	0	0	0	0	0	-6 137	-6 137
Foreign exchange translation differences	0	0	4	0	0	0	4
Share capital increase	0	0	0	0	0	0	0
Distribution of profit (loss) for 2019	0	0	0	0	-11 044	11 044	0
Changes in equity resulting from IFRS 2	0	0	0	0	0	0	0
Balance as at 09/30/2020	447	78 746	4	2 771	-60 998	-6 137	14 833

STATEMENT OF CHANGES IN EQUITY	Share capital	Other capitals	Foreign exchange translation differences	Reserve capital	Profit (loss) from previous years	Net profit (loss) for the current period	Total equity
Balance as at 01/01/2019	368	54 783	10	2 803	-36 203	-13 750	8 011
Change in accounting policy	0	0	0	0	0	0	0
Balance as at 01/01/2019 adjusted	368	54 783	10	2 803	-36 203	-13 750	8 011
Net profit (loss)	0	0	0	0	0	-10 397	-10 397
Foreign exchange translation differences	0	0	54	0	0	0	54
Share capital increase	46	9 009	0	0	0	0	9 055
Distribution of profit (loss) for 2018	0	0	0	0	-13 750	13 750	0
Changes in equity resulting from IFRS 2	0	0	0	2 102	0	0	2 102
Balance as at 09/30/2019	414	63 792	64	4 905	-49 953	-10 397	8 825

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 488 604,80 zł w całości wpłacony

CASH FLOW STATEMENT	01/01/2020 – 09/30/2020	01/01/2019 – 09/30/2019
Net cash flows from operating activities
Net profit (loss)	-6 137	-10 397
Total adjustments, including:	887	2 542
- amortisation and depreciation	937	493
- foreign exchange gains (losses)	4	0
- interest and dividends	-55	-44
- profit (loss) on investing activities	1	-10
- other (non-cash cost of the incentive program)	0	2 102
- income tax of current period	122	3
- income tax paid	-122	-3
Net cash flow from operating activities before the change in working capital	-5 250	-7 855
Change in working capital, including:	-71	67
- change in receivables	-3 798	-77
- change in inventories	0	0
- change in liabilities due to employee benefits	175	75
- change in provisions	402	373
- change in short-term liabilities	468	-80
- change in other assets	-21	440
- change in deferred income	2 703	347
- other adjustments (capital increase)	0	-1 011
Net cash generated (used) in operating activities	-5 321	-7 788
Cash flows from investing activities
Proceeds from sale of property, plant, equipment and intangible assets	0	19
Purchases of property, plant and equipment and intangible assets	-3 400	-1 952
Interest	77	46
Short-term bank deposits (over 3 months)	4 011	0
Net cash generated (used) in investing activities	689	-1 887
Cash flows from financing activities
Proceeds from issuance of shares	0	10 066
Proceeds from bank loans and borrowings	1 227	0
Payments of liabilities under finance lease agreements	-334	-23
Interest paid	-17	-2
Net cash (used) in financing activities	876	10 041
Total net cash flows	-3 756	366
Change in cash due to foreign currency translation	-4	0
Opening balance of cash	9 125	2 241
Closing balance of cash	5 365	2 608

Consolidated Condensed Interim Cash Flow Statement (in thousands of PLN)

Page | 16

COMMENTARY AND ADDITIONAL INFORMATION FOR THE QUARTERLY REPORT OF THE DATAWALK CAPITAL GROUP

KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247

Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 488 604,80 zł w całości wpłacony

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

SUMMARY AND ANALYSIS OF THE FINANCIAL RESULTS OF THE DATAWALK CAPITAL GROUP FOR THE FIRST THREE QUARTERS OF 2020

DataWalk Group financial information

The following data were presented in PLN thousand and any differences in the amount of PLN 1 thousand or 1% when added up are a result of the accepted rounding.

DataWalk Group financial results

The investments in our growth are starting to bear fruit in converting projects from the sales funnel into revenue. In the three quarters of 2020, the sales value of the DataWalk Group amounted to PLN 8 939 thousand and was higher by 377% compared to the revenues achieved in the first three quarters of 2019, which were at the level of PLN 1 875 thousand. The increase in sales value results from the successful completion by the DataWalk S.A. and DataWalk Inc. of multiple commercial processes that translated into contracts and the progress of implementation works under contracts implemented by the Group.

Particularly noteworthy is the increase in revenues achieved in the American market, where the value of sales in the first three quarters of 2020 reached the level of PLN 3 101 thousand, while in the comparable period of 2019 there were no revenues generated. The government sector accounted for 97% of North American sales.

The Group also recorded an increase in revenues in other markets (EMEA region). The value of sales in the first three quarters of 2020 amounted to PLN 5 839 thousand, which, compared to PLN 1 875 thousand generated in the comparable period of 2019, represents an increase of 211%. Sales to the government sector were 35%, and the remaining 65% was for the private sector.

The revenue from sales in Poland was PLN 4 742 thousand. In the results for the three quarters of 2020 approx. 78% of the revenue planned in 2020 from the contract with PKN Orlen S.A. (ESPI 4/2020) was recognized. Due to the size of this contract and its specificity, the Issuer decided to provide this information until the third quarter inclusive to enable a better assessment of the Group's financial situation. However, considering the recognition of most of the revenues from this contract planned for the current year and obtaining other contracts with a similar or a greater size, the Issuer will cease to provide these figures in detail as additional information in subsequent periodic reports.

The recorded dynamics of growing revenues is connected with investing in increasing the scale of operations and thus associated with incurring appropriate expenses. The DataWalk Group manages the investment process through triggers related to the achieved business goals and financial models. This approach allows us to control the growth rate of expenses, which is most influenced by the pace of commercialization in North America.

The operating costs of the Group in the first three quarters of 2020 were influenced by: i) an increase in remuneration costs resulting in particular from the process of building the sales and implementation teams in the Issuer's subsidiary; ii) an increase in external services costs in the Issuer's subsidiary, related to the development of operating activities in the USA and conducting sales processes; and iii) higher costs of amortization of completed development works related to DataWalk software and right-of-use assets in the form of office space lease.

