Datawalk S.A. — Interim / Quarterly Report 2022

Sep 14, 2022

Raport September 2022 DATAWALK CAPITAL GROUP SUMMARY OF THE SEMI-ANNUAL REPORT for the 6-month period ended 30 th June, 2022 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: 513.298,80 zł w całości wpłacony Page | 2 THE EXECUTIVE BOARD`S LETTER Dear Investors, In the first half of the year our growth continued to be limited by insufficient capability and capacity in the Field Engineering teams for pre-sales and for post-sales implementation. We continued to take aggressive action to address these limitations to our growth. Once we fully address the shortfall in field engineering capability, we will regain our target growth rates enabling us to sustain 70%+ CAGR, per our strategy. From a longer-term perspective, per our Strategy Plan, we assessed our status relative to Chapter 3 goals. Key takeaways and observations from this analysis are shared further on in this document and are very encouraging and positive. We are in a good position relative to the development of the Graph and Hybrid Analytics market and use cases. The ca. 30% growth in revenue in 1H 2022 vs 1H 2021 is well below our goals. Insufficient post-sales engineering capability resulted in slower project execution and delays in the ability to do pre-sales for new projects as well as generate the needed number of success stories. To address these shortfalls, we continued the focus on growing and improving the Field Engineering function. Staffing for Field Engineering worldwide (including pre and post- sales) grew from 22 people at the start of 2022 to 37 people today. We are focusing heavily on the onboarding, training and continuing development of the team and their processes. We continued to achieve our “Chapter 3” goals of proving our technical and product superiority in the most demanding geographies such as North America. Recent successes and feedback from customers continue to confirm our Product and Technology advantages as well as the ability to design solutions for both Commercial and Public customers in the most advanced markets. The effort to re-shape our pre- and post-sales engineering was enabled by the funding ingested in Q4 2020 with tangible improvement in approaches starting to be demonstrated on some of our projects in 2H 2021. The positive impact of changes in approaches, tools, and training has been confirmed. The next step is to spread out the use of the new approaches and tools to the full team and gain cycles of learning (or cycles of experience). We are seeing enough promising signs that we will re-start recruitment for growth in our Sales Staff (Account Managers) in 2H 2022. In 2023 we will have sufficient pre- and post-sales resources to support both our direct customer work as well as be able to start increasing the investment in training and enablement of Partners. Our growth rate will increase significantly once we are no longer limited by the capacity in Field Engineering. Having a more streamlined and scalable go-to-market will be a key factor for our future growth and overall success. It is clear to us that the market potential and our product and technology are not limiters to growth. Addressing the scaling of go-to-market is the objective for Chapter 4 of our Strategy, where we will need to scale both via direct work with end customers as well as with Partners. In order to enable Partners, we need a fully trained and fully capable and scalable Field Engineering function, that is why we are investing there before adding additional Account Manager (Sales) headcount in 2H 2022. Please look at the information and notes regarding our Chapter 3 in our quest to become a leader in Graph Analytics. Yours faithfully, Paweł Wieczyński, CEO 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: 513.298,80 zł w całości wpłacony Page | 3 DataWalk Strategy: Chapter 3 summary                                                                                                                                                                   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: 513.298,80 zł w całości wpłacony Page | 4 Key data on Chapter 3 execution: 1. We have won 21 world-class customers, including 4 Fortune 500. 38% of them are from the commercial space, 62% are public sector customers. 2. 45% of our total customers are commercial sector, 55% public, but dominant majority of revenue has been from the public sector so far. 3. We have 79% win rate for Fully Qualified Deals in North America and 82% in the EMEA region. 4. Knowledgeable customers can achieve Breakthrough results with our Platform: a. Fraud detection in insurance - 90%+ accuracy, which along with throughput increase translates to >2x fraud prevention in dollars. b. Fraud detection in banking - 90%+ accuracy achieved in several months, while the market standard is 20-30%. 5. We successfully predicted graph analytics moving into the mainstream (we called it network analytics in 2014). 6. Our Hybrid and Graph architecture is a good fit with the market trend to combine Graph Analytics and AI. Data Points: a. Gartner reviews and reports on trends. b. Customer feedback, especially from North America, where we were compared to Palantir and solutions custom built on leading graph databases. c. Benchmarks to leading relational architectures and graph databases. 7. We continue to be very investment efficient. Until the end of July the Company has consumed only $26,5M of raised funds, a small fraction of what would be typical for a company with our product capability. 8. Demonstrated attractiveness of the business model - with our ca. 80% margins for license sales we could become profitable if we were willing to sacrifice growth (several proof points in the past financials). 9. We paid a price for our conservative go-to-market spending growth. Example: 90%+ of revenue in 2021 sales came from the 4 sales people we had in 2019. 10. We have successfully confirmed key assumptions of our business model: a. the initial sale of $1 translates to $2-5 of revenue from any given customer from maintenance + up- sell + cross-sell. b. ROI which customers can achieve on graph analytics is very attractive compared to other enterprise software projects. c. (Gartner) 87% of data science projects never make it into production. (Venturebeat) In 2016, Gartner estimated that 60% of big data projects failed. Meanwhile we have delivered all of the projects we have signed up for. 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: 513.298,80 zł w całości wpłacony Page | 5 Why are we not winning more customers and achieving higher growth yet? 1. In 2019 we hoped to scale the pre-sales and post-sales engineering team from 12 at the time, but in 2021 we still had 13. We grew by ca. 3X in headcount in this area at the end of 2021 and the first half of 2022 (total 37 now), most of them are still in training and onboarding. 2. We had no references in North America from world-class customers until 2022. Reasons: a. We started with the public sector in 2019 - sales cycles are longer there and implementations are 2-4x longer due to government regulations and processes. b. We only won our first commercial customers in North America in the summer of 2021. We had the first commercial references there on the verge of 2021/2022. 3. We got to 10+ salespeople in 2022 only. Limiters: a. very limited funding till Oct’20. b. lack of pre-sales and post-sales engineering capacity. c. lack of (or yet very limited) references in US. 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 campaigns or first business partners). 2. Identification of the situation - this stage ends when we established contact with the appropriate representatives of the client. 3. Validation of customer needs and initial verification of the opportunity. 4. Full Qualification of the opportunity. 5. Engagement with the full client project team (including decision-makers and senior management) in substantive discussions. For example: a pilot implementation may take place during this phase. 6. Purchase negotiations and procedures (initiation of a public tender procedure if applicable). 7. Finalization of the terms of the contract and award of the tender. 8. Execution of implementation and 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 and a 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). 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 the first quarter of 2021, we started to include expected renewals of term licenses and maintenance agreements, to better reflect anticipated revenue. The overall growth of the funnel is expected to accelerate once we significantly increase our reference pool (especially in North America) and sometime after we increase the sales team staffing. 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: 513.298,80 zł w całości wpłacony Page | 6 Source: Issuer. 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 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 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 key aspects affecting commercial processes in North America relate to the acquisition of the first references among customers such as the intelligence and 6 US ministries (including the Department of Defense and the Department of Justice), as well as the acquisition of the first customers in the commercial sector in 2021 (Ally Bank, MPA, GTL). The first significant reference effects from deployments with the above clients began to appear in 2022. $0 $5 $10 $15 $20 $25 Q4.19 Q1.20 Q2.20 Q3.20 Q4.20 Q1.21 Q2.21 Q3.21 Q4.21 Q1.22 Q2.22 Current Sales prospects - Qualified+ [mln USD] North and South America Rest of the World Total 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: 513.298,80 zł w całości wpłacony Page | 7 The table of contents SELECTED CONSOLIDATED FINANCIAL DATA OF THE DATAWALK CAPITAL GROUP ........................ 8 SELECTED SEPARATE FINANCIAL DATA DATAWALK S.A. ......................................................................... 9 CONSOLIDATED FINANCIAL STATEMENT .................................................................................................... 12 Consolidated Statement of Financial Position (in thousands of PLN) ................................................................. 12 Consolidated Profit and Loss Account with The Statement of Comprehensive Income (in thousands of PLN) . 14 Consolidated Statement of Changes in Equity (in thousands of PLN) ................................................................. 16 Consolidated Cash Flow Statement (in thousands of PLN) ................................................................................. 18 FINANCIAL RESULTS - SUMMARY AND ANALYSIS ..................................................................................... 20 DATAWALK GROUP'S CASH-SETTLED INCENTIVE PROGRAM ................................................................. 26 IMPACT OF THE COVID-19 EPIDEMIC ON THE GROUP'S OPERATIONS .................................................... 31 IMPACT OF THE POLITICAL AND ECONOMIC SITUATION IN UKRAINE .................................................. 31 MAJOR EVENTS THAT HAVE AN IMPACT ON THE DATAWALK GROUP'S RESULTS IN THE REPORTING PERIOD ............................................................................................................................................ 32 SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE AFFECTING THE GROUP'S OPERATIONS ................................................................................................................................................................................. 35 FACTORS EXPECTED TO AFFECT FURTHER GROUP’S DEVELOPMENT .................................................. 39 COMPANY'S AUTHORITIES ................................................................................................................................ 40 The Executive Board ............................................................................................................................................ 40 The Supervisory Board ........................................................................................................................................ 