Datawalk S.A. — Interim / Quarterly Report 2021

Nov 29, 2021

DATAWALK CAPITAL GROUP SUMMARY OF THE CONDENSED INTERIM FINANCIAL STATEMENTS

for the 9-month period ended 30th September 2021

November 2021

THE EXECUTIVE BOARD`S LETTER

Dear Investors,

It is strategically important for DataWalk to be successful in both the Commercial and the Public Sectors.

We consciously focused the majority of our very small go-to-market team on the Public market as a starting point. Now we need to add focus on the Commercial sector. The Commercial sector will grow the fastest and can expose us to best in class customers and new use cases as well as ways to continue increasing our value to the market.

During the third quarter of this year we focused on some building blocks for our commercial efforts.

Winning our first 2 commercial customers in North America at the end of last quarter was very significant and marks an important step forward, as we want to balance good growth in federal sector with more exposure to private clients. The currently modest commercial customers list now also includes, apart from a top20 US bank and several European corporations, a technologically advanced decacorn, Grab Holdings.

Growing our use-case list for the Commercial Market by focusing on winning the most advanced customers in the world (so called lighthouse accounts) is currently more important to us than even scaling the revenue and other activities.

In Q3 we spent significant bandwidth reviewing our growth limiters and developed plans to address them. Focus areas included for instance the ability to non-linearly improve our project implementation effectiveness.

Thank you for tracking our Company and please stay tuned for more news to come. In terms of closing new deals, we expect Q4 to be a busy time.

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 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 of the project as revenue). This may specfically reduce the value of the funnel in periods of intense finalization of sales, such as, for example, the fourth quarter of the year. Thus, the sales funnel presented below (stages 4-7 of the commercial process) constitutes an overview for understanding the sales dynamics.

Based on a review of the funnel methodology in first quarter of 2021, we started to include expected renewals of term licenses and maintenance agreements, to better reflect anticipated revenue.

Overall growth of the funnel is expected once we significantly increase our reference pool (especially in North America) and some time after we increase the sales team staffing.

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 to 30 months in the public sector, but of 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 yet 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 above 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 leads that are earlier in the sales process. The values of individual Leads are calculated on the basis of 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 FINANCIAL STATEMENT 10
Consolidated Statement of Financial Position (in thousands of PLN) 10 Consolidated Profit and Loss Account with The Statement of Comprehensive Income (in thousands of PLN) . 12 Consolidated Statement of Changes in Equity (in thousands of PLN) 14 Consolidated Cash Flow Statement (in thousands of PLN) 16
SUMMARY AND ANALYSIS OF THE FINANCIAL RESULTS OF THE DATAWALK CAPITAL GROUP FOR THE FIRST THREE QUARTERS OF 2021 18
IMPACT OF THE COVID-19 EPIDEMIC ON THE GROUP'S OPERATIONS 22
MAJOR EVENTS THAT HAVE AN IMPACT ON THE DATAWALK GROUP'S RESULTS IN THE REPORTING PERIOD 23
SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE AFFECTING THE GROUP'S OPERATIONS 24
FACTORS WHICH, IN THE OPINION OF THE EXECUTIVE BOARD, WILL AFFECT THE ACHIEVED RESULTS IN THE PERSPECTIVE OF AT LEAST THE NEXT QUARTER 25
COMPANY'S AUTHORITIES 26
The Executive Board 26 The Supervisory Board 27
DESCRIPTION OF THE ORGANISATION OF THE DATAWALK CAPITAL GROUP AND CONSOLIDATED ENTITIES 28
DataWalk S.A. 28 DataWalk Inc. 29 Overview of the DataWalk Capital Group 30 Changes in the management rules of the Capital Group and the Company 30
THE SHAREHOLDING STRUCTURE OF THE DATAWALK S.A 31
Shareholder structure as at November 28, 2021 (share in the total number of votes) 31 Shareholder structure as at September 30, 2021 (share in the total number of votes) 32
STRUCTURE OF SHAREHOLDINGS IN DATAWALK S.A. OR RIGHTS ATTACHED TO SHARES, HELD BY MEMBERS OF THE ISSUER'S EXECUTIVE AND SUPERVISORY BOARDS 33
SEPARATE FINANCIAL STATEMENT 35
Separate Statement of Financial Position (in thousands of PLN) 35 Separate Profit and Loss Account with The Statement of Comprehensive Income (in thousands of PLN) 37 Separate Statement of Changes in Equity (in thousands of PLN) 39 Separate Cash Flow Statement (in thousands of PLN) 40
CHANGES IN ACCOUNTING POLICIES USED 41
COMPARABILITY OF DATA REPORTED 41

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 01/01/2021 to 09/30/2021	from 01/01/2020 to 09/30/2020	from 01/01/2021 to 09/30/2021	from 01/01/2020 to 09/30/2020
	in thousands of PLN	in thousands of PLN	in thousands of EUR	in thousands of EUR
Revenues from sales	19 957	8 939	4 378	2 012
Profit/Loss on sales	-5 396	-6 415	-1 184	-1 444
Operating profit (loss)	-4 604	-6 105	-1 010	-1 374
Pre-tax profit (loss)	-4 251	-6 015	-933	-1 354
Net profit (loss)	-4 251	-6 137	-933	-1 382
Total comprehensive income	-4 063	-6 133	-891	-1 381
Weighted average number of ordinary shares (pcs.)	4 886 048	4 465 048	4 886 048	4 465 048
Profit (loss) per share (in PLN/EUR)	-0,87	-1,37	-0,19	-0,31
Net cash generated (used) in operating activities	-9 954	-5 321	-2 184	-1 198
Net cash generated (used) in investing activities	-30 947	689	-6 789	155
Net cash (used) in financing activities	-487	876	-107	197
Total net cash flows	-41 389	-3 756	-9 080	-846

SELECTED FINANCIAL DATA	09/30/2021	12/31/2020	09/30/2021	12/31/2020
	in thousands of PLN	in thousands of PLN	in thousands of EUR	in thousands of EUR
Total assets / equity and liabilities	87 727	91 241	18 936	19 771
Non-current assets	19 988	11 304	4 314	2 449
Current assets	67 739	79 937	14 621	17 322
Equity	75 730	79 793	16 346	17 291
Total liabilities	11 997	11 448	2 590	2 481
Long-term liabilities	925	1 976	200	428
Short-term liabilities	11 071	9 472	2 390	2 052

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 S.A.