The management of the Group expects to further expand operations. Considering the long and complex sales process, the Group will focus on expanding go-to-market teams in America and Europe.

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

The table below presents selected consolidated financial data for the 9-month period ending September 30, 2020 and the comparable period of 2019.

Position	01/01/2020 - 09/30/2020	01/01/2019 - 09/30/2019	Change
Revenues	8 939	1 875	377%
Operating costs	15 355	10 234	50%
Profit/Loss on sales	-6 415	-8 359	-23%
Other operating incomes	385	330	16%
Other operating costs	74	2 412	-97%
Operating profit (loss)	-6 105	-10 440	-42%
Financial incomes	112	49	131%
Financial costs	22	2	856%
Net profit (loss) attributable to shareholders of the parent company	-6 137	-10 397	-41%

Source: Issuer.

In the three quarters of 2019, in the item "Other Operating Costs", the Group recognized non-cash expenses related to the incentive program under IFRS 2 in the amount of PLN 2 102 thousand, representing 87% of the total other operating costs. The program ended on December 31st, 2019. In the first three quarters of 2020, no expenses were from the incentive program.

The table below presents additional selected consolidated financial information for the 9-month period ending September 30, 2020 and the comparable period of 2019.

Position	01/01/2020 - 09/30/2020	01/01/2019 - 09/30/2019	Change
Revenues*	8 939	1 875	377%
EBIT	-6 105	-10 440	-42%
Amortisation and depreciation	937	493	90%
EBITDA	-5 167	-9 947	-48%
Non-cash costs of the incentive program	0	2 102	-100%
Adjusted EBITDA	-5 167	-7 845	-34%
CFObt	-5 321	-7 788	-32%
CAPEX	-3 400	-1 952	74%
FCF	-8 720	-9 740	-10%
Closing balance of cash	5 365	9 125	-41%
Interest debt	1 506	579	160%

Source: Issuer.

* Sales between segments did not occur.

EBIT = Operating profit (loss),

EBITDA = EBIT + Amortisation and depreciation,

Adjusted EBITDA = EBITDA + non-cash transaction costs with people covered by the incentive program settled in the form of capital instruments,

CFObt = Net cash generated (used) in operating activities (i.e. before income tax paid),

CAPEX = expenditure on acquisition of tangible fixed assets + expenses for intangible assets + expenses related to development work,

FCF = CFObt - |CAPEX|.

The revenue structure of the DataWalk Group

In the first three quarters of 2020, revenues from the sale of licenses amounted to PLN 4 611 thousand, constituting 52% of the Group's total revenues, and were 207% higher than in the comparable period of 2019. The revenues from the sale of implementation services and technical support (the so-called "maintenance") amounted to PLN 3 573 thousand, constituting 40% of the Group's total revenues. Thus, the services mentioned above increased by 952% compared to the three quarters of 2019. Furthermore, in the three quarters of 2020, the Group generated revenues from providing additional services related to the sale of DataWalk software in the amount of PLN 756 thousand.

The table below presents consolidated revenues in the 9-month period ended September 30, 2020 and in the comparable period divided into operating segments.

Position	01/01/2020 - 09/30/2020	01/01/2019 - 09/30/2019	Change
Sales of licenses	4 611	1 504	207%
Services (implementation and technical assistance)	3 573	340	952%
Other	756	32	2 296%
Total revenues	8 939	1 875	377%

Source: Issuer.

The table below presents the currency structure of sales for the three quarters of 2020 and the three quarters of 2019.

Position	01/01/2020 -09/30/2020	01/01/2019 -09/30/2019
PLN (Polish zloty)	53%	32%
USD (U.S. Dollar)	47%	68%
Total	100%	100%

Source: Issuer.

Cash flow of the DataWalk Group

The Group's cash flow from operating activities (CFO) in the first three quarters of 2020 amounted to PLN -5 321 thousand versus PLN -7 788 thousand in the comparable period of 2019. Significant impact on the CFO in the first nine months of 2020 came from: i) a significantly lower net loss in the amount of PLN 6 137 thousand; ii) adjustments of net profit (loss) value by amortisation and depreciation costs in the amount of PLN 937 thousand; and iii) an increase in the balance of assets due to the balance sheet valuation of implementation contracts by PLN 388 thousand; and iii) change in receivables in the amount of PLN -3 798 thousand, where the increase in receivables' value as at the balance sheet date, September 30th, 2020 compared to the balance as of December 31st, 2019 by approx. PLN 4 287 thousand, despite the receipt of payment for sales made in previous reporting periods, was the result of issuing subsequent invoices by the Group, the payment dates of which fall after the balance sheet date, and iv) increase in deferred income by the total amount of PLN 2 703 thousand due to the increase in revenues from the sale of DataWalk software licenses, particularly in the subscription model.

The Group's investment activities (CFI) in the first nine months of 2020 amounted to PLN 689 thousand, which was particularly influenced by i) expenditure on developing DataWalk software in the amount of PLN 3 219 thousand; and ii) reclassification of bank deposits in the amount of PLN 4 011 thousand from short-term financial assets to cash items due to their maturity, which as at the balance sheet date, September 30th , 2020, was less than three months.

The Group's financial activities (CFF) in the first three quarters of 2020 amounted to PLN 876 thousand, which is mainly due to (i) the Group's receipt of a loan in PLN 1 227 thousand; and ii) repayment of liabilities due to financial leasing for the total value of PLN 351 thousand.

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 488 604,80 zł w całości wpłacony

Position	01/01/2020 - 09/30/2020	01/01/2019 - 09/30/2019	Change
CFO	-5 321	-7 788	-32%
CFI, including:	689	-1 887	-136%
- CAPEX	-3 400	-1 952	74%
CFF	876	10 041	-91%
Total net cash flows	-3 756	366	-1 126%

Source: Issuer.

CFO = Net cash generated (used) in operating activities,

CFI = Net cash generated (used) in investing activities,

CAPEX = expenditure on acquisition of tangible fixed assets + expenses for intangible assets + expenses related to development work,

CFF = Net cash (used) in financing activities.

