Datawalk S.A. — Interim / Quarterly Report 2020

Sep 30, 2020

DATAWALK CAPITAL GROUP SUMMARY OF THE SEMI-ANNUAL REPORT

for the 6-month period ended June 30, 2020

September 2020

THE EXECUTIVE BOARD`S LETTER

Dear Investors,

The first half of 2020 was a time when we improved the efficiency of our internal processes and strengthened our staff to meet the requirements in the form of numerous new contracts.

The most important commercial successes in the first half of the year include, chronologically:

• undisclosed in terms of name and nature, a test project for a government institution in the US,
• long-term agreement with PKN Orlen, significantly affecting revenues throughout 2020, as well as opening, as the first reference, the sales potential for anti-fraud applications in the non-financial corporate world,
• remote implementation in the SSG, confirming the determination of customers globally looking for alternatives to the IBM i2 system,
• contract for the implementation and use of the DataWalk system as a central repository for analyzing the pandemic situation in Poland,
• sales to the MLARS section under a frame contract with the US Department of Justice, where by officially replacing the Palantir system, we gain a foothold in the fight for next orders in the coming years,
• sale to LINK 4, opening a commercial opportunity at the third insurance group, after earlier successful implementations at Talanx and Vienna Insurance Group.

The above events were intertwined with positive corporate and organizational changes reflecting DataWalk's express advance from the group of aspiring technology companies to the Polish high-tech leader in the enterprise IT sector (COTS vendor) with clear global perspectives.

The growth in the number of clients, some constituting world-class references, will over time result in incremental revenue opportunities at those same clients as well as helping open doors at future clients in related spaces. Longterm contracts are staged, conditioning subsequent purchases, on the results obtained during the initial implementation. Therefore, when publishing information on revenue contracted for invoicing in 2020 of approximately PLN 15.7 million (circa \$4M) on September 4th, 2020, we only provided a picture of how the contracts concluded until that date may translate into revenue that can be achieved this year only, while the perspective of cooperation with our clients is much wider.

Revenue to date was built by only two sales people in Poland and two in the USA, the latter joining DataWalk Inc. only a year and a half ago. This means that revenue to date does not reflect the potential of the company as we scale. The best in class COTS (Commercial off the Shelf) Enterprise IT vendors that achieved capitalization of billions of dollars, when they were at our point in their development, invested all funds from customers and investors in the aggressive development of sales and implementation teams. Due to the difficult situation in the capital market in Poland in 2019, we invested in sales less than suggested by our sales processes and therefore were not able to optimize revenue scaling.

Given our strategic goals and the expected capital reinforcement reported in the ESPI announcement 31/2020 of September 28, 2020, we intend to invest into sales and implementation teams in North America and possibly into similar teams in Europe. The expenditures will increase sales when each new team reaches the average sales cycle, i.e. in approx. 2 years.

In the short term, we focus finalizing the recruitment of about 20 people while simultaneously carrying out many implementations per our signed contracts and developing the DataWalk platform in response to global trends and market demand.

We would like to thank the shareholders for their support and trust.

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 third quarter of 2020, the sales funnel of the Polish team stabilized due to the increase in priority of closing and monetization of existing customer discussions. In September this year we added a third sales person dedicated to the EMEA market.

The sales funnel for North America is in the early stages of expansion and is growing well and as expected given the two sales managers in that region.

Sales funnel aggregate [thousands of USD]

Source: Issuer.

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

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 1ST HALF OF 2019 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 1ST HALF OF 2020 17
EXPECTED FINANCIAL SITUATION OF THE GROUP DATAWALK 21
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 22
SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE AFFECTING THE GROUP'S OPERATIONS 23
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 24
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 September 29, 2020 (share in the total number of votes) 30 Shareholder structure as at May 22, 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 FOR THE 1ST HALF OF 2019 34
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