SELECTED FINANCIAL DATA	from 01/01/2021 to 09/30/2021	from 01/01/2020 to 09/30/2020	from 01/01/2021 to 09/30/2021	from 01/01/2020 to 09/30/2020
	in thousands of PLN	in thousands of PLN	in thousands of EUR	in thousands of EUR
Revenues from sales	15 876	6 783	3 483	1 527
Profit/Loss on sales	2 835	-1 437	622	-324
Operating profit (loss)	2 988	-4 622	655	-1 041
Pre-tax profit (loss)	-12 823	-4 676	-2 813	-1 053
Net profit (loss)	-12 823	-4 676	-2 813	-1 053
Total comprehensive income	-12 823	-4 676	-2 813	-1 053
Weighted average number of ordinary shares (pcs.)	4 886 048	4 465 048	4 886 048	4 465 048
Profit (loss) per share (in PLN/EUR)	-2,62	-1,05	0,58	-0,24
Net cash generated (used) in operating activities	4 187	-1 511	919	-340
Net cash generated (used) in investing activities	-47 058	-3 085	-10 323	-695
Net cash (used) in financing activities	-484	-351	-106	-79
Total net cash flows	-43 355	-4 948	-9 511	-1 114

SELECTED FINANCIAL DATA	09/30/2021	12/31/2020	09/30/2021	12/31/2020
	in thousands of PLN	in thousands of PLN	in thousands of EUR	in thousands of EUR
Total assets / equity and liabilities	76 218	89 032	16 451	19 293
Non-current assets	16 940	11 241	3 656	2 436
Current assets	59 278	77 791	12 795	16 857
Equity	68 514	81 337	14 789	17 625
Total liabilities	7 704	7 695	1 663	1 668
Long-term liabilities	230	639	50	138
Short-term liabilities	7 474	7 056	1 613	1 529

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	09/30/2021	12/31/2020
1 EUR	4,6329	4,6148

• 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 01/01/2021 to 09/30/2021	from 01/01/2020 to 09/30/2020
1 EUR	4,5585	4,4420

DATAWALK CAPITAL GROUP SUMMARY OF THE CONDENSED INTERIM FINANCIAL STATEMENTS

for the period of 9 months ended 30th September 2021

CONSOLIDA TED FINANCIA L STA TEM ENT

		ASSETS	09/30/2021	12/31/2020
A.		Non-current assets	19 988	11 304
	I.	Fixed assets	344	301
	II.	Goodwill	390	390
	III.	Intangible assets	14 690	9 373
	IV.	Right-of-use assets	856	1 159
	V.	Long-term receivables	0	41
	VI.	Long-term prepayments	3 708	0
	VII.	Deferred tax assets	0	40
B.	Current assets		67 739	79 937
	I.	Inventory	0	0
	II.	Contract assets	261	272
	III.	Trade receivables	5 473	4 290
	IV.	Receivables from income tax	101	95
	V.	Other receivables	1 714	1 062
	VI.	Financial assets	25 000	0
	VII.	Prepayments	2 755	423
	VIII.	Cash and cash equivalents	32 435	73 795
	TOTAL ASSETS		87 727	91 241

Consolidated Statement of Financial Position (in thousands of PLN)

		EQUITY AND LIABILITIES	09/30/2021	12/31/2020
A.	Equity		75 730	79 793
		Equity attributable to shareholders of the parent company	75 730	79 793
	I.	Share capital	489	489
	II.	Share premium	133 859	133 859
	III.	Other capitals	9 965	9 965
	IV.	Profit (loss) from previous years	-67 321	-60 998
	V.	Reserve capital	2 771	2 771
	VI.	Net profit (loss) for the current year	-4 251	-6 323
	VII.	Foreign exchange translation differences	218	30
		Non-controlling interests	0	0
B.	Long-term liabilities		925	1 976
	I.	Deferred tax liabilities	0	40
	II.	Lease liabilities	230	598
	III.	Bank loans and borrowings	615	1 187
	IV.	Other liabilities	80	151
C.		Short-term liabilities	11 071	9 472
	I.	Trade liabilities	2 017	1 479
	II.	Income tax liabilities	0	0
	III.	Lease liabilities	639	564
	IV.	Bank loans and borrowings	9	17
	V.	Other liabilities	1 241	1 014
	VI.	Other provisions	616	1 801
	VII.	Contract liabilities	6 550	4 597
		TOTAL EQUITY AND LIABILITIES	87 727	91 241

NET ASSET VALUE PER SHARE	09/30/2021	12/31/2020
Net asset value	75 730	79 793
Number of shares (pcs.)	4 886 048	4 542 116
Net asset value per share (in PLN)	15,50	17,57
Diluted number of shares (pcs.)	4 975 047	4 631 115
Diluted net asset value per share (in PLN)	15,22	17,23

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 this way for the first three quarters of 2021 was 4 886 048, while in 2020 the weighted average number of shares in the Company was 4 542 116.

The weighted average diluted number of shares in the Company for the first three quarters of 2021 amounted to 4 975 047, including 88 999 shares under the incentive program, while in 2020 the average amounted to 4 631 115, including 88 999 shares under the incentive program.

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

	PROFIT AND LOSS ACCOUNT	01/01/2021 – 09/30/2021	01/01/2020 – 09/30/2020	01/07/2021 – 09/30/2021*	01/07/2020 – 09/30/2020*
	Continuing operations
A.	Revenues	19 957	8 939	5 869	3 823
B.	Operating costs	25 354	15 355	9 199	5 408
	Materials and Energy	122	98	54	28
	Employee benefits	13 062	8 025	4 538	2 769
	Amortisation and depreciation	1 108	937	376	313
	External services	10 236	5 537	3 853	2 047
	Other costs	825	757	378	250
C.	Profit/Loss on sales	-5 396	-6 415	- 3 330	-1 584
	Other operating income	980	296	105	86
	Other operating costs	1	74	0	29
	Profit (loss) from expected credit losses	-187	89	10	-55
D.	Operating profit (loss)	-4 604	-6 105	-3 215	-1 583
	Financial income	397	112	315	-97
	Financial costs	43	22	6	9
E.	Pre-tax profit (loss)	-4 251	-6 015	-2 907	- 1 689
	Income tax	0	122	0	22
F.	Net profit (loss) from continuing operations	-4 251	-6 137	-2 907	-1 712
	Discontinued operations
	Net profit (loss) from discontinued operations	0	0	0	0
G.	Net profit (loss)	-4 251	-6 137	-2 907	-1 712

NET PROFIT (LOSS) ATTRIBUTABLE TO:	01/01/2021 – 09/30/2021	01/01/2020 – 09/30/2020	01/07/2021 – 09/30/2021*	01/07/2020 – 09/30/2020*
- shareholders of the parent company	- 4 251	-6 137	- 2 907	-1 712
- non-controlling interests	0	0	0	0

STATEMENT OF COMPREHENSIVE INCOME	01/01/2021 – 09/30/2021	01/01/2020 – 09/30/2020	01/07/2021 – 09/30/2021*	01/07/2020 – 09/30/2020*
Net profit (loss)	-4 251	-6 137	- 2 907	-1 712
Other comprehensive income	188	4	125	-82
1. Items that will not be reclassified to profit or loss	0	0	0	0
2. Items that will be reclassified to profit or loss:	188	4	125	-82
a) Exchange differences on translating foreign operations	188	4	125	-82
Total comprehensive income	-4 063	-6 133	-2 782	- 1 794