41 DESCRIPTION OF THE ORGANISATION OF THE DATAWALK CAPITAL GROUP AND CONSOLIDATED ENTITIES ................................................................................................................................................................ 42 DataWalk S.A. ..................................................................................................................................................... 42 DataWalk Inc. ...................................................................................................................................................... 43 Overview of the DataWalk Capital Group ........................................................................................................... 44 Changes in the management rules of the Capital Group and the Company ......................................................... 44 THE SHAREHOLDING STRUCTURE OF THE DATAWALK S.A. .................................................................... 45 Shareholder structure as at September 14, 2022 (share in the total number of votes) .......................................... 45 Shareholder structure as at May 24, 2022 (share in the total number of votes) ................................................... 46 STRUCTURE OF SHAREHOLDINGS IN DATAWALK S.A. OR RIGHTS ATTACHED TO SHARES, HELD BY MEMBERS OF THE ISSUER’S EXECUTIVE AND SUPERVISORY BOARDS ................................................ 47 SEPARATE FINANCIAL STATEMENT ............................................................................................................... 49 Separate Statement of Financial Position (in thousands of PLN) ........................................................................ 49 Separate Profit and Loss Account with The Statement of Comprehensive Income (in thousands of PLN) ......... 51 Separate Statement of Changes in Equity (in thousands of PLN) ........................................................................ 53 Separate Cash Flow Statement (in thousands of PLN) ........................................................................................ 54 CHANGES IN ACCOUNTING POLICIES USED ................................................................................................. 55 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: 513.298,80 zł w całości wpłacony Page | 8 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 01/01/2022 to 06/30/2022 from 01/01/2021 to 06/30/2021 from 01/01/2022 to 06/30/2022 from 01/01/2021 to 06/30/2021 in thousands of PLN in thousands of PLN in thousands of EUR in thousands of EUR Revenues from sales 18 162 14 088 3 912 3 098 Profit/Loss on sales -113 725 -2 066 -24 496 -454 Operating profit (loss) -113 585 -1 389 -24 465 -305 Pre-tax profit (loss) -113 403 -1 344 -24 426 -295 Net profit (loss) -77 742 -1 344 -16 745 -295 Total comprehensive income -76 992 -1 281 -16 584 -282 The weighted average number of ordinary shares (pcs.) 4 886 048 4 886 048 4 886 048 4 886 048 Profit (loss) per share (in PLN/EUR) -15,91 -0,27 -3,43 -0,06 Net cash generated (used) in operating activities -7 403 -11 159 -1 595 -2 454 Net cash generated (used) in investing activities -6 241 -3 909 -1 344 -860 Net cash (used) in financing activities -352 -323 -76 -71 Total net cash flows -13 996 -15 391 -3 015 -3 385 SELECTED FINANCIAL DATA 06/30/2022 12/31/2021 06/30/2022 12/31/2021 in thousands of PLN in thousands of PLN in thousands of EUR in thousands of EUR Total assets/equity and liabilities 120 679 89 052 25 783 19 362 Non-current assets 63 613 23 838 13 591 5 183 Current assets 57 066 65 214 12 192 14 179 Equity 1 469 78 462 314 17 059 Total liabilities 119 210 10 590 25 469 2 302 Long-term liabilities 107 050 689 22 871 150 Short-term liabilities 12 159 9 901 2 598 2 153 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: 513.298,80 zł w całości wpłacony Page | 9 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 01/01/2022 to 06/30/2022 from 01/01/2021 to 06/30/2021 from 01/01/2022 to 06/30/2022 from 01/01/2021 to 06/30/2021 in thousands of PLN in thousands of PLN in thousands of EUR in thousands of EUR Revenues from sales 13 092 12 051 2 820 2 650 Profit/Loss on sales -108 3 523 -23 775 Operating profit (loss) 32 3 567 7 784 Pre-tax profit (loss) -7 940 -3 126 -1 710 -687 Net profit (loss) -8 376 -3 126 -1 804 -687 Total comprehensive income -8 376 -3 126 -1 804 -687 The weighted average number of ordinary shares (pcs.) 4 886 048 4 886 048 4 886 048 4 886 048 Profit (loss) per share (in PLN/EUR) -1,71 -0,64 -0,37 -0,14 Net cash generated (used) in operating activities -5 562 -4 641 -1 198 -1 021 Net cash generated (used) in investing activities -8 376 -10 623 -1 804 -2 336 Net cash (used) in financing activities -352 -320 -76 -70 Total net cash flows -14 291 -15 584 -3 078 -3 427 SELECTED FINANCIAL DATA 06/30/2022 12/31/2021 06/30/2022 12/31/2021 in thousands of PLN in thousands of PLN in thousands of EUR in thousands of EUR Total assets/equity and liabilities 70 528 78 023 15 068 16 964 Non-current assets 25 551 21 172 5 459 4 603 Current assets 44 977 56 851 9 609 12 361 Equity 62 063 70 440 13 260 15 315 Total liabilities 8 464 7 583 1 808 1 649 Long-term liabilities 182 67 39 15 Short-term liabilities 8 282 7 516 1 769 1 634 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: 513.298,80 zł w całości wpłacony Page | 10 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 06/30/2022 12/31/2021 1 EUR 4,6806 4,5994 • 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 the 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 01/01/2022 from 01/01/2021 to 06/30/2022 to 06/30/2021 1 EUR 4,6427 4,5472 DATAWALK CAPITAL GROUP SUMMARY OF THE CONDENSED CONSOLIDATED SEMI-ANNUAL FINANCIAL STATEMENT for the 6-month period ended 30 th June 2022 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: 513.298,80 zł w całości wpłacony Page | 12 CONSOLIDAT ED FINANCIAL STATEMENT Consolidated Statement of Financial Position (in thousands of PLN) ASSETS 06/30/2022 12/31/2021 A. Non-current assets 63 613 23 838 I. Fixed assets 548 472 II. Goodwill 390 390 III. Intangible assets 20 636 15 496 IV. Right-of-use assets 488 698 V. Long-term receivables 0 0 VI. Long-term prepayments 2 325 3 217 VII. Deferred tax assets 39 227 3 565 B. Current assets 57 066 65 214 I. Contract assets 5 221 557 II. Trade receivables 8 395 7 356 III. Receivables from income tax 106 96 IV. Other receivables 1 826 2 542 V. Financial assets 90 0 VI. Prepayments 3 780 3 013 VII. Cash and cash equivalents 37 648 51 650 TOTAL ASSETS 120 679 89 052 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: 513.298,80 zł w całości wpłacony Page | 13 EQUITY AND LIABILITIES 06/30/2022 12/31/2021 A. Equity 1 469 78 462 Equity attributable to shareholders of the parent company 1 469 78 462 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 -68 970 -67 321 V. Reserve capital 2 771 2 771 VI. Net profit (loss) for the current year -77 742 -1 648 VII. Foreign exchange translation differences 1 097 347 Non-controlling interests 0 0 B. Long-term liabilities 107 050 689 I. Deferred tax liabilities 0 0 II. Lease liabilities 102 67 III. Bank loans and borrowings 699 622 IV. Incentive program liabilities 106 249 0 C. Short-term liabilities 12 159 9 901 I. Trade liabilities 2 232 2 091 II. Income tax liabilities 0 0 III. Lease liabilities 401 644 IV. Bank loans and borrowings 20 18 V. Other liabilities 2 481 1 596 VI. Other provisions 1 884 1 245 VII. Contract liabilities 5 142 4 307 TOTAL EQUITY AND LIABILITIES 120 679 89 052 NET ASSET VALUE PER SHARE 06/30/2022 12/31/2021 Net asset value 1 469 78 462 A number of shares (pcs.) 4 886 048 4 886 048 Net asset value per share (in PLN) 0,30 16,06 A diluted number of shares (pcs.) 4 975 074 4 975 047 Diluted net asset value per share (in PLN) 0,30 15,77 The net asset value per share was calculated in relation to the number of the Company's shares at the balance sheet date. The diluted number of shares in the Company on June 30, 2022, and on December 31, 2021 amounted to 4 975 047, including 88 999 shares under the incentive program. 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: 513.298,80 zł w całości wpłacony Page | 14 Consolidated Profit and Loss Account with The Statement of Comprehensive Income (in thousands of PLN) PROFIT AND LOSS ACCOUNT 01/01/2022 – 06/30/2022 01/01/2021 – 06/30/2021 04/01/2022 – 06/04/2022 04/01/2021 – 06/30/2021 Continuing operations A. Revenues 18 162 14 088 13 979 10 623 B. Operating costs 131 888 16 155 120 234 7 359 Materials and Energy 415 68 197 41 Employee benefits 119 205 8 524 113 163 4 091 Amortization and depreciation 1 320 732 675 374 External services 10 244 6 383 5 730 2 633 Other costs 703 447 468 220 C. Profit/Loss on sales -113 725 -2 066 -106 254 3 265 Other operating income 182 875 114 745 Other operating costs 39 1 38 0 Loss (profit) from expected credit losses 3 197 2 16 D. Operating profit (loss) -113 585 -1 389 -106 180 3 994 Financial income 206 82 -80 -318 Financial costs 24 37 13 15 E. Pre-tax profit (loss) -113 403 -1 344 -106 273 3 662 Income tax -35 661 0 -35 817 0 F. Net profit (loss) from continuing operations -77 742 -1 344 -70 456 3 662 Discontinued operations 0 0 0 0 Net profit (loss) from discontinued operations 0 0 0 0 G. Net profit (loss) -77 742 -1 344 -70 456 3 662 NET PROFIT (LOSS) ATTRIBUTABLE TO: 01/01/2022 – 06/30/2022 01/01/2021 – 06/30/2021 04/01/2022 – 06/04/2022 04/01/2021 – 06/30/2021 - shareholders of the parent company -77 742 -1 344 -70 456 3 662 - non-controlling interests 0 0 0 0 STATEMENT OF COMPREHENSIVE INCOME 01/01/2022 – 06/30/2022 01/01/2021 – 06/30/2021 04/01/2022 – 06/30/2022 04/01/2021 – 06/30/2021 Net profit (loss) -77 742 -1 344 -70 456 3 662 Other comprehensive income 750 63 662 75 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: 750 63 662 75 a) Exchange differences in translating foreign operations 750 63 662 75 Total comprehensive income -76 992 -1 281 -69 794 3 737 TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: 01/01/2022 – 06/30/2022 01/01/2021 – 06/30/2021 04/01/2022 – 06/30/2022 04/01/2021 – 06/30/2021 - shareholders of the parent company -76 992 -1 281 -69 794 3 737 - non-controlling interests 0 0 0 0 DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 513.298,80 zł w całości wpłacony Page | 15 PROFIT (LOSS) PER SHARE ATTRIBUTABLE TO: 01/01/2022 – 06/30/2022 01/01/2021 – 06/30/2021 04/01/2022 – 06/30/2022 04/01/2021 – 06/30/2021 Continuing operations A number of shares (pcs.) 4 886 048 4 886 048 4 886 048 4 886 048 Profit (loss) per share (in PLN) -15,91 -0,27 -14,42 0,75 A diluted number of shares (pcs.) 4 975 047 4 975 047 4 975 047 4 975 047 Diluted profit (loss) per share (in PLN) -15,63 -0,27 -14,17 0,74 Discontinued operations A number of shares (pcs.) 4 886 048 4 886 048 4 886 048 4 886 048 Profit (loss) per share (in PLN) 0 0 0 0 A diluted number of shares (pcs.) 4 975 047 4 975 047 4 975 047 4 975 047 Diluted profit (loss) per share (in PLN) 0 0 0 0 Continuing and discontinued operations A number of shares (pcs.) 4 886 048 4 886 048 4 886 048 4 886 048 Profit (loss) per share (in PLN) -15,91 -0,27 -14,42 0,75 A diluted number of shares (pcs.) 4 975 047 4 975 047 4 975 047 4 975 047 Diluted profit (loss) per share (in PLN) -15,63 -0,27 -14,17 0,74 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 half of 2022 and the first half of 2021 was 4 886 048. The weighted average diluted number of shares in the Company in the first quarter of 2022 and the first quarter of 2021 amounted to 4 975 047, including 88 999 shares under the incentive program. * The data for the second quarter of 2022 was determined by subtracting from the data for the first half of 2022 (covered by the review) the data presented by the Company in the report for the first quarter of 2022. * The data for the second quarter of 2021 was determined by subtracting from the data for the first half of 2021 (covered by the review) the data presented by the Company in the report for the first quarter of 2021. 