Balance of the DataWalk Group

The table below presents selected balance sheet items as at September 30, 2020 and the end of December 2019.

Assets	09/30/2020	12/31/2019	Change
Intangible assets	8 527	5 863	45%
Trade receivables	7 361	3 074	139%
Other receivables	337	826	-59%
Financial assets (short-term)	0	4 011	-100%
Cash and cash equivalents	5 365	9 125	-41%
Other assets	780	960	-19%
Total assets	22 370	23 858	-6%

Source: Issuer.

Equity and liabilities	09/30/2020	12/31/2019	Change
Equity	14 833	20 966	-29%
Trade liabilities	880	809	9%
Bank loans and borrowings	1 232	0	0%
Other liabilities	1 201	965	25%
Other provisions	1 086	685	59%
Prepayments	3 137	435	622%
Total equity and liabilities	22 370	23 858	-6%

Source: Issuer.

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 488 604,80 zł w całości wpłacony

The table below presents selected financial ratios of the DataWalk Group as at the end of September 2020, as well as December 31, 2019.

Position	09/30/2020	12/31/2019
Current ratio	2,2	6,3
Quick Ratio	2,1	6,2
Cash Ratio	0,9	3,3
Debt ratio	34%	12%
Debt / Equity	0,1	0,0
Debt-to-Equity Ratio	51%	14%
Working Capital (in thousands PLN)	7 156	14 521

Source: Issuer.

Current ratio = Current assets (short-term) / Current liabilities (short-term),

Quick Ratio = (Cash and cash equivalents + Short-term investments + Account receivables) / Current liabilities (short-term),

Cash Ratio = Cash and cash equivalents / Current liabilities (short-term),

Debt ratio = Total liabilities / Total assets × 100%,

Debt / Equity = (Interest-bearing bank loans + Debt securities + Liabilities due to finance leases) / Total Shareholders' Equity,

Debt-to-Equity Ratio = (Total Liabilities / Total Shareholders' Equity) × 100%,

Working Capital = Current assets (short-term) - Current liabilities (short-term).

IMPACT OF THE COVID-19 EPIDEMIC ON THE GROUP'S OPERATIONS

In connection with the SARS-CoV-2 virus pandemic, administrative measures were introduced, restricting the freedom of economic activity and affecting the daily operations of enterprises. The current situation also affects the availability of staff, the possibility of conducting promotional activities, and the situation of the Group's potential customers. The ongoing pandemic, depending on its further development and actions taken at regional, national, and international levels, may have a significant negative impact on the economic situation in Poland and the world. Consequently, this may translate into the possibility of implementing the Group's plans and its future financial results.

The Group undertakes actions to minimize the impact of a pandemic, ensuring continuity of development and sales work as part of remote work. Furthermore, sales of the Group's products and services are conducted mainly using remote access channels, which significantly reduces the risk of the negative impact of mobility restrictions on its financial results. The Group does not have a supply chain because it produces virtual goods. Continuity of work depends on the availability of employees and their health. However, despite the effective mitigation of risks associated with the epidemic, limitations in the world and Poland, the Group cannot predict further development of the situation related to the pandemic.

DESCRIPTION OF MAJOR ACHIEVEMENTS OR FAILURES OF THE CAPITAL GROUP IN THE REPORTING PERIOD

• On January 27th, 2020, the company obtained information that the company's subsidiary, DataWalk Inc. received a purchase order for execution of a pilot project ("Pilot") with US System Integrator ("Customer"). The Pilot will be executed in order to demonstrate the DataWalk analytical platform in support of their end to end solution as part of a contract they hold with a member agency in the US Government.
• On February 14th, 2020, the company informed that today it concluded an agreement with Polski Koncern Naftowy Orlen S.A. registered in Płock, Poland ("Customer"), formalizing intent to execute the sale and implementation of a perpetual license ("Project") and production usage for anti-fraud applications of the

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

DataWalk analytical platform. The project with the Customer is a confirmation of the strategy execution as well as opens the perspective of cooperation in similar applications with other companies of similar size from commercial sector.

• On March 23rd, 2020, the company informed that it received a purchase order for execution of a partner contract with system integrator operating on South African and British markets TechFINIUM (Pty) Ltd registered in Boksburg, Republic of South Africa ("Partner"), formalizing the sale of a perpetual license ("Project") and production usage of the DataWalk analytical platform in SSG Security Solutions Proprietary Limited registered in Centurion, Republic of South Africa ("Customer"). The Project will be executed in applications connected with public safety, especially criminal investigations and crime prevention.

The Project in a geographical region outside the current area of business focus of the Issuer's Capital Group (North America – stage 3 of the strategy) is the result of numerous commercial inquiries initiated by partners and clients from around the world showing high purchasing activity in the area related to the use of the DataWalk platform. The project confirms the effectiveness of the Issuer's implementation of the strategy with main goal to build the position of a global leader (global vendor of enterprise software product) in selected areas of application.

• On May 9th, 2020, the company informed the conclusion of an agreement with an entity based in Warsaw that provides cloud services for the implementation of the project at the request of the state administration. The agreement concerns the sale of licenses for full production use of the DataWalk platform as a central repository and services in the field of analytical support in activities related to preventing the development of a pandemic and the effects of COVID-19.
• On May 28th , 2020, the company informed that the company's subsidiary, DataWalk Inc. obtained a purchase order from Research Innovations Inc. USA ("RII") for license sale and production usage of the DataWalk analytical platform in response to a task order ("Task Order") from the United States Department of Justice's Money Laundering and Asset Recovery Section ("MLARS").

The DataWalk analytics platform will be deployed in support of MLARS' mission to prosecute and coordinate complex, sensitive, multi-district, and international money laundering and asset forfeiture investigations and cases. The purchase order from RII constitutes a continuation of the business relationship established between the entities, as reported in the current ESPI report 21/2019 of June 4th, 2019.

The Task Order obtained by the RII consortium confirms the attractiveness of the RII solution, the key element of which is the DataWalk platform, as an alternative to solutions currently used in DOJ and MLARS, such as the Palantir system, and increases the possibilities of successfully applying for subsequent orders from other entities subordinate to DOJ as part of their broad Data Analytics Solution and Services project.