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:	01/01/2021 – 09/30/2021	01/01/2020 – 09/30/2020	01/07/2021 – 09/30/2021*	01/07/2020 – 09/30/2020*
- shareholders of the parent company	-4 063	-6 133	-2 782	-1 794
- non-controlling interests	0	0	0	0

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

PROFIT (LOSS) PER SHARE ATTRIBUTABLE TO:	01/01/2021 – 09/30/2021	01/01/2020 – 09/30/2020	01/07/2021 – 09/30/2021*	01/07/2020 – 09/30/2020*
Continuing operations
Number of shares (pcs.)	4 886 048	4 465 048	4 886 048	4 465 048
Profit (loss) per share (in PLN)	-0,87	-1,37	-0,59	-0,38
Diluted number of shares (pcs.)	4 975 047	4 554 047	4 975 047	4 554 047
Diluted profit (loss) per share (in PLN)	-0,85	-1,35	-0,58	-0,38
Discontinued operations
Number of shares (pcs.)	4 886 048	4 465 048		4 465 048
Profit (loss) per share (in PLN)	0	0	0	0
Diluted number of shares (pcs.)	4 975 047	4 554 047	4 975 047	4 554 047
Diluted profit (loss) per share (in PLN)	0	0	0	0
Continuing and discontinued operations
Number of shares (pcs.)	4 886 048	4 465 048	4 886 048	4 465 048
Profit (loss) per share (in PLN)	-0,87	-1,37	-0,59	-0,38
Diluted number of shares (pcs.)	4 975 047	4 554 047	4 975 047	4 554 047
Diluted profit (loss) per share (in PLN)	-0,85	-1,35	-0,58	-0,38

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 this way for the first three quarters of 2021 was 4 886 048, while in the same period of 2020 the weighted average number of shares in the Company was 4 465 048.

The weighted average diluted number of shares in the Company in the first three quarters of 2021 amounted to 4 975 047, including 88 999 shares under the incentive program, while in the same period of 2020 the average amounted 4 554 047, including 88 999 shares under the incentive program.

* The data for the third quarter of 2021 was determined by subtracting from the data for the first three quarters of 2021 the data presented by the Group in the report for the first half of 2021 (covered by the review).

* The data for the third quarter of 2020 was determined by subtracting from the data for the first three quarters of 2020 the data presented by the Group in the report for the first half of 2020 (covered by the review).

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

STATEMENT OF CHANGES IN EQUITY	Share capital	Share premium	Other capitals	Foreign exchange translation differences	Reserve capital	Profit (loss) from previous years	Net profit (loss) for the current period	Equity attributable to shareholders of the parent company	Equity attributable to non controlling interests	Total equity
Balance as at 01/01/21	489	133 859	9 965	30	2 771	-60 998	-6 323	79 793	0	79 793
Equity increase (decrease)	0	0	0	188	0	- 6 323	2 073	-4 063	0	- 4 063
Total comprehensive income	0	0	0	188	0	0	- 4 251	-4 063	0	-4 063
Net profit (loss)	0	0	0	0	0	0	-4 251	-4 251	0	-4 251
Exchange differences on translating foreign operations	0	0	0	188	0	0	0	188	0	188
Share capital increase	0	0	0	0	0	0	0	0	0	0
Distribution of profit (loss) for previous year	0	0	0	0	0	- 6 323	6 323	0	0	0
Changes in equity resulting from IFRS 2	0	0	0	0	0	0	0	0	0	0
Balance as at 09/30/2021	489	133 859	9 965	218	2 771	-67 321	-4 251	75 730	0	75 730

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

STATEMENT OF CHANGES IN EQUITY	Share capital	Share premium	Other capitals	Foreign exchange translation differences	Reserve capital	Profit (loss) from previous years	Net profit (loss) for the current period	Equity attributable to shareholders of the parent company	Equity attributable to non controlling interests	Total equity
Balance as at 01/01/2020	447	68 781	9 965	0	2 771	-49 953	-11 044	20 966	0	20 966
Equity increase (decrease)	0	0	0	4	0	- 11 044	4 907	- 6 133	0	- 6 133
Total comprehensive income	0	0	0	4	0	0	- 6 137	- 6 133	0	- 6 133
Net profit (loss)	0	0	0	0	0	0	- 6 137	- 6 137	0	- 6 137
Exchange differences on translating foreign operations	0	0	0	4	0	0	4	4	0	4
Share capital increase	0	0	0	0	0	0	0	0	0	0
Distribution of profit (loss) for previous year	0	0	0	0	0	-11 044	11 044	0	0	0
Changes in equity resulting from IFRS 2	0	0	0	0	0	0	0	0	0	0
Balance as at 09/30/2020	447	68 781	9 965	4	2 771	-60 998	- 6 137	14 833	0	14 833

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

Consolidated Cash Flow Statement (in thousands of PLN)

CASH FLOW STATEMENT	01/01/2021 – 09/30/2021	01/01/2020 – 09/30/2020
Cash flows from operating activities	-4 251	-6 137
Net profit (loss)
Total adjustments, including:
- amortisation and depreciation	1 108	937
- foreign exchange gains (losses)	197	4
- interest expenses	43	0
- income from interest and dividends	0	-55
- profit (loss) on investing activities	0	1
- share-based payment (incentive program)	0	0
- income tax of current period	0	122
- income tax paid	0	-122
- change in receivables	-1 794	-3 798
- change in inventories	0	0
- change in provisions	-1 185	402
- change in short-term liabilities	694	643
- change in prepayments	-6 170	-7
- change in contract assets and contract liabilities	2 094	2 689
- other adjustments	-692	0
Net cash generated (used) in operating activities	- 9 954	-5 321
Cash flows from investing activities
Purchase of intangible assets	5 867	3 215
Purchase of property, plant and equipment	132	185
Proceeds from sale of property, plant and equipment	0	0
Proceeds from short term bank deposits (over 3 months)	0	4 011
Short term bank deposits (over 3 months)	25 000	0
Proceeds from governmental subsidies	52	0
Interest received	0	77
Net cash generated (used) in investing activities	-30 947	689
Cash flows from financing activities
Proceeds from issue of share capital	0	0
Proceeds from bank loans and borrowings	0	1 227
Payment of finance lease liabilities	457	334
Interest paid	30	17
Net cash generated (used) in financing activities	-487	876
Total net cash flows	-41 389	-3 756
Opening balance of cash	73 830	9 125
Change in cash due to foreign currency translation	-6	-4
Change in cash balance, net	-41 394	-3 760
Closing balance of cash	32 435	5 365

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

COMMENTARY AND ADDITIONAL INFORMATION FOR THE CONDENSED INTERIM FINANCIAL STATEMENTS 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: 446.504,80 zł w całości wpłacony

Commentary on the financial results of the DataWalk Group

The Group is at the stage of strong growth and consistently implements the adopted development strategy. The investments made successfully convert new projects from the sales funnel into revenues in the United States and other markets. In the first three quarters of 2021, the revenue of the DataWalk Group amounted to PLN 19 957 thousand. It was higher by 123% compared to the results achieved in the first three quarters of 2020, thus exceeding by 27% the level of the entire year 2020, which amounted to PLN 15 722 thousand. The increase in sales value primarily results from the successful completion of several key projects, which started last year, and new ones that translated into contracts from numerous ongoing sales processes.