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 06/30/2020	from 01/01/2019 to 06/30/2019	from 01/01/2020 to 06/30/2020	from 01/01/2019 to 06/30/2019
	in thousands of PLN	in thousands of PLN	in thousands of EUR	in thousands of EUR
Revenues from sales	5 116	761	1 152	178
Profit/Loss on sales	-4 831	-5 757	-1 088	-1 343
Operating profit (loss)	-4 522	-7 078	-1 018	-1 651
Pre-tax profit (loss)	-4 325	-7 038	-974	-1 641
Net profit (loss)	-4 425	-7 040	-996	-1 642
Total comprehensive income	-4 340	-7 047	-977	-1 643
Weighted average number of ordinary shares (pcs.)	4 465 048	3 976 263	4 465 048	3 976 263
Profit (loss) per share (in PLN/EUR)	-0,99	-1,77	-0,22	-0,41
Net cash generated (used) in operating activities	-3 552	-4 759	-800	-1 110
Net cash generated (used) in investing activities	1 944	-2 410	438	-562
Net cash (used) in financing activities	402	10 056	90	2 345
Total net cash flows	-1 206	2 887	-272	673

	06/30/2020	12/31/2019	06/30/2020	12/31/2019
SELECTED FINANCIAL DATA	in thousands of PLN	in thousands of PLN	in thousands of EUR	in thousands of EUR
Total assets / equity and liabilities	20 407	23 858	4 569	5 603
Non-current assets	8 115	6 598	1 817	1 549
Current assets	12 291	17 260	2 752	4 053
Equity	16 627	20 966	3 723	4 923
Total liabilities	3 780	2 892	846	679
Long-term liabilities	747	153	167	36
Short-term liabilities	3 034	2 740	679	643

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

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 06/30/2020	from 01/01/2019 to 06/30/2019	from 01/01/2020 to 06/30/2020	from 01/01/2019 to 06/30/2019
	in thousands of PLN	in thousands of PLN	in thousands of EUR	in thousands of EUR
Revenues from sales	3 682	761	829	178
Profit/Loss on sales	-1 519	-5 872	-342	-1 370
Operating profit (loss)	-4 815	-7 156	-1 084	-1 669
Pre-tax profit (loss)	-4 642	-7 119	-1 045	-1 660
Net profit (loss)	-4 642	-7 119	-1 045	-1 660
Total comprehensive income	-4 642	-7 119	-1 045	-1 660
Weighted average number of ordinary shares (pcs.)	4 465 048	3 976 263	4 465 048	3 976 263
Profit (loss) per share (in PLN/EUR)	-1,04	-1,79	-0,23	-0,42
Net cash generated (used) in operating activities	-600	-4 723	-135	-1 102
Net cash generated (used) in investing activities	-455	-2 403	-103	-561
Net cash (used) in financing activities	-237	10 056	-53	2 345
Total net cash flows	-1 292	2 929	-291	683

	06/30/2020	12/31/2019	06/30/2020	12/31/2019
SELECTED FINANCIAL DATA	in thousands of PLN	in thousands of PLN	in thousands of EUR	in thousands of EUR
Total assets / equity and liabilities	18 567	22 988	4 157	5 398
Non-current assets	8 072	7 776	1 808	1 826
Current assets	10 494	15 212	2 350	3 572
Equity	15 997	20 638	3 582	4 846
Total liabilities	2 570	2 350	575	552
Long-term liabilities	53	153	12	36
Short-term liabilities	2 517	2 197	564	516

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

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	06/30/2020	12/31/2019
1 EUR	4,4660	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	from 01/01/2019
	to 06/30/2020	to 06/30/2019
1 EUR	4,4413	4,2880

Page | 9

DATAWALK CAPITAL GROUP CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENT

FOR THE 1st HALF OF 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 1st HALF OF 2019

		ASSETS	06/30/2020	12/31/2019
A.	Non-current assets		8 115	6 598
	I.	Fixed assets	169	106
	II.	Intangible assets	7 516	5 863
	III.	Right-of-use assets	376	577
	IV.	Long-term financial assets	0	0
	V.	Long-term receivables	41	41
	VI.	Deferred tax assets	13	11
	VII. Long-term prepayments		0	0
B.	Current assets		12 291	17 260
	I.	Inventory	0	0
	II.	Trade receivables	2 977	3 074
	III.	Receivables from income tax	0	0
	IV.	Other receivables	703	826
	V.	Financial assets	0	4 011
	VI.	Prepayments	650	225
	VII.	Cash and cash equivalents	7 962	9 125
	TOTAL ASSETS		20 407	23 858