• On June 30th, 2020, the Executive Board of DataWalk S.A. reported that the company received a purchase order from LINK4 S.A., an insurance company registered in Warsaw, Poland ("Customer"). This purchase order formalizes with a date of June 30th the sale of a perpetual license ("Project") and production usage for anti-fraud applications of the DataWalk analytical platform. This project defines the cooperation plan between parties, continuing cooperation previously reported in ESPI 40/2019 dated September 30th, 2019.
• On July 30th, 2020, the issuer informed that the company's subsidiary, DataWalk Inc. has obtained a purchase order for the implementation of a test project ("Project") with a System Integrator in the USA ("Partner"). The order is for a temporary license sale in support of a project with a branch of the United States military for analyzing and mitigating potentials risks associated with COVID-19.
• On August 10th, 2020, the issuer informed that the company's subsidiary, DataWalk Inc. has obtained a purchase order from Research Innovations Inc. USA ("RII") for license sale of the DataWalk analytical platform to the United States Department of Homeland Security Customs and Border Protection ("DHS/CBP"). DHS/CBP may assist government border agencies of other countries to enhance their operational capabilities. DataWalk software has been selected for one such deployment, where it will be used to aid information, intelligence and data collection; as well as analysis and dissemination, for a national border security organization.

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 488 604,80 zł w całości wpłacony

• On September 3rd, 2020, the Executive Board of DataWalk S.A. reported that the company concluded today an agreement with Comp S.A. registered in Warsaw ("Partner") as part of a project with the Polish Police Headquarters based in Warsaw ("Client"). The agreement includes the sale of a perpetual license and the provision of implementation and training services for full production use of the DataWalk software platform as a central Police Operational Information System.
• On September 21st, 2020, the issuer informed that the company's subsidiary, DataWalk Inc. has signed an agreement with the Toronto Police Service (Canada) for a pilot deployment of DataWalk software. The Toronto Police Service is one of the ten largest municipal police agencies in North America, and will evaluate DataWalk software as a candidate intelligence analysis platform.
• On September 21st, 2020, the issuer informed that the company's subsidiary, DataWalk Inc. has obtained a purchase order from the U.S. Department of Labor Office of Inspector General (DOL OIG) for license sale of the DataWalk analytical platform. DOL OIG will utilize DataWalk in support of investigations of fraudulent unemployment claims associated with COVID-19 and the CARES Act.
• On September 25th, 2020, the issuer informed that the company's subsidiary, DataWalk Inc. has obtained a purchase order from DLT Solutions USA ("DLT") for license sale of the DataWalk analytical platform to the United States Department of Defense Office of Inspector General ("DoD OIG"). DataWalk software will be used in support of investigations of fraud, waste, and abuse across all United States Armed Forces, specifically regarding contracts related to recently released COVID-19 funds.
• On September 28th, 2020 the Executive Board of DataWalk S.A. disclosed confidential information which publication was delayed on September 17th, 2020. The content of the delayed confidential information was the adoption by the company's Executive Board of a resolution on September 17th, 2020 regarding the commencement of negotiations regarding participation in the private subscription of shares issued by way of increasing the share capital within the limits of the authorized capital. The reason for public disclosure of the abovementioned confidential information is the fact that the negotiation process is completed and that a resolution is adopted regarding an increase in the company's share capital within the authorized capital, excluding pre-emptive rights of existing shareholders after obtaining relevant consents from the company's Supervisory Board regarding the issue price of new issue shares and deprivation of pre-emptive rights.

Raising capital from financial institutions offering capital on favorable terms is in the interest of the company and is an expression of the investment needs of the Issuer's Capital Group resulting from the strategy execution and its current and expected deliverables. The funds obtained will contribute to increasing the pace and scale of the Group's business development in key markets.

In regards to the above, the Executive Board of DataWalk S.A. informed that on September 28th, 2020 a meeting of the company's Executive Board was held, which – acting pursuant to art. 446 § 1, 2 and 3 and art. 447 § 1 of the Code of Commercial Companies and § 6a of the Company's Articles of Association and having regard to the provisions of the resolutions of the Supervisory Board of September 28th, 2020 regarding:

(i) consenting to the deprivation of pre-emptive rights of existing shareholders in connection with the issue of O series shares

(ii) agreeing to determine the issue price of O series shares

– adopted in the form of a notarial deed resolution on increasing the company's share capital within the authorized capital by issuing new series O shares under private placement, excluding the subscription right of the existing shareholders and amending the Company's Articles of Association ("Resolution").

The Executive Board of the company, pursuant to a Resolution, increased the company's share capital from PLN 446 504,80 to an amount not less than PLN 446 504,90 and not higher than PLN 488 604,80, i.e. not less than PLN 0,10 and not higher than PLN 42 100,00 by way of issue of not less than 1 (one) and not more than 421 000 O series ordinary bearer shares with a nominal value of PLN 0,10 ("Shares") each. Pursuant to the aforementioned Resolution of the company's Executive Board, with the consent of the Supervisory Board, the Issuer's existing shareholders have been deprived of all pre-emptive rights to the Shares.

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE AFFECTING THE GROUP'S OPERATIONS

• On October 12th, 2020, the Executive Board of DataWalk S.A. informed that agreements were concluded with investors to subscribe for a total of 421 000 O series ordinary bearer shares with a nominal value of PLN 0.10 each ("Shares") issued by the company's Executive Board within the limits of authorized capital, excluding the pre-emptive right of existing shareholders. The issue price of one O series share was PLN 154,80 for one Share, therefore, as a result of the issue of O series shares. As a result of the issue of series O shares, the company raised PLN 65 170 800,00.
• On October 27 th, 2020, the Executive Board of DataWalk S.A. informed about registration on 26th October 2020, by the District Court for Wrocław-Fabryczna in Wrocław, VI Commercial Department of the National Court Register, amendments to the company's Statute, adopted by a resolution of the company's Executive Board regarding the increase in the company's share capital within the authorized capital and the amendment to the company's statute of 28th September 2020, as the Issuer informed in the current ESPI report 31/2020 dated on 28th September 2020. The Executive Board of the company informed that in connection with the registration of the said changes in the Articles of Association, the company's share capital amounts to PLN 488 604.80 and is divided into 4 886 048 shares, with a nominal value of PLN 0.10 each.
• On November 16th, 2020, the Executive Board of DataWalk S.A. reported that the company has received an agreement for sale and implementation of DataWalk software for a national intelligence agency in the European Union, a NATO member.