Once again, it is noteworthy that the revenues achieved on the American market increased. The revenue in the first three quarters of 2021 reached the level of PLN 7 880 thousand and was by 154% higher than in the comparable period of 2020. Thus, in the 9-month period of 2021 DataWalk Inc. achieved in this region the revenue by 31% higher than in the full year 2020. Further sales successes in the United States meant that the share of revenues in this market accounted for 39% of the total Group's revenues, despite the dynamic increase in sales in other markets. It should be also emphasized that in the reporting period, the Group obtained first orders from the commercial sector in the USA, which may positively impact its competitive position. One of the customers, Ally Financial, is ranked 18th on the list of the largest commercial banks in the United States and will use DataWalk to detect and investigate fraud. Another one is Motion Picture Association, which will use DataWalk software to gather information and investigate infringements of digital resources copyright. Building and strengthening the Group's position in the international commercial sector is one of the key elements of the Group's strategy based on dynamic growth and diversification of revenue sources both in the sector aspect (commercial and public market) as well as geographically. The growing number of use cases of the DataWalk platform on the international market by the most advanced clients of the commercial market confirms the effective implementation of this strategy. In addition to acquiring new customers, the Group obtains new orders as part of the continuation of cooperation with existing contractors from the public sector, which confirms the effectiveness of the go-to-market model adopted by the Group and the usefulness of the DataWalk product in leading institutions in this sector. In the reviewed period, the government sector accounted for 76% of the total revenue, while private sector revenue accounted for 24%.

The Group also recorded a significant increase in revenue in the EMEA and APAC regions market. The first three quarters of 2021 revenue amounted to PLN 12 077 thousand, which compared to PLN 5 839 thousand generated in the first three quarters of 2020, represents an increase of 107%. It is worth emphasizing that the revenue generated in the EMEA and APAC regions in the period of nine months of 2021 were 25% higher than the revenue of the Group generated in these markets in the full year 2020. The largest share in the revenue was attributable to projects in Poland, which amounted to PLN 9 898 thousand and was 109% higher than in the first three quarters of 2020. The revenue in other countries in the first three quarters of 2021 amounted to PLN 2 179 thousand, an increase of 99% compared to the first three quarters of 2020. Also in the case of EMEA and APAC regions, in addition to acquiring new customers, the Group extends cooperation with existing contractors by receiving new orders. In the first three quarters of 2021, the government sector accounted for 93% and the private sector for 7% of the revenue.

Moreover, as of the balance sheet date, September 30, 2021, the Group expects to recognize in the following quarters the revenue of PLN 6 550 thousand resulting from the Group's existing contractual obligations. Thereof, the revenue related to the licenses account for PLN 4 191 thousand, implementation services for PLN 1 072 thousand, and technical support services (the so-called "maintenance") PLN 1 174 thousand.

The recorded dynamics of growing revenue is a result of investments in development of resources and operational effectiveness increase in the Group. The DataWalk Group manages the investment process through triggers related to the achieved business results and financial models. The above approach allows to monitor and control the dynamics of costs, which at the current stage of development is mainly influenced by the pace of go-to-market in North America.

The Group's operating costs level in the first three quarters of 2021 was influenced by an increase in the costs of remuneration and external services related to the development and growing scale of the Group's operations, both in the area of increasing the number of specialists in the field of implementation, coding and sales, as well as processes related to international go-to-market.

The Management of the Group expects a further, very dynamic growth in the scale of operations following the development of the data analysis market, in particular based on graph visualization methods. Considering long, sometimes several years long, and very complicated sales processes, the Group continues to focus on working with key clients and, in parallel, develops go-to-market teams in America and Europe, striving to increase the efficiency of sales and implementation processes, while continuing to invest in key resources for the further development of DataWalk software. In opinion of the Management, high competition in the IT market in terms of acquiring resources is not a significant threat to the further implementation of the development strategy, however, it may have an impact on the short-term financial results of the Group due to the growing costs of remuneration, both on the domestic and international market. The Group's Management Board introduces a number of solutions to increase the Group's operational efficiency.

DataWalk Group financial results

The table below presents selected consolidated financial data for the 9-month period ending September 30, 2021 and the comparable period of 2020.

Position	01/01/2021 – 09/30/2021	01/01/2020 – 09/30/2020	Change
Revenues	19 957	8 939	123%
Operating costs	25 354	15 355	65%
Profit/Loss on sales	-5 396	-6 415	-16%
Other operating income	980	296	231%
Other operating costs	1	74	-99%
Profit (loss) from expected credit losses	-187	89	-310%
Operating profit (loss)	-4 604	-6 105	-25%
Net profit (loss) attributable to shareholders of the parent company	-4 251	-6 137	-31%

Source: Issuer.

The table below presents additional selected consolidated financial information for the 9-month period ending September 30, 2021 and the comparable period of 2020.

Position	01/01/2021 – 09/30/2021	01/01/2020 – 09/30/2020	Change
Revenues	19 957	8 939	123%
EBIT	-4 604	-6 105	-25%
Amortisation and depreciation	1 108	937	18%
EBITDA	-3 496	-5 167	-32%
CFObt	-9 954	-5 321	87%
CAPEX	-5 999	-3 400	76%
FCF	-15 953	-8 720	83%
Closing balance of cash	32 435	5 365	505%
Interest debt	1 493	1 506	-1%

Source: Issuer.

EBIT = Operating profit (loss),

EBITDA = EBIT + Amortisation and depreciation,

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

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

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 by products and services

In the first three quarters of 2021, revenue from the sale of licenses amounted to PLN 14 982 thousand, accounted for 75% of the Group's total revenues and were by 225% higher than in the comparable period of 2020. The revenue from implementation services decreased by 29% compared to the first three quarters of 2020, amounting to PLN 2 289 thousand, which accounts for 12% of the Group's total revenue. The value of revenue from technical assistance services (the so-called "maintenance") amounted to PLN 1 199 thousand and was by 229% higher than in the same period last year, which accounted for 6% of the Group's total revenues. The revenue from additional services related to DataWalk software amounted to PLN 1 487 thousand, an increase of 97% compared to the first three quarters of 2020 and accounted for 7% of the Group's total revenues.

The table below presents consolidated revenues in the 9-month period ended September 30, 2021 and in the comparable period of 2020.

Position	01/01/2021 – 09/30/2021	01/01/2020 – 09/30/2020	Change
Licenses sale	14 982	4 611	225%
Implementation services	2 289	3 209	-29%
Technical support	1 199	364	229%
Other	1 487	756	97%
Total	19 957	8 939	123%

Source: Issuer.

The table below presents the currency structure of revenue for the first three quarters of 2021 and the first three quarters of 2020.