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

		EQUITY AND LIABILITIES	06/30/2020	12/31/2019
A.	Equity		16 627	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	-4 425	-11 044
	V.	Reserve capital	2 771	2 771
	VI.	Foreign exchange translation differences	86	0
B.		Long-term liabilities	747	153
	I.	Other provisions	0	0
	II.	Deferred tax liabilities	13	11
	III.	Lease liabilities	40	142
	IV.	Bank loans and borrowings	639	0
	V.	Other liabilities	55	0
C.		Short-term liabilities	3 034	2 740
	I.	Trade liabilities	930	809
	II.	Income tax liabilities	144	0
	III.	Lease labilities	344	438
	IV.	Other liabilities	523	374
	V.	Other provisions	690	685
	VI.	Prepayments	403	435
		TOTAL EQUITY AND LIABILITIES	20 407	23 858

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

NET ASSET VALUE PER SHARE	06/30/2020	12/31/2019
Net asset value	16 627	20 966
Number of shares (pcs.)	4 465 048	4 113 366
Net asset value per share (in PLN)	3,72	5,10
Diluted number of shares (pcs.)	4 554 047	4 202 365
Diluted net asset value per share (in PLN)	3,65	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 1st half 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 1st half 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 – 06/30/2020	01/01/2019 – 06/30/2019	04/01/2020 – 06/30/2020*	04/01/2019 – 06/30/2019*
A.	Revenues	5 116	761	3 855	581
B.	Operating costs	9 947	6 518	5 058	3 584
	Materials and energy	70	44	41	23
	Employee benefits	5 256	3 089	2 696	1 674
	Amortisation and depreciation	625	287	310	205
	External services	3 490	2 756	1 883	1 503
	Other costs	507	341	128	178
C.	Profit/Loss on sales	-4 831	-5 757	-1 204	-3 002
	Other operating incomes	354	242	278	172
	Other operating costs	45	1 564	-83	804
D.	Operating profit (loss)	-4 522	-7 078	-843	-3 634
	Financial incomes	209	43	-28	27
	Financial costs	13	2	6	0
E.	Pre-tax profit (loss)	-4 325	-7 038	-876	-3 607
	Income tax	100	3	96	1
	current	100	3	96	1
	deferred	0	0	0	0
F.	Net profit (loss)	-4 425	-7 040	-971	-3 608

NET PROFIT (LOSS) ATTRIBUTABLE TO:	01/01/2020 – 06/30/2020	01/01/2019 – 06/30/2019	04/01/2020 – 06/30/2020	04/01/2019 – 06/30/2019
- shareholders of the parent company	-4 425	-7 040	-971	-3 608
- non-controlling interests	0	0	0	0

STATEMENT OF COMPREHENSIVE INCOME	01/01/2020 – 06/30/2020	01/01/2019 – 06/30/2019	04/01/2020 – 06/30/2020	04/01/2019 – 06/30/2019
Net profit (loss)	-4 425	-7 040	-971	-3 608
Other comprehensive income	86	-6	-58	-23
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	86	-6	-58	-23
Total comprehensive income	-4 340	-7 047	-1 030	-3 630

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:	01/01/2020 – 06/30/2020	01/01/2019 – 06/30/2019	04/01/2020 – 06/30/2020	04/01/2019 – 06/30/2019
- shareholders of the parent company	-4 425	-7 047	-971	-3 630
- non-controlling interests	0	0	0	0

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

PROFIT (LOSS) PER SHARE ATTRIBUTABLE TO:	01/01/2020 – 06/30/2020	01/01/2019 – 06/30/2019	04/01/2020 – 06/30/2020	04/01/2019 – 06/30/2019
Number of shares (pcs.)	4 465 048	3 976 263	4 465 048	4 138 048
Profit (loss) per share (in PLN)	-0,99	-1,77	-0,22	-0,87
Diluted number of shares (pcs.)	4 554 047	4 156 263	4 554 047	4 318 048
Diluted profit (loss) per share (in PLN)	-0,97	-1,69	-0,21	-0,84

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 1st half of 2020 was 4 465 048, while in the 1st half of 2019 the weighted average number of shares in the Company was 3 976 263.

The weighted average diluted number of shares in the Company in the 1st half of 2020 amounted to 4 554 047, including 88 999 shares under the incentive program, while in the 1st half of 2019 the average amounted 4 156 263, including 180 000 shares under the incentive program.