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: 513.298,80 zł w całości wpłacony Page | 16 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 01/01/22 489 133 859 9 965 347 2 771 -67 321 - 1 648 78 462 0 78 462 Equity increase (decrease) 0 0 0 750 0 - 1 648 - 76 093 - 76 992 0 - 76 992 Total comprehensive income 0 0 0 750 0 0 - 77 742 - 76 992 0 - 76 992 Net profit (loss) 0 0 0 0 0 0 - 77 742 - 77 742 0 -77 742 Exchange differences in translating foreign operations 0 0 0 750 0 0 0 750 0 750 Share capital increase 0 0 0 0 0 0 0 0 0 0 Distribution of profit (loss) for the previous year 0 0 0 0 0 -1 648 1 648 0 0 0 Changes in equity resulting from IFRS 2 0 0 0 0 0 0 0 0 0 0 Balance as at 06/30/2022 489 133 859 9 965 1 097 2 771 -68 970 - 77 742 1 469 0 1 469 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: 513.298,80 zł w całości wpłacony Page | 17 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 01/01/2021 489 133 859 9 965 30 2 771 -60 998 -6 323 79 793 0 79 793 Equity increase (decrease) 0 0 0 63 0 -6 323 4 980 -1 281 0 -1 281 Total comprehensive income 0 0 0 63 0 0 -1 344 -1 281 0 -1 281 Net profit (loss) 0 0 0 0 0 0 -1 344 -1 344 0 -1 344 Exchange differences in translating foreign operations 0 0 0 63 0 0 0 63 0 63 Share capital increase 0 0 0 0 0 0 0 0 0 0 Distribution of profit (loss) for the 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 06/30/2021 489 133 859 9 965 93 2 771 -67 321 -1 344 78 512 0 78 512 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: 513.298,80 zł w całości wpłacony Page | 18 Consolidated Cash Flow Statement (in thousands of PLN) CASH FLOW STATEMENT 01/01/2022 – 06/30/2022 01/01/2021 – 06/30/2021 Cash flows from operating activities Net profit (loss) -77 742 -1 344 Adjustments, including: - amortization and depreciation 1 320 732 - foreign exchange gains (losses) 806 -357 - interest expenses 24 30 - income from interest and dividends -5 0 - profit (loss) on investing activities 0 0 - share-based payment (incentive program) 0 0 - income tax of current period 0 0 - income tax paid 0 0 - change in receivables -323 -10 412 - change in inventories 0 0 - change in provisions 639 -47 - change in incentive program liabilities 106 249 0 - change in liabilities other than incentive program 1 026 147 - change in prepayments -35 536 258 - change in contract assets and contract liabilities -3 829 520 - other adjustments -32 -686 Net cash generated (used) in operating activities -7 403 -11 159 Cash flows from investing activities Purchase of intangible assets 6 018 3 853 Purchase of property, plant, and equipment 170 108 Proceeds from the sale of property, plant and equipment 0 0 Short term bank deposits (over 3 months) 90 0 Proceeds from governmental subsidies 32 52 Interest received 5 0 Net cash generated (used) in investing activities -6 241 -3 909 Cash flows from financing activities Proceeds from bank loans and borrowings 0 0 Payment of finance lease liabilities 341 301 Interest paid 11 22 Net cash generated (used) in financing activities -352 -323 Total net cash flows -13 996 -15 391 Opening balance of cash 51 650 73 809 Change in cash due to foreign currency translation -6 -126 Change in the cash balance, net -14 002 -15 517 Closing balance of cash 37 648 58 291 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: 513.298,80 zł w całości wpłacony Page | 19 COMMENTARY AND ADDITIONAL INFORMATION FOR THE CONDENSED 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: 513.298,80 zł w całości wpłacony Page | 20 FINANCIAL RESULTS - SUMMARY AND ANALYSIS The Group is at an intense growth stage, and the incurred investments in development are yielding further results in the conversion of projects from the sales funnel to revenue. In the first half of 2022, the DataWalk Group's revenue value amounted to PLN 18,162 thousand, 29% higher than in the first half of 2021. It is important to note that Q2 2022 alone was the best quarter in achieving revenues (PLN 13,979 thousand) in the Group's history. The sales value increase primarily results from successfully finalized Group's projects in its business segments and expanding the DataWalk system and licenses with existing customers. In addition, the increase in the USD revenue contributed to the Group's total sales results in the Group's functional currency revenue growth. The increase in revenues in the Americas markets was 125% higher than in the comparable period of 2021, reaching PLN 8,453 thousand in the first half of 2022. For DataWalk Inc., Q2 2022 alone was the second-best quarter in the company's history, followed by Q4 2021. The U.S. team is steadily building DataWalk's position. While operations are still in the early stages of market capture, we are seeing another period in which sales generate significant revenue for the Group. Given that the U.S. market is a strategic market for the Group, it is noteworthy that the first half of 2022 was a period in which revenues from the Americas region accounted for nearly half (47%) of the Group's revenues. Additionally, the change in the sales structure between the commercial and public sectors is worth mentioning. With the acquisition of new customers from the commercial sector, the commercial sector accounted for 52% of the subsidiary's revenues in the first half of 2022, compared to 37% in the comparable period. In the first half of 2022, the Group recorded a slight decrease in revenues in other markets (EMEA and APAC regions), for which the value amounted to PLN 9,709 thousand, a 6% decrease compared to PLN 10,337 thousand in revenues generated in the comparable period of 2021. In the analyzed period, the largest share of revenue (67%) went to projects implemented in Poland, which amounted to PLN 6,503 thousand and was 26% lower than in the first half of 2021. It is noteworthy that despite the lower share of projects from outside Poland (33%) in revenues, the Group recorded a 103% increase in sales in other countries from the EMEA and APAC regions in the first half of 2022 compared to the first half of 2021. It is essential for the Group because building and strengthening the Group's position in the international market is one of the crucial elements of the Group's strategy based on dynamic growth and diversification of revenue sources, including geographically. The largest share of revenues from the EMEA and APAC region in the first half of 2022 went to the government sector, which accounted for 74%. In the comparable period, it was 97%. Moreover, as of the balance sheet dated June 30, 2022, the Group expects to recognize revenues in the following quarters in the amount of PLN 5,142 thousand resulting from the Group's obligation to provide customers with the contracted licenses or services. These revenues mainly relate to the sale of technical support services (the so-called "maintenance") in the amount of PLN 4,141 thousand and implementation services of PLN 840 thousand. The DataWalk Group manages the investment process through triggers linked to achieved business results and financial models. The above approach allows for monitoring and steering the dynamics of the cost, and capital expenditures, which at the current stage of development is mainly influenced by the pace of go-to-market in North America. In the first half of 2022, the Group implemented an incentive program using cash-settled share-based payment transactions. The purpose of the program is to attract and retain members of key personnel for both DataWalk S.A. and its subsidiaries by creating additional market-attractive tools to fully identify and identify key personnel within the Group, and its long-term goals, motivating them to pay special attention to the Group's long-term performance, maintain the dynamic growth of its value, and connect the interests of these individuals to the interests of the Group and consequently, the interests of its shareholders. The goal of the Incentive Program is to link the long-term value of the Company and its Group with the long-term goals of the key personnel. As a result of the conclusion of agreements with participants in the second quarter, the Group estimated the value of and recognized the cost and liability arising from the ongoing program at a total amount of PLN 106,249 thousand, which accounted for 81% of the Group's operating expenses in the first half of 2022 and 93% of EBITDA. The real value of the incentive program is not known. The value of the cash amounts payable under the incentive program depends, among other things, on the fulfillment of conditions dependent on the participants, primarily on the occurrence of a "sale transaction" defined in the program's regulations and the value of this transaction. Accordingly, the program implementation at this time is considered a future and uncertain event, and the liability is not due until the date of approval for publication of this report. The “DATAWALK GROUP'S CASH-SETTLED INCENTIVE PROGRAM” includes details of this program. The second and the most significant factor in the Group's operating expenses increase during this period was the increase in the cost of salaries and wages and third-party services related to the development and 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: 513.298,80 zł w całości wpłacony Page | 21 growing scale of the Group's operations. Both in the area of increasing the staff size, such as implementation specialists, programming, and sales, and ongoing processes related to international commercialization. The management of the Group expects a continuous, dynamic increase in the scale of its operations, along with the development of the data analysis market, in particular based on graph visualization methods. Considering the long, sometimes several years, and very complicated sales processes, the Group currently focuses on working with top- tier clients and simultaneously expanding go-to-market teams in America and Europe, striving to increase the capacity of commercial and implementation processes, while continuing investments in key resources needed for DataWalk software development. High competition in the IT market in terms of acquiring resources does not constitute 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 in the domestic and international markets. The Group management introduces several measures to increase the Group's operational efficiency. The DataWalk Group financial results The table below presents selected consolidated financial data for the first half of 2022 and the comparable period of 2021. Position 01/01/2022 – 06/30/2022 01/01/2021 – 06/30/2021 Change Revenues 18 162 14 088 29% Operating costs 131 888 16 155 716% Profit/Loss on sales -113 725 -2 066 5 404% Other operating income 182 875 -79% Other operating costs 39 1 6 305% Loss (profit) from expected credit losses 3 197 -98% Operating profit (loss) -113 585 -1 389 8 078% Net profit (loss) attributable to shareholders of the parent company -77 742 -1 344 5 686% Source: Issuer. The net loss for the first half of 2022 attributable to shareholders of the parent company amounted to PLN 77,742 thousand. It was 5,686% higher than in the corresponding period of 2021 when it amounted to PLN 1,344 thousand. The most significant impact on the change in the Group's consolidated financial result in the first half of 2022 relative to the comparable period was: • PLN 4,074 thousand increase in sales revenues, • PLN 7,050 thousand increase in salary and third-party service costs related to the development and growing scale of the Group's operations, both in the area of increasing the number of specialists in implementation, programming, and sales, as well as ongoing processes related to international commercialization, • PLN 106,249 thousand of incentive program costs using cash-settled share-based payment transactions following IFRS 2, • PLN 36,097 thousand recognition of deferred tax assets. 