Position	01/01/2021 –09/30/2021	01/01/2020 –09/30/2020
PLN (Polish zloty)	50%	53%
USD (U.S. Dollar)	50%	47%
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 2021 amounted to PLN -9 954 thousand and was mainly influenced by: i) adjustment of the net profit (loss) by amortisation referring mainly to development activities in the amount of PLN 1 108 thousand; ii) increase in the receivables balance in the amount of PLN 1 794 thousand resulting from sales increase; iii) decrease of provisions and accruals related mainly to variable costs resulting from sales increase by PLN 1 185 thousand; and iv) increase in the balance of prepayments (in assets) by the amount of PLN 6 170 thousand resulting from the conclusion by the Group of a new individual agreement with the current supplier for the purchase of specialized databases necessary for the DataWalk software operation, the use of which is directly related to the ongoing commercial processes.

The Group's cash flow from investment activities (CFI) in the first three quarters of 2021 amounted to PLN -30 947 thousand and was particularly influenced by: i) capitalised costs of DataWalk software development of PLN 5 867 thousand; and ii) reclassification of bank deposits in the amount of PLN 25 000 thousand from cash and cash equivalents to short-term financial assets, due to their maturity, which as at the balance sheet date, September 30, 2021, was over 3 months.

The Group's cash flow from financing activities (CFF) in the first three quarters of 2021 amounted to PLN -487 thousand which was mainly affected by repayment of lease liabilities by the Issuer.

The table below presents the cash flow of the DataWalk Group in the first three quarters of 2021 and the comparable period of 2020 (in thousands of PLN)

Position	01/01/2021 – 09/30/2021	01/01/2020 – 09/30/2020	Change
CFO	-9 954	-5 321	87%
CFI, including:	-30 947	689	-4 592%
- CAPEX	-5 999	-3 400	76%
CFF	-487	876	-156%
Total net cash flows	-41 389	-3 756	1 002%

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, 2021 and December 31, 2020.

Assets	09/30/2021	12/31/2020	Change
Goodwill	390	390	0%
Intangible assets	14 690	9 373	57%
Right-of-use assets	856	1 159	-26%
Contract assets	261	272	-4%
Trade receivables	5 473	4 290	28%
Other short-term receivables	1 815	1 157	57%
Cash and cash equivalents	32 435	73 795	-56%
Other assets	31 807	805	3851%
Total assets	87 727	91 241	-4%

Source: Issuer.

Equity and liabilities	09/30/2021	12/31/2020	Change
Equity	75 730	79 793	-5%
Trade receivables	2 017	1 479	36%
Bank loans and borrowings	624	1 204	-48%
Lease liabilities	869	1 163	-25%
Contract liabilities	6 550	4 597	42%
Other liabilities	1 937	3 007	-36%
Total equity and liabilities	87 727	91 241	-4%

Source: Issuer.

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

The table below presents selected financial ratios of the DataWalk Group as at September 30, 2021, as well as December 31, 2020.

Position	09/30/2021	12/31/2020
Current ratio	6,1	8,4
Quick Ratio	5,9	8,4
Cash Ratio	2,9	7,8
Debt ratio	14%	13%
Debt / Equity	0,0	0,0
Debt-to-Equity Ratio	16%	14%
Working Capital (in thousands PLN)	56 668	70 465

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 pandemic, administrative measures restricting the freedom of economic activity and affecting the daily operations of enterprises were introduced. The current situation also affects the availability of staff, the possibility of conducting activities related to promotion, sales and implementation and the situation of current and potential Group's customers. Depending on further development of the pandemics, actions taken at regional, national and international levels, may have a significant negative impact on the economic situation in Poland and in the world, which may influence the implementation of the Group's plans and its future financial results.

The Group undertakes actions to minimize the impact of the pandemic, ensuring continuity of development and sales work through remote work. Furthermore, sales of the Group's products and services are conducted to a large extent using remote access channels, which significantly reduces the risk of the negative impact of mobility restrictions on its financial results. It should also be mentioned that as the Group produces virtual goods, it does not have a supply chain. The continuity of work depends on availability and health of the employees. Nevertheless, it should be emphasized that despite the effective mitigation of risks related to restrictions in the world and in Poland, the Group is not able to predict further developments related to the pandemic.

MAJOR EVENTS THAT HAVE AN IMPACT ON THE DATAWALK GROUP'S RESULTS IN THE REPORTING PERIOD

• On March 15th, 2021, the Executive Board of DataWalk S.A. informed that the Company obtained information about earning a patent in the United States Patent and Trademark Office on 2nd March 2021. The title of the Patent is "Systems And Methods For Querying Databases". Obtaining this fifth patent in the US confirms recognition of the uniqueness of the Issuer's technology. Patenting IT solutions, apart from securing Intellectual Property rights for the Company, has very practical value. Obtaining the patent confirms that the technology owned by the Issuer does not interfere with the patent rights of other technologies. This constitutes a tangible measure of progress for the Company's Capital Group in United States.
• On April 26th, 2021, the Executive Board of DataWalk S.A. informed that the Company's subsidiary DataWalk Inc. has obtained a purchase order from the Rhode Island Office of Attorney General "RIAG", for license sale of the DataWalk analytical platform. Rhode Island's Office of Attorney General fights to enhance the economic security of Rhode Island, protect the public safety of the communities and restore the public trust in state government by fighting corruption. Rhode Island's Office of the Attorney General will use DataWalk to for intelligence analysis and investigations in support of their mission.
• On June 4th, 2021, the Executive Board of DataWalk S.A. 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 U.S. Department of State Bureau of International Narcotics and Law Enforcement Affairs (INL). INL's mission is to keep America safe by countering crime, illegal drugs and instability abroad by assisting government agencies of other countries to enhance their operational capabilities. DataWalk software has been selected for such a deployment, where it will be used to aid information, intelligence and data collection; as well as analysis and dissemination, for a national customs organization of a partner country.
• On June 28th, 2021, the Executive Board of DataWalk S.A. informed that the Company's subsidiary DataWalk Inc. has obtained a purchase order from Ally Financial, for license sale of the DataWalk analytical platform. Ally ranks as the 18th largest commercial bank in the United States, and will use DataWalk to detect and investigate frauds.
• On July 1st, 2021, the Executive Board of DataWalk S.A. informed that the Company's subsidiary DataWalk Inc. has completed has completed a sale to the Motion Picture Association for the DataWalk analytical platform. The Motion Picture Association will use DataWalk software in support of gathering intelligence and investigating copyright infringement of digital assets.
• On July 22nd, 2021, the Executive Board of DataWalk S.A. informed that the Company's subsidiary DataWalk Inc. has obtained a purchase order from the Hamilton County (Ohio) Sheriff's Office for license sale of the DataWalk analytical platform. The Hamilton County Sheriff's Office is the chief law enforcement organization for Hamilton County, Ohio, and will utilize DataWalk as a next-generation system for intelligence analysis.
• On August 19th, 2021, the Executive Board of DataWalk S.A. informed that it concluded an extension to a contract with an entity providing cloud computing services based in Warsaw in order to implement the project at the request of the state administration body. This extension expands the scope of the original license and services, increasing the initial scope of analytical support in activities related to the prevention of the development of the pandemic and the effects of COVID-19 with analytics focused on the areas of sanitary inspection. This extension changes the parameters of the license granted to date and the scope of services in relation to the initial order. The Issuer informed about the originally concluded contract in the report No. 8/2020 of May 9, 2020 and in the report No. 49/2020 of December 29, 2020. This follow-on purchase by the current client confirms the effectiveness of the commercialization model adopted by the Company and the usefulness of the DataWalk product in applications related to epidemiological and crisis management in public sector entities.
• On August 26th, 2021, the Executive Board of DataWalk S.A. informed that the Company's subsidiary DataWalk Inc. has obtained a purchase order from DLT Solutions LLC USA ("DLT") for license sale of the DataWalk analytical platform to the United States Department of Defense Office of Inspector General ("DoD OIG"). The Issuer informed about the originally concluded contract in the report No. 30/2020 of September 25,