* Data for the 2nd quarter of 2020 were determined by subtracting from the data for the 1st half of 2020 (reviewed) the data disclosed by the Group in the report for the 1st quarter of 2020.

* Data for the 2nd quarter of 2019 were determined by subtracting from the data for the 1st half of 2019 (reviewed) the data disclosed by the Group in the report for the 1st quarter of 2019.

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	-4 425	-4 425
Foreign exchange translation differences	0	0	86	0	0	0	86
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 06/30/2020	447	78 746	86	2 771	-60 998	-4 425	16 627

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	-7 040	-7 040
Foreign exchange translation differences	0	0	-6	0	0	0	-6
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	1 401	0	0	1 401
Balance as at 06/30/2019	414	63 792	4	4 204	-49 953	-7 040	11 420

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

CASH FLOW STATEMENT	01/01/2020 – 06/30/2020	01/01/2019 – 06/30/2019
Net cash flows from operating activities
Net profit (loss)	-4 425	-7 040
Total adjustments, including:	616	1 646
- amortisation and depreciation	625	287
- foreign exchange gains (losses)	-43	2
- interest and dividends	-62	-45
- profit (loss) on investing activities	1	0
- other (non-cash cost of the incentive program)	0	1 401
- income tax of current period	100	3
- income tax paid	-5	-3
Net cash flow from operating activities before the change in working capital	-3 809	- 5 394
Change in working capital, including:	257	636
- change in receivables	220	1 034
- change in inventories	0	0
- change in liabilities due to employee benefits	165	56
- change in provisions	6	153
- change in short-term liabilities	238	-38
- change in other assets	-339	433
- change in deferred income	-32	8
- other adjustments (capital increase)	0	-1 011
Net cash generated (used) in operating activities	-3 552	-4 759
Cash flows from investing activities
Purchases of property, plant and equipment and intangible assets	-2 141	- 1 252
Interest	75	47
Short-term bank deposits (over 3 months)	4 011	-1 205
Net cash generated (used) in investing activities	1 944	-2 410
Cash flows from financing activities
Proceeds from issuance of shares	0	10 066
Proceeds from bank loans and borrowings	639	0
Payments of liabilities under finance lease agreements	-224	-8
Interest paid	-13	-2
Net cash (used) in financing activities	402	10 056
Total net cash flows	-1 206	2 887
Change in cash due to foreign currency translation	43	-2
Opening balance of cash	9 125	2 241
Closing balance of cash	7 962	5 126

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

Page | 16

COMMENTARY AND ADDITIONAL INFORMATION FOR THE CONSOLIDATED SEMI-ANNUAL REPORT OF THE DATAWALK CAPITAL GROUP

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

SUMMARY AND ANALYSIS OF THE FINANCIAL RESULTS OF THE DATAWALK CAPITAL GROUP FOR THE 1ST HALF 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 development are starting to bear fruit in converting projects from the sales funnel into revenue. In the 1st half of 2020, the sales value of the DataWalk Group amounted to PLN 5 116 thousand and was higher by 572% compared to the revenues achieved in the 1st half of 2019, which were at the level of PLN 761 thousand.

Particularly noteworthy is the increase in revenues achieved in the American market, where the value of sales in the 1st half of 2020 reached the level of PLN 2 062 thousand, while in the comparable period of 2019 there were no revenues generated. The government sector accounted for 98% of North American sales.

The Group also recorded an increase in revenues in other markets (EMEA region). The value of sales in the 1 st half of 2020 amounted to PLN 3 054 thousand, which, compared to PLN 761 thousand generated in the comparable period of 2019, represents an increase of 301%. Sales to the government sector were 55% and the remaining 45% was for the private sector.

The revenue from sales in Poland was PLN 2 218 thousand. In the results for the 1 st half of 2020, only approx. 12% of the revenue planned in 2020 from the contract with PKN Orlen S.A. (ESPI 4/2020) was recognized, which is only a small part of the long-term contract value. Due to this contract's size and its specific nature, the Issuer decided to provide this information to assess the Group's financial situation better.

The increasing revenue confirmed the decision to invest in the commercialization process. The DataWalk Group manages the investment process through triggers related to the achieved business goals and financial models. This approach enables us to control the pace of the spending increases which are most heavily influenced by the pace of commercialization in North America at the current stage of the Group's development.