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: 513.298,80 zł w całości wpłacony Page | 22 The table below presents additional consolidated financial information for the first half of 2022 and the comparable period of 2021. Position 01/01/2022 – 06/30/2022 01/01/2021 – 06/30/2021 Change Revenues 18 162 14 088 29% EBIT -113 585 -1 389 8 078% Amortization and depreciation 1 320 732 80% EBITDA -112 265 -657 16 995% Share-based incentive program costs 106 249 0 - Adjusted EBITDA -6 016 -657 816% CFO bt -7 403 -11 159 -34% CAPEX -6 188 -3 962 56% FCF -13 591 -15 121 -10% Closing balance of cash 37 648 66 222 -43% Interest debt 1 222 2 457 -50% Source: Issuer. EBIT = Operating profit (loss), EBITDA = EBIT + Amortization and depreciation, Adjusted EBITDA = EBITDA + estimated costs related to the incentive program payable in the Group's own shares (settled in cash and equity instruments), CFO bt = 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 = CFO bt - |CAPEX|. The revenue structure of the DataWalk Group In the first half of 2022, revenues from sales of licenses amounted to PLN 12,351 thousand, accounted for 68% of the Group's total revenues, and were 15% higher than in the comparable period of 2021. Revenues from the sale of implementation services amounted to PLN 1,603 thousand and were 7% lower compared to the first half of 2021. In turn, the value of revenues from the provision of technical support services in the first half of 2022 amounted to PLN 4,052 thousand, accounted for 22% of the Group's total revenues, and was 584% higher than in the comparable period of 2021. The decrease in the other revenue item was due, in particular, to the termination of the sale of additional services related to DataWalk software to one of the Group's customers. Noteworthy is the dynamic growth of revenues from the provision of technical support services, mainly due to the renewal of this service by existing customers for further periods. The table below presents consolidated revenues for the first half of 2022, and in the comparable period of 2021. Position 01/01/2022 – 06/30/2022 01/01/2021 – 06/30/2021 Change Licenses sale 12 351 10 739 15% Implementation services 1 603 1 725 -7% Technical support 4 052 592 584% Other 156 1 032 -85% Total 18 162 14 088 29% Source: Issuer. DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 513.298,80 zł w całości wpłacony Page | 23 The table below presents the currency structure of revenue for the first half of 2022 and the first quarter of 2021. Position 01/01/2022 – 06/30/2022 01/01/2021 – 06/30/2021 PLN (Polish zloty) 36% 62% USD (U.S. Dollar) 64% 38% Total 100% 100% Source: Issuer The revenue structure of the DataWalk Group by regions The table below presents the revenues of the DataWalk Group in the first half of 2022 by regions (in thousands of PLN). Revenues by region 01/01/2022 – 06/30/2022 Share in total revenues (%) Poland 6 503 36% North and South America 8 453 47% Other regions 3 207 18% Total 18 162 100% Source: Issuer. The table below presents the revenues of the DataWalk Group in the first half of 2021 by region (in thousands of PLN). Revenues by region 01/01/2021 – 06/30/2021 Share in total revenues (%) Poland 8 755 62% North and South America 3 751 27% Other regions 1 582 11% Total 14 088 100% Source: Issuer. Cash flow of the DataWalk Group The Group's cash flow from operating activities (CFO) in the first half of 2022 amounted to PLN -7 403 thousand and was mainly influenced by: (i) operating loss adjusted for depreciation and amortization (EBITDA) in the amount of PLN 112,265 thousand, which was mainly affected by the recognition of incentive program costs in the amount of PLN 106,249 thousand; (ii) increase in the balance of liabilities under the incentive program by PLN 106,249 thousand due to the long-term nature of the recognized economic event (future and uncertain event); (iii) a decrease in prepayments by PLN 35,536 thousand, which is primarily attributable to the recognition of a deferred tax asset following the recognition of the cost of the incentive program; (iv) decrease in contract assets and liabilities by PLN 3,829 thousand, mainly influenced by the recognition of income from the transfer of a license to a customer, for which the amount of remuneration is due. The Group's cash flow from investment activities (CFI) in the first half of 2022 amounted to PLN -6 241 thousand and was particularly influenced by capitalized costs of DataWalk software development of PLN 6 018 thousand. The Group's cash flow from financing activities (CFF) in the first half of 2022 amounted to PLN -352 thousand, which was mainly affected by the repayment of lease liabilities by the Issuer. DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 513.298,80 zł w całości wpłacony Page | 24 The table below presents the cash flow of the DataWalk Group for the first half of 2022 and comparable period of 2021 (in thousands of PLN) Position 01/01/2022 – 06/30/2022 01/01/2021 – 06/30/2021 Change CFO -7 403 -11 159 -34% CFI, including: -6 241 -3 909 60% - CAPEX -6 188 -3 962 56% CFF -352 -323 9% Total net cash flows -13 996 -15 391 -9% 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 sheet of the DataWalk Group The table below presents selected balance sheet items as at June 30, 2022, and December 31, 2021. Assets 06/30/2022 12/31/2021 Change Goodwill 390 390 0% Intangible assets 20 636 15 496 33% Contract assets 5 221 557 837% Trade receivables 8 395 7 356 14% Other short-term receivables 1 932 2 638 -27% Cash and cash equivalents 37 648 51 650 -27% Deferred tax assets 39 227 3 565 1 000% Other assets 7 232 7 401 -2% Total assets 120 679 89 052 36% Equity and liabilities 06/30/2022 12/31/2021 Change Equity 1 469 78 462 -98% Incentive program liabilities 106 249 0 - Trade payables 2 232 2 091 7% Bank loans and borrowings 719 640 12% Lease liabilities 503 711 -29% Contract liabilities 5 142 4 307 19% Other liabilities 4 365 2 841 54% Total equity and liabilities 120 679 89 052 36% Source: Issuer. DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 513.298,80 zł w całości wpłacony Page | 25 The table below presents selected financial ratios of the DataWalk Group as at June 30, 2022, as well as December 31, 2021. Position 06/30/2022 12/31/2021 Current ratio 4,7 6,6 Quick Ratio 4,4 6,3 Cash Ratio 3,1 5,2 Debt ratio 99% 12% Debt / Equity 0,8 0,0 Debt-to-Equity Ratio 8 114% 13% Working Capital (in thousands PLN) 44 906 55 313 Source: Issuer. The increase in both the total debt ratio and the debt-to-equity ratio is due to the recognition in the Group's balance sheet of a financial liability arising from the valuation of the incentive program. The “DATAWALK GROUP'S CASH-SETTLED INCENTIVE PROGRAM” includes details of this program. 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 KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 513.298,80 zł w całości wpłacony Page | 26 DATAWALK GROUP'S CASH-SETTLED INCENTIVE PROGRAM Information on estimates The Group carries out an incentive program using cash-settled share-based payment transactions. The program is based on derivative financial instruments, entitling the holder to receive payment of a cash amount in the amount and under the conditions specified in the Regulations and the Participation Agreement (so-called Restricted Stock Units, hereinafter "RSUs"). This program is recognized in the consolidated financial statements following IFRS 2. To comply with IFRS 2, the Group recognizes an amount for services received during the vesting period, using the best available estimate of the number of equity instruments for which vesting will occur. If necessary, the entity revises these estimates if subsequent information indicates that the number of equity instruments to be vested differs from previous estimates. At the vesting date, the entity adjusts the estimate to the level of the number of equity instruments that ultimately vest. Recognition of an incentive program requires the performance of an analysis that involves making certain assumptions and applying professional judgment, particularly regarding the number of equity instruments that will vest during the reporting period and the valuation of the RSU. At each balance sheet date, the Group estimates the number of equity instruments for which vesting will occur and their fair value during the reporting period to recognize in the financial statements the relevant liabilities and the Group's costs resulting from the incentive program. The character and principles of the long-term cash-settled Incentive Program of the DataWalk Capital Group On June 30, 2020, the General Meeting of DataWalk S.A. adopted a resolution to introduce an Incentive Program (the "Program") aimed at members of key personnel who are Employees, Associates or members of the Executive Board ("Eligible Persons") of the Group. The Program's Regulations were adopted by the Company's Executive Board and subsequently approved by the Supervisory Board in a resolution of March 18, 2022. The Program's provisions are effective as of the date of adoption of the Regulations by the Supervisory Board and shall remain in force until the date of termination by the Executive Board with the effects referred to in the Regulations. The Executive Board may at any time, with the approval of the Supervisory Board, decide to terminate the Program or make changes to it. The purpose of the Program is to attract and retain members of key personnel on a long-term basis for both the Company and/or its Subsidiaries by creating: additional market-attractive tools to fully identify and identify key personnel with the Group, its long-term goals, motivating them to pay special attention to the Group's long-term performance, maintaining the Group's dynamic growth in value, and linking the interests of these individuals to the interests of the Group and, consequently, to the interests of its shareholders, thereby linking the long-term value of the Group to the long-term goals of the individuals comprising the key personnel. The maximum number of RSUs that may be granted in aggregate to all Eligible Persons under the Program may not exceed 1,120,000 units. The maximum duration of the Eligible Persons' right to exercise RSUs is 10 years from the signing of the Program Participation Agreement, under which the Eligible Person becomes entitled to receive cash upon meeting certain vesting conditions. In share-based payment transactions, the Group receives services from Eligible Persons and incurs an obligation to spend cash, which is based on the price (or value) of the Company's shares as remuneration. The Eligible Persons were offered to enter into agreements regarding participation in the Program (the "Participation Agreement"), which set forth the terms and conditions for the Eligible Persons' entitlement to receive derivative financial instruments within the meaning of the Financial Instruments Trading Act of July 29, 2005 (Journal of Laws No. 183, item 1538, as amended) entitling them to receive payment of a cash amount in the amount and under the terms and conditions set forth in the Regulations and the Participation Agreement (so-called Restricted Stock Units, hereinafter "RSUs"). 