1. This follow-on purchase by the current client confirms the effectiveness of the commercialization model adopted by the Company and the usefulness of the DataWalk product in leading public sector institutions.

2. On September 15th, 2021, the Executive Board of DataWalk S.A. informed that the Company's subsidiary DataWalk Inc. has obtained a purchase order from United States Department of Labor Office of Inspector General ("DOL OIG") for license sale of the DataWalk analytical platform. The Issuer informed about the originally concluded contract in the report No. 29/2020 of September 21, 2020.This follow-on purchase by the current client confirms the effectiveness of the commercialization model adopted by the Company and the usefulness of the DataWalk product in leading public sector institutions.

3. On September 30th, 2021 The Executive Board of DataWalk S.A informed that the Company's subsidiary, DataWalk Inc., has received a purchase order for expansion of a DataWalk software license from a North American Channel Partner ("Customer"). The end client is a National Intelligence organization. The abovementioned order increases the system configuration previously sold and reported in ESPI 53/2019, dated December 11th, 2019. Expansion of a license by the current client confirms both the effectiveness of the commercialization model adopted by the Company, and the unique value of the DataWalk product in public sector intelligence applications.

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

• On October 15th, 2021, the Executive Board of DataWalk S.A. informed that the Company obtained a purchase order from Statworks Technology ("Partner"), for license sale of the DataWalk analytical platform to GrabTaxi Holdings PTE LTD ("Grab") with headquarters in Singapore. Grab, the largest Asian Super App operator, will utilize DataWalk as a next-generation system for fraud detection and intelligence analysis.

FACTORS WHICH, IN THE OPINION OF THE EXECUTIVE BOARD, WILL AFFECT THE ACHIEVED RESULTS IN THE PERSPECTIVE OF AT LEAST THE NEXT QUARTER

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, data analysis and their usage (Big Data),
• The situation on the insurance market in Poland,
• Increase in the scale and quality of activities aimed at counteracting money laundering and counteracting tax avoidance,
• Automation of data set analysis processes,
• Increasing user-friendliness of tools for analysing data sets,
• Growing number of new company registrations in Poland,
• Pressure to increase salaries on the IT market,
• The course and effects of the SARS-CoV-2 virus causing the COVID-19 disease pandemic in the markets in which the Group operates.

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,
• The level of planned costs related to staff recruitment and purchase of IT services,
• The level of planned investments.

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 September 30, 2021, the DataWalk S.A. Executive Board was as follows:

The Executive Board	Period of performing the function
Paweł Wieczyński	01/01/2021 – 09/30/2021
Krystian Piećko	01/01/2021 – 09/30/2021
Sergiusz Borysławski	01/01/2021 – 09/30/2021

Source: Issuer.

The current Management Board of the Issuer was appointed by the resolutions of the Supervisory Board of June 1, 2021 for a joint, 3-year term of office, which began on July 1, 2021 and will end on the date of approval of the Company's financial statements for 2023 by the General Meeting.

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

The Supervisory Board

On September 30, 2021 and at the date of approval of this report for publication 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, 2021, the composition of the Issuer's Supervisory Board of the Company is as follows:

The Supervisory Board	Period of performing the function
Wojciech Dyszy	01/01/2021 – 09/30/2021
Grzegorz Dymek	01/01/2021 – 09/30/2021
Roman Pudełko	01/01/2021 – 09/30/2021
Rafał Wasilewski	01/01/2021 – 09/30/2021
Filip Paszke	01/01/2021 – 09/30/2021

Source: Issuer.

The current Supervisory Board of the Issuer was appointed for a joint, 3-year term of office, which began on July 1, 2021 and will end on the date of approval of the Company's financial statements for 2023 by the General Meeting.

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
Law:	Polish law, in accordance with the Code of Commercial Companies ("CCC")
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 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 financial year of DataWalk S.A. is the calendar year. The company has no branches.

DataWalk Inc.

Basic information about an entity related by capital with the Issuer as at 09/30/2021.

Name of the entity:	DataWalk Inc.
Country of residence:	United States of America
Legal form:	Incorporated
Register address:	1209 Orange Street, Wilmington, Delaware 19801
Address for correspondence:	2000 Broadway Street, STE 232, Redwood City, CA 94063
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:	July 27, 2016
Value of shares:	20 851 thous. PLN
Revaluation adjustments:	-20 851 thous. PLN
Unit balance sheet value of shares	0 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. Pursuant to the DataWalk Inc. articles of association, the board of directors conducts the affairs of the company and represents the company.

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

Financial data of DataWalk Inc. are fully consolidated and are disclosed in the consolidated financial statements of the DataWalk Capital Group.

Until the date of approval of this report for publication, the structure of the DataWalk Capital Group has not changed.

Overview of the DataWalk Capital Group

DataWalk organizational structure of the Group as of 30 September, 2021 year and in the comparative period:

Source: Issuer.

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

Until the date of this report, there were no changes to the structure of the Capital Group.

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

In the 9-month period ended September 30, 2021 and as at the date of this report, there were no changes regarding the management rules of the DataWalk Group and DataWalk S.A.

THE SHAREHOLDING STRUCTURE OF THE DATAWALK S.A.

Shareholder structure as at November 28, 2021 (share in the total number of votes)

Source: Issuer.

As at the date of approval of this report for publication, i.e. November 28, 2021, the number of shareholders holding, directly or through subsidiaries, at least 5.0% of the total number of votes is as follows:

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 Funds manager by Nationale	400 000	400 000	8,19%	7,13%
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, 2021 (share in the total number of votes)

Source: Issuer.

As at September 30, 2021, i.e. as at the date of publication of the previous periodic report, the number of shareholders holding, directly or through subsidiaries, at least 5.0% of the total number of votes was as follows:

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	24,05%	33,86%
Funds managed by Investors Towarzystwo Funduszy Inwestycyjnych S.A.5	400 000	400 000	8,19%	7,13%
Funds manager by Nationale Nederlanden Powszechne Towarzystwo Emerytalne S.A.6	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.