The operating costs of the Group in the 1 st half of 2020 were influenced by: an increase in remuneration costs resulting in particular from the process of building the sales and implementation teams in the Issuer's subsidiary, higher costs of amortization of completed software development value, as well as an increase in the expenses of external services, especially in a subsidiary of the Issuer, which was related to the development of the Group's operations and the sales processes.

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 6-month period ending June 30 th , 2020 and the comparable period of 2019 (in thousands of PLN).

Position	01/01/2020 - 06/30/2020	01/01/2019 - 06/30/2019	Change
Revenues	5 116	761	572%
Operating costs	9 947	6 518	53%
Profit/Loss on sales	-4 831	-5 757	-16%
Other operating incomes	354	242	46%
Other operating costs	45	1 564	-97%
Operating profit (loss)	-4 522	-7 078	-36%
Net profit (loss) attributable to shareholders of the parent company	-4 425	-7 040	-37%

Source: Issuer.

In the 1st half 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 1 401 thousand, representing 90% of the total other operating costs. The program ended on December 31st, 2019. In the 1st half of 2020, no expenses were from the incentive program.

The table below presents additional selected consolidated financial information for the 6-month period ending June 30 th, 2020 and the comparable period of 2019 (in thousands of PLN).

Position	01/01/2020 - 06/30/2020	01/01/2019 - 06/30/2019	Change
Revenues*	5 116	761	572%
EBIT	-4 522	-7 078	-36%
Amortisation and depreciation	625	287	117%
EBITDA	-3 897	-6 791	-43%
Non-cash costs of the incentive program	0	1 401	-100%
Adjusted EBITDA	-3 897	-5 390	-28%
CFObt	-3 552	-4 759	-25%
CAPEX	-2 141	-1 252	71%
FCF	-5 693	-6 011	-5%
Closing balance of cash	7 962	9 125	-13%
Interest debt	1 023	579	77%

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 1st half of 2020, revenues from the sale of licenses amounted to PLN 2 284 thousand, constituting 45% of the Group's total revenues, and were 358% 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 2 472 thousand, constituting 48% of the Group's total revenues. The Group's remaining revenues, which amounted to PLN 360 thousand, was the sale of additional services.

The table below presents consolidated revenues in the 6-month period ended June 30th , 2020 and in the comparable period divided into operating segments (in thousands of PLN).

Position	01/01/2020 - 06/30/2020	01/01/2019 - 06/30/2019	Change
Sales of licenses	2 284	498	358%
Services (implementation and technical assistance)	2 472	263	840%
Other	360	0	-
Total revenues	5 116	761	572%

Source: Issuer.

The table below presents the currency structure of sales for the 1 st half of 2020 and the 1 st half of 2019.

Position	01/01/2020 -06/30/2020	01/01/2019 -06/30/2019
PLN (Polish zloty)	43%	69%
USD (U.S. Dollar)	57%	31%
Total	100%	100%

Source: Issuer.

Cash flow of the DataWalk Group

The Group's cash flow from operating activities (CFO) in the 1st half of 2020 amounted to PLN -3 552 thousand versus PLN -4 759 thousand in the comparable period of 2019. Significant impact on the CFO in the 1 st half of 2020 came from: i) adjustments of net profit (loss) value by depreciation costs in the amount of PLN 625 thousand; and ii) 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 220 thousand. The receivables level at the end of the second quarter of 2020 is similar to the value on December 31st, 2019, i.e. approx. PLN 3 000 thousand resulting from the receipt of payments for sales made in previous reporting periods and the Group's subsequent invoices issued, for which the payment dates fall after the balance sheet date, June 30th, 2020.

The Group's investment activities (CFI) in the first six months of 2020 amounted to PLN 1 944 thousand, which was particularly influenced by i) expenditure on developing DataWalk software in the amount of PLN 2 021 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, June 30th , 2020, was less than three months.

The Group's financial activities (CFF) in the 1st half of 2020 amounted to PLN 402 thousand, which is mainly due to (i) the Group's receipt of a loan in PLN 639 thousand; and ii) repayment of liabilities due to financial leasing for the total value of PLN 224 thousand.

Position (in thousands of PLN)	01/01/2019 - 06/30/2019	01/01/2018 - 06/30/2018	Change
CFO	-3 552	-4 759	-25%
CFI, including:	1 944	-2 410	-181%
- CAPEX	-2 141	-1 252	71%
CFF	402	10 056	-96%
Total net cash flows	-1 206	2 887	-142%

Source: Issuer.