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: 513.298,80 zł w całości wpłacony Page | 27 The conditions related to the acquisition of RSUs imply the fulfillment of the established individual goals, if provided for in the Participation Agreement, and/or the maintenance of the Employee's and/or Associate's and/or Executive Board Member's status in the Group for the period specified in the Participation Agreement and under the terms and conditions set forth in the Regulations. The conditions related to the fulfillment of the established individual goals (performance vesting conditions) do not depend on the market price of the Group's equity instruments and are therefore classified as non-market conditions. The conditions related to maintaining the status of an Employee and/or Associate and/or Executive Board Member in the Group (service period vesting conditions) are for four years, taking into account the period of service to the Group before approval of the Regulations. Vesting takes place on an annual basis (one-year cliff). Under IFRS 2, vesting conditions other than market conditions should not be considered when estimating the fair value of shares or stock options at the measurement date. Instead, vesting conditions should be considered by adjusting the number of equity instruments used in measuring the value of the entire transaction, so that the value of the services recognized in exchange for the equity instruments granted takes into account the number of instruments that will eventually vest. The condition for the Realization of payments under the Program provisions is the fulfillment of the vesting conditions (vesting conditions) and the execution of the Sale Transaction (non-vesting condition) together. A Selling Transaction means a situation in which all of the following conditions occur: (i) an entity or group of entities acting in concert, as referred to in Article 87 of the Polish Offering Act, will exceed 50% of the total number of votes in the Company as a result of the announcement of a tender offer for the sale of all the Company's shares, as referred to in Article 74 (1) or (2) or Article 91 (5) of the Polish Offering Act. 5 of the Polish Act on Public Offering, whereby, for the purposes of calculating the total number of votes in the Company, the sum of the number of votes held - regardless of legal title - by all entities belonging to the same capital group and the number of votes attached to the shares is taken into account, even if the exercise of voting rights therefrom is limited or excluded pursuant to the Company's Articles of Association or an agreement or provisions of law, or a transformation, merger or division of the Company takes place, which would not require the announcement of a tender offer pursuant to Article 92 of the Polish Act on Public Offering; and (ii) FGP Venture will dispose of at least [587,500] (in words, [five hundred eighty-seven thousand five hundred]) of its shares in the Company or their equivalent received as a result of the transformation, merger or demerger of the Company (in response to the tender offer referred to in clause (i) or independently of such tender offer), or an entity (acting alone, through a group of companies or in concert with other entities), other than the shareholders of FGP Venture as of June 30, 2020, will reach more than 50% of the shares in FGP Venture, (iii) notwithstanding the above, a transaction will not constitute a Sale Transaction if it does not result in a change of control within the meaning of Article 409A, i.e. (a) the entity or group of entities acting in concert exceeds 50% of the total number of votes in the Company or ownership of 50% of the Company's assets, or (b) the achievement of effective control over the Company understood as achieving at least 30% of the total number of votes, or (c) the acquisition of the Company's assets representing at least 40% of the gross market value of all the Company's assets; Under IFRS2, the Sale Transaction is understood as a condition other than vesting conditions (so-called non-vesting condition). Since the occurrence of the Sale Transaction is a probable future event, however, dependent on factors not fully controlled by the Group, and does not depend on the market price of the Group's shares - it has not been included in the valuation estimates of the RSUs. The realization of RSUs consists of a one-time payment by the Group of a cash amount in an amount equal to the product of the number of RSUs granted and the value of the RSUs set forth in the Regulations, which will depend on the value/price of the shares from the Sale Transaction, less any mandatory withholdings for income tax, social security, health insurance contributions or any other public and legal dues in the part charged to the Participant, which the Group, as the payer, is required to withhold under applicable laws. Once the RSUs have been exercised, i.e., as to which there has been payment of the cash amount due, the Participant is not entitled to any additional cash or non-cash benefits from the Group under the Program. 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: 513.298,80 zł w całości wpłacony Page | 28 If a Sale Transaction does not occur within the period indicated in the Participation Agreement entered into with the relevant Participant's right to receive RSUs, in view of the inability to meet the Performance Conditions, the Participation Agreement shall be automatically and immediately terminated to the extent of the RSUs in question, without any performance obligation on the part of the Company or the Subsidiary. The Participant shall not be entitled to any claims for payment, including any claims for damages against the Company, the Subsidiary, their shareholders, or members of their management boards. Assumptions used for valuation of the Program Employee services received in cash-settled share-based payments are measured indirectly at the liability's fair value at the grant date. The initial liability measurement is based on the fair value of the underlying instruments. Measurement of the liability takes into account the extent to which services have been rendered. The entity determines the fair value of a cash-settled liability by considering only market and non-vesting conditions. It means that vesting conditions and non-market conditions affect liability measurement by adjusting the number of rights to receive cash based on estimates of the performance to be met. At each reporting date, and ultimately at the settlement date, the recognized liability's fair value is subject to remeasurement. The remeasurement applies to the recognized liability portion up to the vesting date. The full amount is subject to remeasurement from the vesting date to the settlement date. The cumulative net cost and amounts recognized in the income statement that will ultimately be recognized in connection with the transaction will equal the amount paid to settle the liability. The effects of remeasurement during the vesting period are recognized immediately in the income statement (in the corresponding expense item) to the extent that they relate to past services, and to the extent that they relate to future services the effect of remeasurement is spread over the remaining vesting period. It means that in the repricing period there is a supplementary adjustment for previous periods so that the recognized liability at each reporting date is equal to the total fair value of the liability. As of the balance sheet date of June 30, 2022, the Group has revalued the RSUs for which vesting has occurred based on the Group's internal estimates. A decision on the final number of RSUs granted and their value had not been made as of the date of the financial statements, as there were no events specified in the Regulations giving Eligible Persons the right to grant and benefit from the RSUs granted. The fair value of the RSUs as of the balance sheet dated June 30, 2022, was determined based on the market price of DataWalk S.A. shares. As stipulated in the Regulations, the value of the RSUs will be determined based on the share price from the Sale Transaction. The RSUs will be granted at no cost to the Eligible Persons. RSUs do not carry the right to dividends; therefore, the expected dividend yield is 0. There are no other market conditions in the valuation of RSUs in the Program. In this situation, the valuation of the RSUs at a given balance sheet date should be equal to the fair value of the Company's shares at that date. On the other hand, the total cost of the Program should be determined at each balance sheet date taking into account other non-market factors. The Company performed a sample simulation of the RSU valuation using the Black-Scholes model to confirm the validity of this approach. The valuation result confirms that it is reasonable to take the RSU valuation at the fair value of the shares under the assumptions mentioned above. The average annual percentage of forfeitures for RSUs, based on expectations of, for example, the number of employees and associates leaving the Group before the vesting date, was assumed to be 0%. The Group periodically revises these estimates and updates them to actual forfeitures. 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: 513.298,80 zł w całości wpłacony Page | 29 The recognition of the Program from January 1, 2022 to June 30, 2022 The following table shows the number of RSUs granted as of June 30, 2022, by vesting conditions and degree of performance. Vesting conditions Granted rights (in pcs.) Degree of fulfillment of vesting conditions Estimated number of vested rights (in pcs.) Remains under vesting (in pcs.) Vested rights 712 150 100% 712 150 0 Providing services until 12/31/2022 72 375 33% 23 773 48 602 Providing services until 06/30/2023 2 875 20% 570 2 305 Providing services until 12/31/2023 3 625 14% 511 3 114 Providing services until 06/30/2024 4 125 11% 453 3 672 Providing services until 12/312024 2 375 9% 213 2 162 Providing services until 06/12/2025 1 625 8% 122 1 503 Providing services until 12/31/2025 750 7% 49 701 Razem 799 900 92% 737 841 62 059 The following table presents the number of RSUs for which the acquisition conditions are estimated to have been fulfilled. Therefore, the services are considered to have been rendered during the six months ended June 30, 2022, and the recognition in expense at weighted average fair value. Description Quantity Weighted average fair value (in PLN) Cost by weighted average fair value (in PLN thous.) Estimated number of vested rights as of 01/01/2022 0 0 0 Estimated amount of vesting during the period 737 841 144 106 249 Number of forfeited rights during the period 0 144 0 Estimated number of vested rights as of 06/30/2022 737 841 144 106 249 No redemption or expiration of RSUs occurred during the reporting period. The total cost of the Program recognized in the consolidated financial statements for the six months ended June 30, 2022, estimated according to vesting, amounted to PLN 106,249 thousand. The following table presents the recognition of the Program's costs by line item in the consolidated financial statements. Financial statement element Item Weighted average fair value (in PLN thous.) Profit and Loss Account/Operating costs Employee benefits 106 169 Profit and Loss Account/Operating costs External services 80 Long-term liabilities Incentive program liabilities 106 249 Due to the Program's long-term character and the expected execution date, liabilities under the Program have been classified as long-term liabilities. The total amount of liabilities under the Program as of June 30, 2022 was PLN 106,249 thousand. There were no RSUs that were exercised during the reporting period, as well as no RSUs that were exercisable as of the balance sheet date of June 30, 2022. 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: 513.298,80 zł w całości wpłacony Page | 30 The following table shows the settlement of RSUs under the Program by exercise status and their fair values as of June 30, 2022. Description Number of units % of the Program Fair value (in PLN) Cost by fair value (in PLN thous.) The maximum number of units in the Program, including: 1 120 000 100% 144 161 280 - RSUs granted under the Participation Agreements 799 900 71% 144 115 186 - Tranche as of 01.04.2022 799 900 71% 144 115 186 - Number of forfeited rights 0 0% 144 0 - Number of RSUs to be granted in future periods 320 100 29% 144 46 094 RSUs granted under the Participation Agreements, including: 799 900 71% 144 115 186 - Vested rigths 712 150 64% 144 102 550 - Remaining in the process of vesting, including: 87 750 8% 144 12 636 (a) for which it is estimated that vesting conditions have been met 25 691 2% 144 3 700 - Forfeited rights 0 0% 144 0 As of the balance sheet date of June 30, 2022. The incentive program remains in progress. Recognition of the Program from June 1, 2021 to June 30, 2021 During the six months of 2021. The Program was not in effect. 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: 513.298,80 zł w całości wpłacony Page | 31 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 presence of COVID-19 and 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 operational and development work depends mainly on the availability of employees and the Group focuses its attention on this, taking measures to protect employees' health and the possibility of remote and hybrid work. 