⁶ According to the current report no. 39/2020 of November 2, 2020.

⁴ According to the current report no. 37//2020 of October 28, 2020.

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

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 28, 2021.

Shareholder	Position	Number of shares	Nominal value of shares (in PLN)
Paweł Wieczyński*	President of the Executive Board	56 115	5 611.50
Krystian Piećko*	Member of the Executive Board	55 650	5 565.00
Sergiusz Borysławski*	Member of the Executive Board	55 680	5 568.00
Roman Pudełko	Chairman of the Supervisory Board	15 918	1 591.80
Wojciech Dyszy	Vice-chairman of the Supervisory Board	1 000	100.00
Rafał Wasilewski**	Member of the Supervisory Board	21 000	2 100.00
Grzegorz Dymek	Member of the Supervisory Board	0	0
Filip Paszke	Member of the Supervisory Board	0	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 28, 2021".

** 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 (an entity closely related to this Member of the Supervisory Board).

The table below presents ownership of shares DataWalk SA by managers and supervisors at September 30, 2021.

Shareholder	Position	Number of shares	Nominal value of shares (in PLN)
Paweł Wieczyński*	President of the Executive Board	56 115	5 611.50
Krystian Piećko*	Member of the Executive Board	55 650	5 565.00
Sergiusz Borysławski*	Member of the Executive Board	55 680	5 568.00
Roman Pudełko	Chairman of the Supervisory Board	15 918	1 591.80
Wojciech Dyszy	Vice-chairman of the Supervisory Board	1 000	100.00
Rafał Wasilewski**	Member of the Supervisory Board	21 000	2 100.00
Grzegorz Dymek	Member of the Supervisory Board	0	0
Filip Paszke	Member of the Supervisory Board	0	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, 2021".

** 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 (an entity closely related to this Member of the Supervisory Board).

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

DATAWALK S.A. SEPARATE CONDENSED INTERIM FINANCIAL STATEMENTS

for the period of 9 months ended 30th September 2021

SEPARA TE FINANCIA L STA TEM ENT

ASSETS			09/30/2021	12/31/2020
A.	Non-current assets		16 940	11 241
	I.	Fixed assets	280	238
	II.	Goodwill	390	390
	III.	Intangible assets	14 690	9 373
	IV.	Right-of-use assets	856	1 159
	V.	Investments in subsidiaries	0	0
	VI.	Long-term receivables	0	41
	VII.	Deferred tax assets	0	40
	VIII.	Long-term prepayments	724	0
B.	Current assets		59 278	77 791
	I.	Inventory	0	0
	II.	Contract assets	261	272
	III.	Trade receivables	3 391	4 648
	IV.	Income tax receivables	0	0
	V.	Other receivables	1 670	1 048
	VI.	Financial assets	25 000	0
	VII.	Prepayments	686	199
	VIII.	Cash and cash equivalents	28 270	71 625
	TOTAL ASSETS		76 218	89 032

Separate Statement of Financial Position (in thousands of PLN)

		EQUITY AND LIABILITIES	09/30/2021	12/31/2020
A.	Equity		68 514	81 337
	I.	Share capital	489	489
	II.	Share premium	133 859	133 859
	III.	Other capitals	9 965	9 965
	IV.	Profit loss from previous years	-65 746	-61 325
	V.	Net profit (loss) for the current year	-12 823	- 4 421
	VI.	Reserve capital	2 771	2 771
B.		Long-term liabilities	230	639
	I.	Deferred tax liabilities	0	40
	II.	Lease liabilities	230	598
C.	Short-term liabilities		7 474	7 056
	I.	Trade liabilities	1 889	1 462
	II.	Income tax liabilities	0	0
	III.	Lease liabilities	639	564
	IV.	Other liabilities	755	573
	V.	Other provisions	549	1 210
	VI.	Contract liabilities	3 642	3 247
	TOTAL EQUITY AND LIABILITIES		76 218	89 032

NET ASSET VALUE PER SHARE	09/30/2021	12/31/2020
Net asset value	68 514	81 337
Number of shares (pcs.)	4 886 048	4 542 116
Net asset value per share (in PLN)	14,02	17,91
Diluted number of shares (pcs.)	4 975 047	4 631 115
Diluted net asset value per share (in PLN)	13,77	17,56

The net asset value per share was calculated in relation to the weighted average number of the Company's shares for the given period. The number of shares calculated this way for the first three quarters of 2021 was 4 886 048, while for the year 2020 the weighted average number of shares in the Company was 4 542 116.

The weighted average diluted number of shares in the Company for the first three quarters of 2021 amounted to 4 975 047, including 88 999 shares under the incentive program, while in 2020 the average amounted to 4 631 115, including 88 999 shares under the incentive program.

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

	PROFIT AND LOSS ACCOUNT	01/01/2021 – 09/30/2021	01/01/2020 – 09/30/2020	01/07/2021 – 09/30/2021*	01/07/2020 – 09/30/2020*
	Continuing operations
A.	Revenues	15 876	6 783	3 825	3 101
B.	Operating costs	13 041	8 220	4 513	3 019
	Materials and energy	118	90	53	27
	Employee benefits	3 501	2 303	1 147	758
	Amortisation and depreciation	1 085	926	367	309
	External services	8 100	4 585	2 849	1 802
	Other costs	237	316	96	124
C.	Profit/Loss on sales	2 835	-1 437	-688	82
	Other operating income	340	296	98	86
	Other operating costs	1	3 570	0	-80
	Profit (loss) from expected credit losses	-187	89	10	-55
D.	Operating profit (loss)	2 988	-4 622	-579	193
	Financial income	349	112	287	-97
	Financial costs	16 160	165	9 406	129
E.	Pre-tax profit (loss)	-12 823	-4 676	-9 697	-34
	Income tax	0	0	0	0
F.	Net profit (loss) from continuing operations	-12 823	-4 676	-9 697	-34
	Discontinued operations
	Profit (loss) from discontinued operations	0	0	0	0
G.	Net profit (loss)	-12 823	-4 676	-9 697	-34

STATEMENT OF COMPREHENSIVE INCOME		01/01/2021 – 01/01/2020 – 09/30/2021 09/30/2020		01/07/2021 – 09/30/2021*	01/07/2020 – 09/30/2020*
	Net profit (loss)	-12 823	-4 676	-9 697	-34
	Other comprehensive income	0	0	0	0
1.	Items that will not be reclassified to profit or loss	0	0	0	0
2.	Items that will be reclassified to profit or loss	0	0	0	0
	Total comprehensive income	-12 823	-4 676	-9 697	-34

PROFIT (LOSS) PER SHARE ATTRIBUTABLE TO:	01/01/2021 – 09/30/2021	01/01/2020 – 09/30/2020	01/07/2021 – 09/30/2021*	01/07/2020 – 09/30/2020*
Continuing operations
Number of shares (pcs.)	4 886 048	4 465 048	4 886 048	4 465 048
Profit (loss) per share (in PLN)	-2,62	-1,05	-1,98	-0,01
Diluted number of shares (pcs.)	4 975 047	4 554 047	4 975 047	4 554 047
Diluted profit (loss) per share (in PLN)	-2,58	-1,03	-1,95	-0,01
Continuing and discontinued operations
Number of shares (pcs.)	4 886 048	4 465 048	4 886 048	4 465 048
Profit (loss) per share (in PLN)	-2,62	-1,05	-1,98	-0,01
Diluted number of shares (pcs.)	4 975 047	4 554 047	4 975 047	4 554 047
Diluted profit (loss) per share (in PLN)	-2,58	-1,03	-1,95	-0,01

The net profit (loss) per share was calculated in relation to the weighted average number of the Company's shares for the given period. The number of shares calculated this way in the first three quarters of 2021 was 4 886 048, while in the first three quarters of 2020 the weighted average number of shares in the Company was 4 465 048.