FACTORS LIKELY TO AFFECT, IN THE OPINION OF DATAWALK S.A., THE RESULTS GENERATED BY THE CAPITAL GROUP IN THE NEXT QUARTER AND THEREAFTER

In the opinion of the Executive Board, the most important external and internal factors that may affect the operations of the DataWalk Capital Group and its results include:

Elements and external trends that may affect the Group's perspectives

• The growing importance of data processing and analysis (Big Data),
• The situation on the insurance market in Poland and abroad,
• Increase in the scale and quality of activities aimed at counteracting and detecting fraud,
• Automation of data collection analysis processes,
• Increasing the user-friendliness of tools for analysing data sets,
• Pressure of the increase in remuneration in the IT market,
• The development of the SARS-CoV-2 virus pandemic causing the COVID-19 disease.

Elements and internal trends that may affect the Group's perspectives

• The perspective of total revenues and expenses generated,
• The level of planned expenditures on marketing and sales activities,
• Costs related to staff recruitment and purchase of IT services,
• The level of planned investments,
• Development of sales teams in connection with conducted trade activities.

OTHER INFORMATION RELEVANT FOR ASSESSING THE HR, PROPERTY AND FINANCIAL STANDING AND THE FINANCIAL RESULT OF THE DATAWALK CAPITAL GROUP

There is no other information than that mentioned in the report for the first three quarters of 2020, the disclosure of which could significantly affect the assessment of the Group's personal, property and financial situation.

COMPANY'S AUTHORITIES

The Executive Board

Paweł Wieczyński, Chairman of the Board

Responsible for the operational activity and the commercialization department.

Krystian Piećko, Member of the Board

Responsible for the activities of the R&D department and the vision of technological development.

Sergiusz Borysławski, Member of the Board

Responsible for administrative activity and the commercialization department.

During the 9-month period ended September 30, 2020, the DataWalk S.A. Executive Board was as follows:

The Executive Board	Period of performing the function
Paweł Wieczyński	01/01/2020 – 09/30/2020
Krystian Piećko	01/01/2020 – 09/30/2020
Sergiusz Borysławski	01/01/2020 – 09/30/2020

Source: Issuer.

Until the date of this report, the composition of Issuer's Executive Board has not changed.

The Supervisory Board

After taking into account the changes described below that occurred on September 30, 2020, the composition of the Issuer's Supervisory Board was as follows:

• Mr. Roman Pudełko Chairman of the Supervisory Board
• Mr. Wojciech Dyszy Vice Chairman of the Supervisory Board,
• Mr. Grzegorz Dymek Member of the Supervisory Board,
• Mr. Rafał Wasilewski Member of the Supervisory Board,
• Mr. Filip Paszke Member of the Supervisory Board.

During the 9-month period ended September 30, 2020, the composition of the Issuer's Supervisory Board of the Company is as follows:

The Supervisory Board	Period of performing the function
Wojciech Dyszy	01/01/2020 – 09/30/2020
Grzegorz Dymek	01/01/2020 – 09/30/2020
Roman Pudełko	01/01/2020 – 09/30/2020
Rafał Wasilewski	01/01/2020 – 09/30/2020
Filip Paszke	06/30/2020 – 09/30/2020*
Piotr Wojciech Bindas	01/01/2020 – 09/30/2020**
Paweł Sobkiewicz	01/01/2020 – 09/30/2020***
Wojciech Szymon Kowalski	01/01/2020 – 09/30/2020****

Source: Issuer.

* On 30th June 2020, based on resolution number 23, the General Meeting appointed Mr. Filip Paszke as a new Member of the Supervisory Board, within current three-year term.

** On 29th June 2020, the Company received the resignation of Mr. Piotr Bindas from his position as a member of the Supervisory Board with the effect from 30th June 2020. The submitted resignation does not contain information about its reasons.

*** On 26th June 2020, the Company received the resignation of Mr. Paweł Sobkiewicz from his position as a member of the Supervisory Board from the start of the General Meeting held on 30th June 2020. The submitted resignation does not contain information about its reasons.

**** On 22nd June 2020, the Company received the resignation of Mr. Wojciech Szymon Kowalski from his position as a member of the Supervisory Board with the effect from 30th June 2020. The submitted resignation does not contain information about its reasons.

As a result of the resignation submitted by the Supervisory Board's current Chairman, after the balance date, on August 5th, 2020, the Supervisory Board appointed Mr. Roman Pudełko as the Chairman of the Supervisory Board.

Until the date of this report, the composition of the Issuer's Supervisory Board has not changed.

DESCRIPTION OF THE ORGANISATION OF THE DATAWALK CAPITAL GROUP AND CONSOLIDATED ENTITIES

DataWalk S.A.

Basic information about the Issuer.

Name of the parent entity:	DataWalk S.A.
Country of residence:	Poland
Legal form:	Joint stock company
Register address:	Rzeźnicza 32-33, 50-130 Wrocław
Phone:	+48 71 707 21 74
Fax:	+48 71 707 22 73
E-mail:	biuro@datawalk.com
www:	www.datawalk.com
Tax identification number (NIP):	894-303-43-18
Statistical identification number (REGON):	21737247
Company registration number (KRS):	0000405409

Source: Issuer.

The role of the Issuer in the Group is to conduct research and development activities, including the development of the DataWalk analytical platform, at the same time the Issuer conducts marketing and sales activities in the EMEA and Asia region and manages the Group.

The company operates in the "global vendor of products" model, focusing on the development and sale of enterprise IT class products, i.e. globally competitive, specialized software for specific applications. The business model adopted by the Company is characterized by high scalability, translating into potentially high margin. This is possible due to the low participation of services provided individually for every client, both at the pre-implementation stage and after implementation (service).