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 and its final impact on the financial situation of the Group. IMPACT OF THE POLITICAL AND ECONOMIC SITUATION IN UKRAINE Since February 24, 2022, there has been a war in Ukraine that has created a new, constantly changing, and economically unpredictable situation in the world. Representatives of the European Union, the United States, the United Kingdom, and many other countries have imposed sanctions that are severe on Russia, which mainly affect strategic sectors of the Russian economy by blocking access to technology and markets, and have announced the introduction of new ones. Currently, the Group has not identified any significant negative impact on its operations. In the first half of 2022, as in previous periods, the Group did not sell DataWalk software to customers and partners from Russia, Belarus or Ukraine. The Group does not have a supply chain that could potentially be exposed to the risks of interrupting the continuity of supplies, which could adversely affect the Group's operating capabilities. The Group also does not have any investments or subsidiaries in conflict-affected areas. There are no Ukrainian employees among the personnel of the Group companies, where there is a risk related to the possible loss of employees due to military mobilization in a country covered by the war. Due to the dynamic situation in Ukraine, it cannot be ruled out that the ongoing conflict, depending on its further development and actions taken at the national and international level, may have a significant negative impact on the economic situation in Poland and in the world, which may infuence the possibility of implementing the Group's plans and its future financial results. Therefore, the Management Board of the Group monitors and analyzes the available information and takes steps to minimize the impact of the situation on its operations as the events unfold. 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: 513.298,80 zł w całości wpłacony Page | 32 MAJOR EVENTS THAT HAVE AN IMPACT ON THE DATAWALK GROUP'S RESULTS IN THE REPORTING PERIOD • In the first half of 2022, the Group has obtained a further seven significant projects, which include cooperation with entities such as the United States Department of Agriculture in the United States, the United Nations ("UN"), ING Bank Slaski S.A., Total Energies SE, and Enigma Systemy Ochrony Informacji sp. z o.o. as part of the implementation of cooperation with the Police Headquarters, as reported in ESPI current reports. • On June 22, 2022, the Executive Board informed that it concluded an agreement with PKN Orlen S.A. registered in Płock, Poland, which is a continuation of the cooperation, which the Company reported on February 14, 2020. • On June 23, 2022, the Executive Board informed that the Company’s subsidiary DataWalk Inc. had obtained a purchase order from Ally Financial for the license sale of the DataWalk analytical platform. Continued cooperation through the expansion of the DataWalk system and licenses at the Group's existing customers confirms the effectiveness of the commercialization model adopted by the Company and the usefulness of the DataWalk product at leading banking institutions. • On March 10, 2022 the Issuer informed that the Company Board has adopted the Regulations of Incentive Program (“Incentive Program”) for key staff members of DataWalk SA and its Subsidiaries. (The Regulations were adopted based on the authorization granted in the Resolution of the Ordinary General Meeting of the Company #19 of June 30, 2020 (“Resolution of the OGM”) on establishing an incentive program for key personnel of DataWalk S.A. and/or subsidiaries. The adopted Incentive Program is consistent in its assumptions with the Resolution of the OGM. It means: 1. The purpose of this Incentive Program is to attract and retain key employees of both the Company and its Subsidiaries by creating an additional incentives tool that allows for the identification of the key personnel with the Company, its long term objectives, supporting dynamic growth and linking the interest of participants with the interest of the Group and its Shareholders. Thus, the purpose of the Incentive Program is to link the long- term value of the Company and its capital group with the long-term goals of the key personnel. 2. The Incentive Program is addressed to the employees and associates of the Company or the Subsidiary (“Participants”). The participants are determined by the Management Board of the Company and in the case of Participants who are members of the Management Board of the Company and/or the Subsidiary – by the Supervisory Board. The Company’s Supervisory Board members are not eligible for Incentive Program. 3. The Incentive Program will be implemented by granting, free of charge, Restricted Stock Units (‘RSUs’) to eligible Persons in accordance with the Regulations, with whom the Company or, respectively, a Subsidiary, concluded an agreement for participation in the Incentive Program (“Participation Agreement”), after meeting vesting conditions specified in the Regulations and the Participation Agreement. Restricted Stock Unit is a derivative financial instrument as defined in the Act of 29 July 2005 on trading in financial instruments (Journal of Laws of 2020, item 89, as amended), with the Company’s shares as the underlying instrument, entitling to a cash payment in the amount equal to the product of the number of RSUs granted and their value calculated in accordance with the provisions of the Regulations. The value of one RSU is determined in accordance with the principles described in detail in § 2 sec. 3 of the OGM Resolutions. 4. The maximum number of RSUs that may be granted jointly under the entire Incentive Program to all Participants may not exceed 1,120,000. 5. Allocation of RSU Units to Participants will take place if the following conditions are jointly met: a. Vesting conditions set out in the individual participation agreements, which determines whenever the Company receives the service that entitles a Participant to receive RSUs b. Non-vesting condition set out and described in detail in § 2 sec. 1 of the OGM Resolutions (“Sales Transaction”), means a situation in which all following events occur: (i) an entity or group of entities operating in the agreement referred to in Art. 87 of the Act on Public Offering, will exceed 50% of the total number of votes in the Company as a result of the announcement of a tender offer for all shares of the Company referred to in art. 74 section 1 or 2 or art. 91 section 5 of the Act on Public Offering, 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: 513.298,80 zł w całości wpłacony Page | 33 where for the purposes of calculating the total number of votes in the Company, the sum of the number of votes held - regardless of the legal title - by all entities belonging to the same capital group and the number of votes from shares, even if exercising their right, is taken into account voting rights are limited or excluded by the Company's Articles of Association or contract or provisions of law or the Company will be transformed, merged, or de-merged in such manner that will not require the announcement of a tender offer under sec. 92 of the Act on Public Offering; and (ii) FGP Venture will sell at least [587,500) its shares in the Company or its equivalent received as a result of a transformation, merger, or de-merger of the Company (in response to the tender offer referred to in item (i) or independently of the tender offer) or an entity (acting alone, through a group capital or in consultation with other entities), other than the partners of FGP Venture as at [date], will achieve over 50% of shares in FGP Venture. (iii) Notwithstanding the foregoing, a transaction will not be deemed a Sale Transaction unless the transaction qualifies as a change in control event within the meaning of Section 409A, i.e., a) an entity acting alone or in consultation with other entities achieving over 50% of votes in the Company or ownership of over 50% of assets of the Company or b) achieving effective control of the Company understood as achieving at least 30% of the total number of votes; or c) ownership of at least 40% gross worth of the assets of the Company. 6. The detailed conditions of the Incentive Program are set out in the OGM Resolution, the Regulations, and, individually for each Participant, in the Participation Agreement. For Eligible Persons who are Members of the Management Board of the Company or a subsidiary of the Company, the Regulations and individual terms and conditions must be approved by the Supervisory Board of the Company. The first tranche of Incentive Program based on RSUs will be addressed mainly to Participants nominated from the Subsidiary. The granting of the RSUs and the conclusion of the Participation Agreements does not determine whether an employee receives a share-based payment. Share-based payment will be possible only on the condition that both vesting and non-vesting conditions are met. The aforementioned conditions are described in the Incentive Program (individual vesting conditions set based on criteria defined in Executive Board resolution and the occurrence of the Sale Transactions). The RSU Units were awarded to eligible employees and associates of the Company and DataWalk, Inc. on April 1, 2022 (Grant Date). At a later stage of the Incentive Program, the authorized bodies may appoint further Participants of the Program and grant them a specified number of RSU Units. As of the date of publication of this report, the intrinsic value of the Program is not known, because the share- based payment will be possible only on the condition that both vesting and non-vesting conditions (Sales Transactions) are met. Therefore, share-based payment resulting from the Incentive Program is considered at the moment as a future and uncertain event. At the same time, the Issuer indicates that as at the date of publication of this report, it has no information about any events that would indicate there is high likelihood of meeting non- vesting conditions (i.e., Sale Transaction) in the near future, including any negotiations with a potential investor that would meet the parameters required for the fulfilment of the Sales Transaction condition. Despite only the conditional and potential nature of meeting non-vesting conditions of the Incentive Program, due to the regulations resulting from IFRS 2 “Share-based payments”, the Company is obliged to evaluate granted RSUs. Information on the course of execution of the Incentive Program, in particular with regard to the number of participants, the number of granted RSUs and their subsequent valuation will be updated in the Company’s periodic reports in accordance with the currently applicable legal regulations, in particular International Financial Reporting Standards. • On March 18, 2022 the Issuer informed that on March 18, 2022 the Supervisory Board of the Company approved the Regulations of Incentive Program (hereinafter: “Regulations”) for the key personnel of DataWalk SA and / or Subsidiaries (hereinafter referred to as the “Incentive Program”) and approved the individual vesting conditions for granting RSUs for Eligible Persons who are Members of the Executive Board of the Company or a subsidiary, i.e. DataWalk Inc. 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: 513.298,80 zł w całości wpłacony Page | 34 The Regulations were approved on the basis of the Issuer’s Executive Board Resolution No. 03/03/2022 of March 10, 2022, the adoption of which was reported by the Company in the current report No. 9/2022 on March 10, 2022 and the authorization granted in the Resolution of the Ordinary General Meeting of the Company No. 19 of June 30, 2020 on the establishment of an incentive program for members of the key personnel of DataWalk SA and / or subsidiaries. • On May 31, 2022, the Executive Board of DataWalk S.A. has prepared a draft of the resolution on the introduction of the Incentive Program based on the Company’s stock (“Incentive Program”) for the key personnel of DataWalk S.A. The Executive Board of the Company intends to put the project of the resolution on the introduction of the Incentive Program on the agenda for the upcoming Ordinary General Meeting of Shareholders of the Company (“OGM”). The draft has been approved by the resolution of the Supervisory Board on May 31, 2022 and will be the subject of voting at the OGM, which will be convened with a separate current report. 