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

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 June 30th , 2020 and the end of December 2019 (in thousands of PLN).

Assets	06/30/2020	12/31/2019	Change
Intangible assets	7 516	5 863	28%
Trade receivables	2 977	3 074	-3%
Other receivables	703	826	-15%
Financial assets (short-term)	0	4 011	-100%
Cash and cash equivalents	7 962	9 125	-13%
Other assets	1 249	960	30%
Total assets	20 407	23 858	-14%

Source: Issuer.

Equity and liabilities	06/30/2020	12/31/2019	Change
Equity	16 627	20 966	-21%
Trade liabilities	930	809	15%
Other liabilities	2 851	2 084	37%
Total equity and liabilities	20 407	23 858	-14%

Source: Issuer.

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

Position	06/30/2020	12/31/2019
Current ratio	4,1	6,3
Quick Ratio	3,8	6,2
Cash Ratio	2,6	3,3
Debt ratio	18,5%	12,1%
Debt / Equity	0,1	0,0
Debt-to-Equity Ratio	22,7%	13,8%
Working Capital (in thousands PLN)	9 258	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).

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

EXPECTED FINANCIAL SITUATION OF THE DATAWALK GROUP

In the Executive Board's opinion, the achieved increase in sales revenues and the growing value of contracts and the sales funnel are proof that the Group can successfully compete in the market dominated by the Palantir and IBM i2 duopoly.

Bearing in mind the turbulence in the economy caused by the pandemic, the Group invested in development slowly. With a lower increase in costs and the growing value of contracted revenue, the Group could approach the breakeven point at the end of 2020, however, the goal of the Group is to increase the pace of investment and maximize growth dynamics.

In 2020, the Group will focus its efforts on:

• sales the American and Polish market, in the commercial (financial and other) and public sectors, including law enforcement and intelligence agencies,
• continuation of pending patent processes,
• developing DataWalk software in its key areas and expanding the development team,
• expansion of the sales, marketing, and implementation teams in the United States and Poland.

The Group intends to finance its development by reinvesting the proceeds generated as part of its operations and using the equity capital contributed so far. To implement the Group's strategy in the longer term and meet its capital needs, the Issuer will strive to obtain additional cash by issuing shares.

The most important external and internal factors that may affect the Group's operations were presented in the section "Factors likely to affect, in the opinion of DataWalk S.A., the results generated by the capital group in the next quarter and thereafter" of this report.

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.

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

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 14 th, 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 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.

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

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

• 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.

• On September 3 rd , 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 21 st, 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 25 th, 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.

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 situation on the capital market in Poland in the context of obtaining financing,
• 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 1st half 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 6-month period ended June 30, 2020, the DataWalk S.A. Executive Board was as follows:

The Executive Board	Period of performing the function
Paweł Wieczyński	01/01/2020 – 06/30/2020
Krystian Piećko	01/01/2020 – 06/30/2020
Sergiusz Borysławski	01/01/2020 – 06/30/2020

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 June 30, 2020, the composition of the Issuer's Supervisory Board was as follows:

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

During the 6-month period ended June 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 – 30.06.2020
Grzegorz Dymek	01.01.2020 – 30.06.2020
Roman Pudełko	01.01.2020 – 30.06.2020
Rafał Wasilewski	01.01.2020 – 30.06.2020
Filip Paszke	since 30.06.2020*
Piotr Wojciech Bindas	01.01.2020 – 30.06.2020**
Paweł Sobkiewicz	01.01.2020 – 30.06.2020***
Wojciech Szymon Kowalski	01.01.2020 – 30.06.2020****

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, i.e. on August 5, 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 06/30/2020.

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:	3 628 thous. PLN
Revaluation adjustments:	-3 628 thous. PLN
Unit balance sheet value of shares	-

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 June 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 6-month period ended June 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 September 29, 2020 (share in the total number of votes)

Source: Issuer.

Shareholding structure as at 29 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.*1	1 175 000	1 900 000	26,32%	36,61%
Investors Towarzystwo Funduszy Inwestycyjnych S.A.2	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.

² With investment funds managed by the Society, i.e. Investor Parasol FIO and Investor Parasol SFIO. In accordance with current report no. 16/2015 of 16 September 2015.