DataWalk S.A. has been established for an indefinite period of time.

The company has no branches.

DataWalk Inc.

Basic information about an entity related by capital with the Issuer as at 09/30/2020.

Name of the entity:	DataWalk Inc.
Country of residence:	United States of America
Legal form:	Incorporated
Register adress:	1209 Orange Street, Wilmington, Delaware 19801
Address for correspondence:	303 Twin Dolphin Drive, Suite 600, #62044, Redwood City, CA 94065
TIN	81-3403469
Core business:	Activities related to consultancy in the field of computer science
Relation:	Subsidiary
Consolidation method:	Full
Share in the share capital:	100,00%
Share in the total number of votes at the AGM:	100,00%
E-mail:	info@datawalk.com
www:	www.datawalk.com
Date of taking control:	27 lipca 2016 r.
Value of shares:	4 854 thous. PLN
Revaluation adjustments:	-3 501 thous. PLN
Unit balance sheet value of shares	1 353 thous. PLN

Source: Issuer.

DataWalk Inc. is a company incorporated under US law with a registered office in Wilmington, Delaware, where the Issuer holds 100,00% share in the share capital and votes at the shareholders' meeting.

The role of DataWalk Inc. the Group relies on conducting sales and implementation activities related to the DataWalk platform in the United States and other countries of the North and South America.

DataWalk Inc. has been established for an indefinite period of time. The financial year of DataWalk Inc. is the calendar year.

Overview of the DataWalk Capital Group

DataWalk organizational structure of the Group as of 30 September 2020 year and in the comparative period:

Source: Issuer.

DataWalk Inc. is consolidated by DataWalk S.A. as part of the consolidated financial statements.

Changes in the management rules of the Capital Group and the Company

In the 9-month period ended September 30, 2020 and as at the date of this report, there were no changes regarding the structure of the Capital Group.

THE SHAREHOLDING STRUCTURE OF THE DATAWALK S.A.

Shareholder structure as at November 26, 2020 (share in the total number of votes)

Source: Issuer.

Shareholding structure as at 26 th November 2020 year:

Shareholder	Number of shares held	Number of votes at the AGM	Share in the share capital	Share in the total number of votes at the AGM
FGP Venture sp. z o.o.*1	1 175 000	1 900 000	24,05%	33,86%
Funds managed by Investors Towarzystwo Funduszy Inwestycyjnych S.A.2	400 000	400 000	8,19%	7,13%
Funds managed by Nationale-Nederlanden Powszechne Towarzystwo Emerytalne S.A.3	304 146	304 146	6,22%	5,42%
Other shareholders	3 006 902	3 006 902	61,54%	53,59%
Total	4 886 048	5 611 048	100,00%	100,00%

Source: Issuer.

* Mr. Paweł Wieczyński holds 198 000 shares of FGP Venture Sp. z o.o., which constitutes 33.33% of share in the share capital and votes at the shareholders' meeting of FGP Venture Sp. z o.o.

Mr. Krystian Piećko holds 198 000 shares of FGP Venture Sp. z o.o., which constitutes 33.33% of share in the share capital and votes at the shareholders' meeting of FGP Venture Sp. z o.o.

Mr. Sergiusz Borysławski holds 198 000 shares of FGP Venture Sp. z o.o., which constitutes 33.33% of share in the share capital and votes at the shareholders' meeting of FGP Venture Sp. z o.o.

³ According to the current report No. 39/2020 of November 2, 2020.

¹ According to the current report No. 37/2020 of October 28, 2020.

² According to the current report No. 16/2015 of September 16, 2015.

Shareholder structure as at September 30, 2020 (share in the total number of votes)

Source: Issuer.

Shareholding structure as at 30th September 2020 year:

Shareholder	Number of shares held	Number of votes at the AGM	Share in the share capital	Share in the total number of votes at the AGM
FGP Venture sp. z o.o.*4	1 175 000	1 900 000	26,32%	36,61%
Funds managed by Investors Towarzystwo Funduszy Inwestycyjnych S.A.5	400 000	400 000	8,96%	7,71%
Other shareholders	2 890 048	2 890 048	64,72%	55,68%
Total	4 465 048	5 190 048	100,00%	100,00%

Source: Issuer.

* Mr. Paweł Wieczyński holds 198 000 shares of FGP Venture Sp. z o.o., which constitutes 33.33% of share in the share capital and votes at the shareholders' meeting of FGP Venture Sp. z o.o.

Mr. Krystian Piećko holds 198 000 shares of FGP Venture Sp. z o.o., which constitutes 33.33% of share in the share capital and votes at the shareholders' meeting of FGP Venture Sp. z o.o.

Mr. Sergiusz Borysławski holds 198 000 shares of FGP Venture Sp. z o.o., which constitutes 33.33% of share in the share capital and votes at the shareholders' meeting of FGP Venture Sp. z o.o.

⁵ According to the current report No. 16/2015 of September 16, 2015.

⁴ According to the current report no. 47/2019 of October 31, 2019.

STRUCTURE OF SHAREHOLDINGS IN DATAWALK S.A. OR RIGHTS ATTACHED TO SHARES, HELD BY MEMBERS OF THE ISSUER'S EXECUTIVE AND SUPERVISORY BOARDS

Ownership of the shares DataWalk SA by managers and supervisors at the date of approval of this report for publication, i.e. as at November 26 th, 2020.

Shareholder	Position	Number of shares held
Paweł Wieczyński*	President of the Executive Board	56 115
Krystian Piećko*	Member of the Executive Board	55 650
Sergiusz Borysławski*	Member of the Executive Board	55 680
Roman Pudełko	Chairman of the Supervisory Board	15 918
Wojciech Dyszy	Vice-chairman of the Supervisory Board	1 000
Rafał Wasilewski**	Member of the Supervisory Board	21 000
Grzegorz Dymek	Member of the Supervisory Board	0
Filip Paszke	Member of the Supervisory Board	0

Source: Issuer.