1. The purpose of the Incentive Program is to link the long-term value of the Company with the long-term goals of the Company’s key personnel. 2. The Incentive Program is addressed to the key personnel of the Company (“Participants”), including the executive and non-executive directors, key managers, and other indicated associates providing work for the Company on the basis of employment contracts or services under a civil law contract. 3. The Incentive Program will be implemented by granting to the key personnel rights to acquire the Company’s shares (“Rights”) – in total not exceeding 430.000 (four hundred and thirty thousand) shares – under the terms specified in the Resolution of the OGM, the program regulations, and the participation agreements. The rights will be acquired by participants free of charge. 4. The basic criteria for participation in the Program is the assessment of the individual contribution of each Participant to the growth of the Company’s value, in particular, the development of the Company’s strategic business area. 5. As in the case of the existing incentive program settled through Restricted Stock Units, the granted Rights may be exercised only in the event of the joint fulfillment of individual goals of the Participants described in the participation agreements and the sale of the Company (Sales Transaction). 6. Sales Transaction is defined as a situation in which all the following events occur: a. an entity or group of entities will exceed 50% of the total number of votes in the Company as a result of the announcement of a tender offer for all shares of the Company, and b. FGP Venture sp. z o.o. will dispose at least 587,500 of its shares in the Company or an entity (acting alone, through a group capital, or in consultation with other entities), other than the partners of FGP Venture sp. z o.o. as of June 30, 2022, will achieve over 50% of shares in FGP Venture sp. z o.o.. c. notwithstanding the foregoing, a transaction will not be deemed a Sale Transaction unless the transaction qualifies as a change in control event, i.e.: i. an entity acting alone or in consultation with other entities achieving over 50% of votes in the Company, or ownership of over 50% of assets of the Company or ii. achieving effective control of the Company, understood as achieving at least 30% of the total number of votes; or iii. ownership of at least 40% gross worth of all the assets of the Company. 7. The Rights will be exercised either: (i) directly through an increase of share capital, authorizing the Executive Board to increase the share capital of the Company as part of the target capital, or purchasing its own shares by the Company in order to offer them to the Participants; (ii) indirectly through the mechanism of conditional share capital increase related to the issue of subscription warrants addressed to the Participants (iii) or in any other appropriate manner – depending on the decision of the Executive Board in this regard, approved by the Supervisory Board. DataWalk Spółka Akcyjna ul. Rzeźnicza 32-33 50-130 Wrocław KRS: 0000405409, NIP: 894 303 43 18, REGON: 021737247 Sąd rejestrowy: Sąd Rejonowy dla Wrocławia- Fabrycznej we Wrocławiu VI Wydział Gospodarczy KRS Kapitał zakładowy: 513.298,80 zł w całości wpłacony Page | 35 8. Regardless of the method of exercising the Rights, the Participant will acquire/subscribe to the Shares at a nominal price. • Political and economic situation in Ukraine In connection with the recommendation sent by the Polish Financial Supervision Authority on February 25, 2022, the Company hereby informs that as at the date of submitting this report for publication, this situation has no significant impact on the operations of the Group companies. In the first half of 2022, as in previous periods, the Group did not sell DataWalk software to Russia, Belarus or Ukraine. The Group has no supply chain that could potentially be exposed to additional risks, and does not have investments and subsidiaries in conflict-affected areas. There are no Ukrainian employees among the personnel of the Group companies, where there is a risk related to the possible loss of employees due to military mobilization in a country covered by the war. As at the date of approval of these financial statements for publication, the Management Board, based on the analysis of risks to date, in particular those resulting from the political and economic situation in Ukraine, concluded that the continuation of the Group's operations for a period of at least 12 months from December 31, 2021 year is not threatened. The Group has a stable financial situation, monitors and analyses the available information and takes steps to minimize the impact of the situation on its business as the events unfold. Nevertheless, due to the dynamic situation in Ukraine, it cannot be ruled out that the ongoing conflict, depending on its further development and actions taken at the national and international level, may have a significant negative impact on the economic situation in Poland and in the world, which may translate into the possibility of implementing the Group's plans and its future financial results. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE AFFECTING THE GROUP'S OPERATIONS • After June 30, 2022, the Company's Management Board, with the approval of the Supervisory Board, carried out the process of raising investor capital through the issuance of new P series with the exclusion of pre-emptive rights for existing shareholders, as the Issuer announced in ESPI current reports. Agreements for the subscription of P series were concluded from August 11 to 22, 2022. The Shares were subscribed for privately based on the Share Subscription Agreements, and therefore no shares were allotted within the meaning of Article 434 of the Commercial Companies Code. The private subscription included 274,082 P series ordinary bearer shares with a nominal value of PLN 0.10. The subscription included 246,940 P series ordinary bearer shares with a nominal value of PLN 0.10 each. No allotment was made within the meaning of the Commercial Companies Code. Series P shares were subscribed for at an issue price of PLN 155 per share. As a result of the issue, the Company raised capital to implement the adopted development strategy in the total amount of PLN 38,275,700. The Company intends that the shares will be subject to dematerialization and will be introduced and admitted to trading on the main market of the Warsaw Stock Exchange. Therefore, the Company's Board of Directors adopted a resolution to apply for admission and introduction to trading on the regulated market operated by the Warsaw Stock Exchange (Giełda Papierów Wartościowych S.A.) of series P shares and dematerialization of series P shares. On August 31, 2022, the District Court for Wrocław-Fabryczna in Wrocław, VI Commercial Division of the National Court Register registered amendments to the Company's Articles of Association, adopted based on the Management Board's Resolution No. 02/08/2022 dated August 10, 2022, on increasing the Company's share capital within the limits of authorized capital by issuing new P series shares. • On August 31, 2022, the Executive Board adopted the Regulations of the Incentive Program (“Regulations”) for members of the key personnel of DataWalk S.A. (the “Incentive Program” or the “Program”). The Regulations were adopted based on the authorization granted in the Resolution of the Company’s Annual General Meeting No. 20 of June 30, 2022, on the establishment of a share-based incentive program for members of key personnel of DataWalk S.A. (hereinafter: the “AGM Resolution”). 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: 513.298,80 zł w całości wpłacony Page | 36 The assumptions of the adopted Incentive Program are compliant with the AGM Resolution, that is: 1) The purpose of the Incentive Program is to attract and retain members of the Company’s key personnel on a long-term basis by creating additional tools attractive on the market, which support full identification of the key personnel with the Company, its long-term goals, motivate this personnel to pay special attention to maintain the Company’s dynamic growth, and link the interests of these individuals with attention to the Company’s interests and, consequently, the interests of its shareholders. Therefore the Incentive Program enables participation in the expected growth of the Company and, as a consequence strengthens the relationship of these individuals with the Company. 2) The Incentive Program is addressed to the key personnel, understood as members of the Company’s bodies, key managers, and other designated persons providing work for the Company under an employment contract or services under a civil law contract (“Participants” or individually the “Participant”). In particular, a Participant may be an entity, i.e. a natural person or a single member capital company, in which a sole partner or a shareholder is a natural person, which entity has entered into a commission contract, contract for specific work, service contract, managerial contract, or any other contract relating to cooperation between the parties, including within the natural person’s business activity. The primary criterion for participation in the Program is the evaluation of each Participant’s individual contribution to the development of the Company, including in particular the development of the Company’s key business area. 3) The Incentive Program shall be implemented by granting to Participants, who have been designated to participate in the Incentive Program in accordance with the Regulations, and who have subsequently entered with the Company into a participation agreement in the Incentive Program (the “Participation Agreement”), conditional entitlements to subscribe for and/or acquire shares in the Company ( “Entitlements”). The granting of Entitlements shall not be deemed their vesting or exercise. The Entitlements are not securities and do not include any claims under civil law (including commercial company law) beyond the claim for the exercise of the Entitlements in accordance with the Program, and in particular do not create any shareholder rights on the part of the Participant, including incorporating the right to vote, the right to share in the Company’s profit (dividends), or any other shareholder rights until the Company’s Shares are purchased or acquired. The entitlements are non-transferable to third parties and may not be encumbered by property or bond rights, but are subject to inheritance. 4)The maximum number of Entitlements giving the right to subscribe for and/or acquire shares in the Company, shall not exceed a total number of 430,000 (in words: four hundred and thirty thousand) shares in the Company. As of the date of publication of this report, the total maximum (estimated) value of Entitlements under the Program (determined based on the current price of the Company’s shares), is PLN 66,796 thousand. 5) The vesting of the Entitlements by the Participants shall occur upon the fulfillment of the Vesting Conditions, defined as the fulfillment of the financial or non-financial individual or Company criteria set forth in the Participation Agreement, including: (a) maintenance of the Relationship for the period specified in the Participation Agreement, and/or (b) meeting additional criteria, if provided for in the Participation Agreement. The Entitlements will be acquired free of charge. 