¹ According to the current report no. 47/2019 of October 31, 2019.

Shareholder structure as at May 22, 2020 (share in the total number of votes)

Source: Issuer.

Shareholding structure as at 22 May 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.*3	1 175 000	1 900 000	26,32%	36,61%
Investors Towarzystwo Funduszy Inwestycyjnych S.A.4	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.

* Shareholder structure of FGP Venture Sp. z o.o. is presented in the description to the table "Shareholder structure as at September 29, 2020" above.

⁴ With investment funds managed by the Society, i.e. Investor Parasol FIO and Investor Parasol SFIO. In accordance with current report no. 16/2015 of 16 September 2015.

³ 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 this report's publication, i.e. as of September 29, 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 29, 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 quarter 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	Member of the Supervisory Board	15 918
Paweł Sobkiewicz	Chairman of the Supervisory Board	900
Wojciech Dyszy	Vice-chairman of the Supervisory Board	1 000
Rafał Wasilewski**	Member of the Supervisory Board	20 000
Piotr Bindas	Member of the Supervisory Board	2 760
Grzegorz Dymek	Member of the Supervisory Board	0
Wojciech Szymon Kowalski	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 May 30, 2019".

** 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

Page | 33

DATAWALK S.A.

SEPARATE CONDENSED INTERIM FINANCIAL STATEMENT

FOR THE 1st HALF OF 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 SEPARA TE COND ENSED IN TER IM FINANCIA L STA TEM ENT F OR THE 1st HA LF OF 2019

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

		ASSETS	06/30/2020	12/31/2019
A.		Non-current assets	8 072	7 776
	I.	Fixed assets	126	66
	II.	Intangible assets	7 516	5 863
	III.	Right-of-use assets	376	577
	IV.	Long-term financial assets	0	1 218
	V.	Long-term receivables	41	41
	VI.	Deferred tax assets	13	11
	VII.	Long-term prepayments	0	0
B.	Current assets		10 494	15 212
	I.	Inventory	0	0
	II.	Trade receivables	2 316	2 014
	III.	Receivables from income tax	0	0
	IV.	Other receivables	696	820
	V.	Financial assets	0	4 011
	VI.	Prepayments	501	138
	VII.	Cash and cash equivalents	6 981	8 230
TOTAL ASSETS			18 567	22 988

		EQUITY AND LIABILITIES	06/30/2020	12/31/2019
A.	Equity		15 997	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	-4 642	-11 193
	V.	Reserve capital	2 771	2 771
B.	Long-term liabilities		53	153
	I.	Other provisions	0	0
	II.	Deferred tax liabilities	13	11
	III.	Lease liabilities	40	142
C.		Short-term liabilities	2 517	2 197
	I.	Trade liabilities	852	641
	II.	Income tax liabilities	0	0
	III.	Lease liabilities	344	438
	IV.	Other liabilities	452	345
	V.	Other provisions	514	474
	VI.	Prepayments	354	300
	TOTAL EQUITY AND LIABILITIES		18 567	22 988

NET ASSET VALUE PER SHARE	06/30/2020	12/31/2019
Net asset value	15 997	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 1st half 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 1st half 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 – 06/30/2020	01/01/2019 – 06/30/2019	04/01/2020 – 06/30/2020*	04/01/2019 – 06/30/2019*
A.	Revenues	3 682	761	2 964	581
B.	Operating costs	5 201	6 634	2 746	3 662
	Materials and energy	64	44	39	27
	Employee benefits	1 545	1 296	814	639
	Amortisation and depreciation	617	286	306	205
	External services	2 783	4 879	1 514	2 725
	Other costs	192	128	73	66
C.	Profit/Loss on sales	-1 519	-5 872	218	-3 081
	Other operating incomes	354	242	278	172
	Other operating costs	3 650	1 526	3 522	766
D.	Operating profit (loss)	-4 815	-7 156	-3 026	-3 675
	Financial incomes	209	43	-156	15
	Financial costs	36	6	29	4
E.	Pre-tax profit (loss)	-4 642	-7 119	-3 211	-3 663
	Income tax	0	0	0	0
	current	0	0	0	0
	deferred	0	0	0	0
F.	Net profit (loss)	-4 642	-7 119	-3 211	-3 663