* Members of the Executive Board of the Company are also shareholders and members of the executive board of FGP Venture Sp. z o.o., whose share in the Issuer's shareholding structure has been presented in the section "Shareholder structure as at November 26, 2020".

** The table presents the number of shares held by the Supervisory Board Member. Moreover, according to the current report 32/2019 of 27 August 2019, 1 000 shares of the Issuer are held by Beyondream Investments Ltd (a person closely related to this Member of the Supervisory Board).

The table below presents ownership of shares DataWalk SA by managers and supervisors at the report's submission date for the 1st half of 2020.

Shareholder	Position	Number of shares held
Paweł Wieczyński*	President of the Executive Board	56 115
Krystian Piećko*	Member of the Executive Board	55 650
Sergiusz Borysławski*	Member of the Executive Board	55 680
Roman Pudełko	Chairman of the Supervisory Board	15 918
Wojciech Dyszy	Vice-chairman of the Supervisory Board	1 000
Rafał Wasilewski**	Member of the Supervisory Board	21 000
Grzegorz Dymek	Member of the Supervisory Board	0
Filip Paszke	Member of the Supervisory Board	0

Source: Issuer.

* Members of the Executive Board of the Company are also shareholders and members of the executive board of FGP Venture Sp. z o.o., whose share in the Issuer's shareholding structure has been presented in the section "Shareholder structure as at September 30, 2020".

** The table presents the number of shares held by the Supervisory Board Member. Moreover, according to the current report 32/2019 of 27 August 2019, 1 000 shares of the Issuer are held by Beyondream Investments Ltd (a person closely related to this Member of the Supervisory Board).

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 488 604,80 zł w całości wpłacony

Page | 33

DATAWALK S.A.

SEPARATE CONDENSED INTERIM FINANCIAL STATEMENT

for the period of 9 months ended 30 September 2020

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247

Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 488 604,80 zł w całości wpłacony SEPARA TE COND ENSED IN TER IM FINANCIA L STA TEM ENT THE FIR ST THREE QUAR TERS OF 2020

Separate Condensed Interim Statement of Financial Position (in thousands of PLN)

		ASSETS	09/30/2020	12/31/2019
A.		Non-current assets	10 372	7 776
	I.	Fixed assets	175	66
	II.	Intangible assets	8 527	5 863
	III.	Right-of-use assets	265	577
	IV.	Long-term financial assets	1 353	1 218
	V.	Long-term receivables	41	41
	VI.	Deferred tax assets	11	11
	VII.	Long-term prepayments	0	0
B.	Current assets		10 150	15 212
	I.	Inventory	0	0
	II.	Trade receivables	6 355	2 014
	III.	Receivables from income tax	0	0
	IV.	Other receivables	331	820
	V.	Financial assets	0	4 011
	VI.	Prepayments	186	138
	VII.	Cash and cash equivalents	3 279	8 230
	TOTAL ASSETS		20 522	22 988

		EQUITY AND LIABILITIES	09/30/2020	12/31/2019
A.	Equity		15 963	20 638
	I.	Share capital	447	447
	II.	Other capitals	78 746	78 746
	III.	Profit (loss) from previous years	-61 325	-50 132
	IV.	Net profit (loss) for the current period	-4 676	-11 193
	V.	Reserve capital	2 771	2 771
B.		Long-term liabilities	44	153
	I.	Other provisions	0	0
	II.	Deferred tax liabilities	11	11
	III.	Lease liabilities	34	142
C.		Short-term liabilities	4 515	2 197
	I.	Trade liabilities	831	641
	II.	Income tax liabilities	0	0
	III.	Lease liabilities	240	438
	IV.	Other liabilities	488	345
	V.	Other provisions	858	474
	VI.	Prepayments	2 098	300
		TOTAL EQUITY AND LIABILITIES	20 522	22 988

NET ASSET VALUE PER SHARE	09/30/2020	12/31/2019
Net asset value	15 963	20 638
Number of shares (pcs.)	4 465 048	4 113 366
Net asset value per share (in PLN)	3,58	5,02
Diluted number of shares (pcs.)	4 554 047	4 202 365
Diluted net asset value per share (in PLN)	3,51	4,91

The net asset value per share was calculated in relation to the weighted average number of the Company's shares for a given period. The number of shares calculated in this way in the first three quarters of 2020 was 4 465 048, while in 2019 the weighted average number of shares in the Company was 4 113 366.

The weighted average diluted number of shares in the Company in the first three quarters of 2020 amounted to 4 554 047, including 88 999 shares under the incentive program, while in 2019 the average amounted to 4 202 365, including 88 999 shares under the incentive program.

Separate Condensed Interim Profit and Loss Account with The Statement of Comprehensive Income (in thousands of PLN)

PROFIT AND LOSS ACCOUNT		01/01/2020 – 09/30/2020	01/01/2019 – 09/30/2019	07/01/2020 – 09/30/2020*	07/01/2019 – 09/30/2019*
A. Revenues		6 783	1 875	3 101	1 114
B.	Operating costs	8 220	10 390	3 019	3 756
	Materials and energy	90	67	27	23
	Employee benefits	2 303	1 913	758	617
	Amortisation and depreciation	926	491	309	205
	External services	4 585	7 715	1 802	2 836
	Other costs	316	204	124	76
C.	Profit/Loss on sales	-1 437	-8 514	82	-2 642
	Other operating incomes	385	330	31	88
	Other operating costs	3 570	2 373	-80	848
D.	Operating profit (loss)	-4 622	-10 557	193	-3 401
	Financial incomes	112	86	-97	47
	Financial costs	165	2	129	0
E.	Pre-tax profit (loss)	-4 676	-10 474	-34	-3 354
	Income tax	0	0	0	0
	current	0	0	0	0
	deferred	0	0	0	0
F.	Net profit (loss)	-4 676	-10 474	-34	-3 354