The weighted average diluted number of shares in the Company in the first three quarters of 2021 amounted to 4 975 047, including 88 999 shares under the incentive program, while in the three quarters of 2020 the average amounted to 4 554 047, including 88 999 shares under the incentive program.

* The data for the third quarter of 2021 was determined by subtracting from the data for the first three quarters of 2021 the data presented by the Company in the report for the first half of 2021 (covered by the review).

* The data for the second quarter of 2020 was determined by subtracting from the data for the first three quarters of 2020 the data presented by the Company in the report for the first half of 2020 (covered by the review) .

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

STATEMENT OF CHANGES IN EQUITY	Share capital	Share premium	Other capitals	Reserve capital	Profit (loss) from previous years	Net profit (loss) for the current period	Total equity
Balance as at 01/01/2021	489	133 859	9 965	2 771	-61 325	-4 421	81 337
Total comprehensive income	0	0	0	0	0	-12 823	-12 823
Share capital increase	0	0	0	0	0	0	0
Distribution of profit (loss) for previous year	0	0	0	0	-4 421	4 421	0
Changes in equity resulting from IFRS 2	0	0	0	0	0	0	0
Balance as at 09/30/2021	489	133 859	9 965	2 771	-65 746	-12 823	68 514

STATEMENT OF CHANGES IN EQUITY	Share capital	Share premium	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	68 781	9 965	2 771	-50 132	-11 193	20 638
Total comprehensive income	0	0	0	0	0	-4 676	-4 676
Share capital increase	0	0	0	0	0	0	0
Distribution of profit (loss) for previous year	0	0	0	0	-11 193	11 193	0
Changes in equity resulting from IFRS 2	0	0	0	0	0	0	0
Balance as at 09/30/2020	447	68 781	9 965	2 771	-61 325	-4 676	15 963

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

Separate Cash Flow Statement (in thousands of PLN)

CASH FLOW STATEMENT	01/01/2021 – 09/30/2021	01/01/2020 – 09/30/2020
Cash flows from operating activities
Net profit (loss)	-12 823	-4 676
Adjustments, including:
- amortisation and depreciation	1 085	926
- foreign exchange gains (losses)	-1	4
- interest expenses	27	0
- income from interest and dividends	0	-60
- profit (loss) on investing activities	16 132	3 651
- share-based payment (incentive program)	0	0
- income tax of current period	0	0
- income tax paid	0	0
- change in receivables	675	-3 852
- change in inventories	0	0
- change in provisions	-661	385
- change in short-term liabilities	609	361
- change in prepayments	-487	-48
- change in contract assets and contract liabilities	-318	1 798
- other adjustments	-52	0
Net cash generated (used) in operating activities	4 187	-1 511
Cash flows from investing activities
Purchase of intangible assets	5 867	3 215
Purchase of property, plant and equipment	110	174
Proceeds from sale of property, plant and equipment	0	0
Purchase of subsidiaries shares, net of cash	16 132	3 784
Proceeds from short term bank deposits (over 3 months)	0	4 011
Short term bank deposits (over 3 months)	25 000	0
Proceeds from governmental subsidies	52	0
Interest received	0	77
Net cash generated (used) in investing activities	-47 058	-3 085
Cash flows from financing activities
Proceeds from issue of share capital	0	0
Proceeds from bank loans and borrowings	0	0
Payment of finance lease liabilities	457	334
Interest paid	27	17
Net cash generated (used) in financing activities	-484	-351
Total net cash flows	-43 355	-4 948
Opening balance of cash	71 625	8 230
Change in cash due to foreign currency translation	1	-4
Change in cash balance, net	-43 355	-4 952
Closing balance of cash	28 270	3 279

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

CHANGES IN ACCOUNTING POLICIES USED

The accounting principles (policies) used by the Issuer are available in the financial statement for the year ended December 31st, 2020 which was published on April 30, 2021.

The accounting principles (policies) used to prepare these consolidated condensed interim financial statements are consistent with those used in the preparation of the Group's financial statements for the year ended December 31st, 2020, except for the one which is described below.

For greater transparency, considering the growing importance of this asset, the Group changed the reporting of 'assets related to accounting valuation of implementation contracts'. In previous periods it was included under "Prepayments" and now it has been transferred to a new statement of financial position item "Contract assets".

The table below presents the impact of the restatement on the interim condensed consolidated financial statement.

Statement of Financial Position item	09/30/2020	Restatement	09/30/2020 (restated)
Contract assets	0	27	27
Prepayments	249	-27	222

The accounting principles (policies) used to prepare these separated condensed interim financial statements are consistent with those used in the preparation of the Company's financial statements for the year ended December 31st, 2020, except for the one which is described below.

For greater transparency, considering the growing importance of this asset, the Company changed the reporting of 'assets related to accounting valuation of implementation contracts'. In previous periods it was included under "Prepayments" and now it has been transferred to a new statement of financial position item "Contract assets".

The table below presents the impact of the restatement on the interim condensed separate financial statement.

Statement of Financial Position item	09/30/2020	Restatement	09/30/2020 (restated)
Contract assets	0	27	27
Prepayments	186	-27	159

At the same time, the name of the statement of financial position item "Prepayments" in short-term liabilities was changed to "Contract liabilities", as the so named item better reflects its nature.

The adopted changes to the accounting principles for the separate financial statements are consistent with the changes assumed for the consolidated financial statements.

COMPARABILITY OF DATA REPORTED

In the annual consolidated financial statements for 2020, the Group changed the presentation of 'losses/profits from to expected credit losses' in the income statement. Thus, these items were subject to the following presentation change in the interim condensed consolidated and separate financial statements for the comparative period from January 1, 2020 to September 30, 2020:

Income statement item	09/30/2020	Restatement	09/30/2020 (restated)
Other operating income	385	-89	296
Profit (loss) from expected credit losses	0	89	89

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

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

Paweł Wieczyński Krystian Piećko Sergiusz Borysławski

Wroclaw, November 28, 2021

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