NET PROFIT (LOSS) ATTRIBUTABLE TO:	01/01/2020 – 06/30/2020	01/01/2019 – 06/30/2019	01/01/2020 – 06/30/2020	01/01/2019 – 06/30/2019
- shareholders of the parent company	-4 642	-7 119	-3 211	-3 663
- non-controlling interests	0	0	0	0

STATEMENT OF COMPREHENSIVE INCOME	01/01/2020 – 01/01/2019 – 06/30/2020 06/30/2019		04/01/2020 – 06/30/2020	04/01/2019 – 06/30/2019
Net profit (loss)	-4 642	-7 119	-3 211	-3 663
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	-4 642	-7 119	-3 211	-3 663

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

PROFIT (LOSS) PER SHARE ATTRIBUTABLE TO:	01/01/2020 – 06/30/2020	01/01/2019 – 06/30/2019	04/01/2020 – 06/30/2020	04/01/2019 – 06/30/2019
Number of shares (pcs.)	4 465 048	3 976 263	4 465 048	4 138 048
Profit (loss) per share (in PLN)	-1,04	-1,79	-0,72	-0,89
Diluted number of shares (pcs.)	4 554 047	4 156 263	4 554 047	4 318 048
Diluted profit (loss) per share (in PLN)	-1,02	-1,71	-0,71	-0,85

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 1st half of 2020 was 4 465 048, while in the 1 st half of 2019 the weighted average number of shares in the Company was 3 976 263.

The weighted average diluted number of shares in the Company in the 1st half of 2020 amounted to 4 554 047, including 88 999 shares under the incentive program, while in the 1st half of 2019 the average amounted 4 156 263, including 180 000 shares under the incentive program.

* Data for the 2nd quarter of 2020 were determined by subtracting from the data for the 1st half of 2020 (reviewed) the data disclosed by the Group in the report for the 1st quarter of 2020.

* Data for the 2nd quarter of 2019 were determined by subtracting from the data for the 1st half of 2019 (reviewed) the data disclosed by the Group in the report for the 1st quarter of 2019.

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	-4 642	-4 642
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 06/30/2020	447	78 746	2 771	-61 325	-4 642	15 997

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	-7 119	-7 119
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	1 401	0	0	1 401
Balance as at 06/30/2019	414	63 792	4 204	-50 132	-7 119	11 158

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

CASH FLOW STATEMENT	01/01/2020 – 06/30/2020	01/01/2019 – 06/30/2019
Net cash flows from operating activities
Net profit (loss)	-4 642	-7 119
Total adjustments, including:	4 142	1 649
- amortisation and depreciation	617	286
- foreign exchange gains (losses)	-43	2
- interest and dividends	-62	-45
- profit (loss) on investing activities, including:	3 629	4
- impairment of financial assets	3 628	4
- other	1	0
- other (non-cash cost of the incentive program)	0	1 401
- income tax of current period	0	0
- income tax paid	0	0
Net cash flow from operating activities before the change in working capital	-500	-5 470
Change in working capital, including:	-100	747
- change in receivables	-179	996
- change in inventories	0	0
- change in liabilities due to employee benefits	165	56
- change in provisions	41	153
- change in short-term liabilities	182	117
- change in other assets	-363	427
- change in deferred income	55	8
- other adjustments (capital increase)	0	-1 011
Net cash generated (used) in operating activities	-600	-4 723
Cash flows from investing activities
Purchases of property, plant and equipment and intangible assets	-2 131	-1 246
Expenses for purchase of shares in related entities	-2 410	0
Interest	75	47
Short-term bank deposits (over 3 months)	4 011	-1 205
Net cash generated (used) in investing activities	-455	-2 403
Cash flows from financing activities
Proceeds from issuance of shares	0	10 066
Payments of liabilities under finance lease agreements	-224	-8
Interest paid	-13	-2
Net cash (used) in financing activities	-237	10 056
Total net cash flows	-1 292	2 929
Change in cash due to foreign currency translation	43	-2
Opening balance of cash	8 230	1 755
Closing balance of cash	6 981	4 682

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

Chairman of the Board Member of the Board Member of the Board

……………………………………… ……………………………………… ……………………………………… Paweł Wieczyński Krystian Piećko Sergiusz Borysławski

Wroclaw, September 29, 2020

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

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