STATEMENT OF COMPREHENSIVE INCOME	01/01/2020 – 09/30/2020	01/01/2019 – 09/30/2019	07/01/2020 – 09/30/2020	07/01/2019 – 09/30/2019
Net profit (loss)	-4 676	-10 474	-34	-3 354
Other comprehensive income	0	0	0	0
1. Other comprehensive income, which in the future will be able to be reclassified to the profit or loss	0	0	0	0
2. Other comprehensive income, which will not be able in the future be reclassified to the profit or loss	0	0	0	0
Total comprehensive income	-4 676	-10 474	-34	-3 354

PROFIT (LOSS) PER SHARE ATTRIBUTABLE TO:	01/01/2020 – 09/30/2020	01/01/2019 – 09/30/2019	07/01/2020 – 09/30/2020	07/01/2019 – 09/30/2019
Number of shares (pcs.)	4 465 048	4 030 784	4 465 048	4 138 048
Profit (loss) per share (in PLN)	-1,05	-2,60	-0,01	-0,81
Diluted number of shares (pcs.)	4 554 047	4 210 784	4 554 047	4 318 048
Diluted profit (loss) per share (in PLN)	-1,03	-2,49	-0,01	-0,78

The net profit (loss) per share was calculated in relation to the weighted average number of the Company's shares for a given period. The number of shares calculated in this way in the first three quarters of 2020 was 4 465 048, while in the first three quarters of 2019 the weighted average number of shares in the Company was 4 030 784.

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

The weighted average diluted number of shares in the Company in the first three quarters of 2020 amounted to 4 554 047, including 88 999 shares under the incentive program, while in the first three quarters of 2019 the average amounted 4 210 784, including 180 000 shares under the incentive program.

* Data for the 3rd quarter of 2020 were determined by subtracting from the data for the first three quarters of 2020 the data disclosed by the Group in the report for the 1st half of 2020 (reviewed).

* Data for the 3rd quarter of 2019 were determined by subtracting from the data for the first three quarters 2019 the data disclosed by the Group in the report for the 1st half of 2020 (reviewed).

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 488 604,80 zł w całości wpłacony

Separate Condensed Interim Statement of Changes in Equity (in thousands of PLN)

STATEMENT OF CHANGES IN EQUITY	Share capital	Other capitals	Reserve capital	Profit (loss) from previous years	Net profit (loss) for the current period	Total equity
Balance as at 01/01/2020	447	78 746	2 771	-50 132	-11 193	20 638
Change in accounting policy	0	0	0	0	0	0
Balance as at 01/01/2020 adjusted	447	78 746	2 771	-50 132	-11 193	20 638
Net profit (loss)	0	0	0	0	-4 676	-4 676
Share capital increase	0	0	0	0	0	0
Distribution of profit (loss) for 2019	0	0	0	-11 193	11 193	0
Changes in equity resulting from IFRS 2	0	0	0	0	0	0
Balance as at 09/30/2020	447	78 746	2 771	-61 325	-4 676	15 963

STATEMENT OF CHANGES IN EQUITY	Share capital	Other capitals	Reserve capital	Profit (loss) from previous years	Net profit (loss) for the current period	Total equity
Balance as at 01/01/2019	368	54 783	2 803	-36 359	-13 773	7 822
Change in accounting policy	0	0	0	0	0	0
Balance as at 01/01/2019 adjusted	368	54 783	2 803	-36 359	-13 773	7 822
Net profit (loss)	0	0	0	0	-10 474	-10 474
Share capital increase	46	9 009	0	0	0	9 055
Distribution of profit (loss) for 2018	0	0	0	-13 773	13 773	0
Changes in equity resulting from IFRS 2	0	0	2 102	0	0	2 102
Balance as at 09/30/2019	414	63 792	4 905	-50 132	-10 474	8 505

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 446.504,80 zł w całości wpłacony

CASH FLOW STATEMENT	01/01/2020 – 09/30/2020	01/01/2019 – 09/30/2019
Net cash flows from operating activities
Net profit (loss)	-4 676	-10 474
Total adjustments, including:	4 520	2 502
- amortisation and depreciation	926	491
- foreign exchange gains (losses)	4	0
- interest and dividends	-60	-44
- profit (loss) on investing activities, including:	3 651	-47
- impairment of financial assets	3 650	-47
- other	1	0
- other (non-cash cost of the incentive program)	0	2 102
- income tax of current period	0	0
- income tax paid	0	0
Net cash flow from operating activities before the change in working capital	-156	-7 971
Change in working capital, including:	-1 355	173
- change in receivables	-3 852	112
- change in inventories	0	0
- change in liabilities due to employee benefits	175	75
- change in provisions	385	349
- change in short-term liabilities	186	125
- change in other assets	-48	391
- change in deferred income	1 798	132
- other adjustments (capital increase)	0	-1 011
Net cash generated (used) in operating activities	-1 511	-7 798
Cash flows from investing activities
Proceeds from sale of property, plant, equipment and intangible assets	0	19
Purchases of property, plant and equipment and intangible assets	-3 389	-1 945
Expenses for purchase of shares in related entities	-3 784	0
Interest	77	46
Short-term bank deposits (over 3 months)	4 011	0
Net cash generated (used) in investing activities	-3 085	-1 880
Cash flows from financing activities
Proceeds from issuance of shares	0	10 066
Payments of liabilities under finance lease agreements	-334	-23
Interest paid	-17	-2
Net cash (used) in financing activities	-351	10 041
Total net cash flows	-4 948	363
Change in cash due to foreign currency translation	-4	0
Opening balance of cash	8 230	1 755
Closing balance of cash	3 279	2 117

Separate Condensed Interim Cash Flow Statement (in thousands of PLN)

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 446.504,80 zł w całości wpłacony

Page | 40

Paweł Wieczyński Krystian Piećko Sergiusz Borysławski Chairman of the Board Member of the Board Member of the Board

……………………………………… ……………………………………… ………………………………………

Wroclaw, November 26, 2020

DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław

KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 446.504,80 zł w całości wpłacony

DataWalk S.A. Rzeznicza 32-33

50-130 Wroclaw

tel.: +48 71 707 21 74 fax: +48 71 707 22 73 e-mail: biuro@datawalk.com

Contact for investors:

Sergiusz Borysławski Member of the Board inwestorzy@datawalk.com