6) Exercise of the Entitlement vested by the Participant shall consist in the acquisition or purchase of shares at the nominal price. One Entitlement shall entitle to subscribe for or acquire one share, with the provision that if the nominal price of a share changes, i.e. does not amount to PLN 0.10 (in words: ten groszy) per share, the Participant shall have the right to subscribe for or acquire the number of shares according to the formula set forth in the AGM Resolution. 7) The Exercise of the Entitlement shall take place either: 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: 513.298,80 zł w całości wpłacony Page | 37 (i) directly using the institution of a share capital increase, the authorization of the Executive Board to increase the Company’s share capital within the framework of authorized capital, or the acquisition by the Company of its own shares for the purpose of offering them to the Participants; (ii) indirectly using the institution of a conditional share capital increase linked to the issuance of registered subscription warrants directed to the Participants; (iii) or by any other appropriate means, including indirect acquisition by a third party – depending on the Execution Board’s decision in this regard, approved by the Supervisory Board. 8) Exercise of the Entitlement shall occur in the event of cumulative fulfillment of the following conditions: a) fulfillment of the Vesting Conditions specified each time in the individual Participation Agreement (vesting condition) – e.g. length of cooperation, b) the occurrence of a “Sale Transaction”, i.e. a situation in which all of the following conditions occur (non- vesting condition): (i) an entity or group of entities acting in concert referred to in Art. 87 sec. 1 item 5 of the Act on Offering, will exceed 50% of the total number of votes in the Company as a result of the announcement of a tender offer for the sale of all shares in the Company, in accordance with the Act on Offering (hereinafter: “Tender Offer”), whereby, for the purposes of calculating the total number of votes in the Company, the sum of the number of votes held – regardless of the legal title – by all entities belonging to the same capital group and the number of votes from the shares is taken into account, even if the exercise of voting rights from them is limited or excluded by the Company’s Articles of Association or agreement or by law, or a transformation, merger or division of the Company takes place, which, in accordance with the applicable regulations, will not require the announcement of a Tender Offer; and (ii) FGP Venture will dispose of at least 587500 (in words: five hundred eighty-seven thousand five hundred) of its shares in the Company or their equivalent received as a result of the Company’s transformation, merger or demerger (in response to the Tender Offer or independently of the Tender Offer), or an entity (acting alone, through a group of companies or in concert with other entities) other than the shareholders of FGP Venture as of June 30, 2022 will reach more than 50% of the shares in FGP Venture, (iii) notwithstanding the foregoing, a given transaction will not constitute a Sale Transaction if it does not result in a change of control, i.e.: a) exceeding by an entity or group of entities acting in concert 50% of the total number of votes in the Company or ownership of 50% of the Company’s assets, or b) achieving actual control over the Company, understood as reaching at least 30% of the total number of votes, or c) acquisition of assets of the Company constituting at least 40% of the gross market value of all assets of the Company. 9) The detailed terms and conditions of the Incentive Program are set out in the AGM Resolution, and the Regulations and will be defined individually for each Participant in the Participation Agreement. To participate in the first tranche of the Incentive Program, the Company’s Executive Board nominated 69 employees and associates of the Company, who were designated individual Vesting Conditions and the number of Entitlements granted. The first tranche amounts to a total of 275,518 Entitlements, of which 83,999 relate to the replacement of outstanding Entitlements from the Incentive Program in place at the Company from December 31, 2017 to December 31, 2019. The provisions of the Regulations and the above conditions of participation are subject to approval by the Supervisory Board. The Company will announce these events in separate communications. Granting of the Entitlements and the conclusion of the Participation Agreements do not yet result in the vesting of the Entitlements or their exercise by subscribing for or acquiring the corresponding number of shares. This 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: 513.298,80 zł w całości wpłacony Page | 38 will only be possible if the prerequisites of the Incentive Program (i.e. individual Vesting Conditions determined based on the criteria approved by the Resolution of the Executive Board o and the occurrence of a Sale Transaction) are fulfilled together. With regard to the participation in the Program of members of the Executive Board, decisions regarding the designation of persons eligible to participate in the Program, the determination of individual Vesting Conditions and the number of allotted Entitlements are made by the Supervisory Board of the Company, and with regard to the terms of participation of members of the Supervisory Board, the decision is made by the General Meeting of the Company. The grant of Entitlements to employees and associates of the Company who join the first tranche of the Incentive Program will be made no sooner than the date of approval of the Regulations and Vesting Conditions by the Supervisory Board and no later than October 15, 2022. At a further stage of the Incentive Program, the authorized bodies may designate further Incentive Program Participants and offer them a certain number of Entitlements within the limit specified in the AGM Resolution, i.e. in a total number not exceeding 430,000 (in words: four hundred and thirty thousand) shares of the Company. The Company will announce these events in separate announcements. As of the date of publication of this report, the real value of the total Incentive Program is not known, as the number of vested Entitlements depends on, among other things, the fulfillment of conditions dependent on the Participants, the value of the Company’s shares as of the date of granting Entitlements of all tranches and, most importantly, the occurrence of Sale Transactions. Therefore, the implementation of the Incentive Program itself is considered a future and uncertain event at this point. At the same time, the Issuer indicates that, as of the date of publication of this report, it is not aware of any events that would indicate the possibility of the occurrence of a Sale Transaction, including any negotiations with a potential investor that would meet the parameters required for the fulfillment of the condition of a Sale Transaction. Despite the merely conditional and potential nature of the implementation of the Incentive Program, due to regulations under IFRS 2 “Share-based Payment”, the Company is required to determine the value of the Entitlements granted. As of the date of publication of this report, the estimated total value of Entitlements granted to Participants nominated to the Program under the first tranche, based on the current valuation of the Company’s shares, is PLN 40,183 thousand. Information on the progress of the Incentive Program, particularly with regard to the number of participants, the number of Entitlements granted and vested, and their valuation, will be updated in the Company’s periodic reports in accordance with current legal regulations, including in particular International Financial Reporting Standards, in particular, IFRS 2 “Share-based Payment”. • On September 9, 2022 the Supervisory Board of the Company approved the Regulations of Incentive Program (hereinafter: „Regulations”) for the key personnel of DataWalk S.A. (hereinafter referred to as the „Incentive Program”) and also approved the decisions of the Executive Board in the scope of: – selecting Persons Eligible to participate in the Incentive Program, – the number of Entitlements that may be granted to individual Program Participants, and – Vesting Conditions. The Regulations and the above-mentioned criteria of participation and Vesting Conditions were approved on the basis of the Issuer’s Executive Board Resolutions No. 05-07/08/2022 of August 31, 2022, the adoption of which was reported by the Company in the current report No. 38/2022 on August 31, 2022, as well as under the authorization granted in the Resolution of the Ordinary General Meeting of the Company No. 20 of 30/06/2022 on the establishment of an Incentive Program based on shares for members of the key personnel of DataWalk S.A., the undertaking of which was announced by the Company in the current report No. 24/2022 on June 30, 2022. 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: 513.298,80 zł w całości wpłacony Page | 39 FACTORS EXPECTED TO AFFECT FURTHER GROUP’S DEVELOPMENT 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 • Growing importance of data processing, data analysis and their usage (Big Data), • Situation on the insurance market in Western Europe and Poland, • Increase in the scale and quality of activities aimed at counteracting money laundering and counteracting tax avoidance, • Growing number of new company registrations in Western Europe and Poland, • Automation of data set analysis processes, • Increasing user-friendliness of tools for analyzing data sets, • Development of political and economic situation in Ukraine. Elements and internal trends that may affect the Group's perspectives • Perspective of total revenues and expenses generated, • Level of planned expenditures on marketing and sales activities, • Level of planned costs related to staff recruitment and purchase of IT services, • Level of planned investments. 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: 513.298,80 zł w całości wpłacony Page | 40 COMPANY'S AUTHORITIES The Executive Board On June 30, 2022 and at the date of approval of this report for publication the composition of the Executive Board is as follows: Paweł Wieczyński, Chairman of the Board Coordinates activities related to operations of the Company, shaping and implementing the sales policy, HR (except those reserved for other Executive Board Members) and PR/IR. Krystian Piećko, Member of the Board Responsible for the preparation and development of the product strategy based on the latest technologies. Łukasz Socha, Member of the Board Coordinates activities of the administrative division of the Company, including accounting and financial, legal, tax and financial reporting. In the 6-month period ended June 30, 2022, the DataWalk S.A. Executive Board was as follows: The Executive Board Period of performing the function Paweł Wieczyński 01/01/2022 – 06/30/2022 Krystian Piećko 01/01/2022 – 06/30/2022 Łukasz Socha 01/01/2022 – 06/30/2022 Source: Issuer. The current Executive Board of the Issuer was appointed by the resolutions of the Supervisory Board of June 1, 2021 (except the above-mentioned resolution of December 21, 2021 on appointing Mr. Łukasz Socha to the Executive Board of the Company) for a joint, 3-year term of office, which began on July 1. As a result of changes to the Commercial Companies Code, which will take effect on October 13, 2022, the above-mentioned term will end on the date the General Meeting approves the Company's financial statements for 2024. Until the date of this report, the composition of the Issuer's Executive Board has not changed. 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: 513.298,80 zł w całości wpłacony Page | 41 The Supervisory Board On June 30, 2022, 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 6-month period ended June 30, 2022, the composition of the Issuer’s Supervisory Board of the Company is as follows: The Supervisory Board Period of performing the function Wojciech Dyszy 01/01/2022 – 06/30/2022 Grzegorz Dymek 01/01/2022 – 06/30/2022 Roman Pudełko 01/01/2022 – 06/30/2022 Rafał Wasilewski 01/01/2022 – 06/30/2022 Filip Paszke 01/01/2022 – 06/30/2022 Source: Issuer. On May 30, 2022, the Company's Executive Board received the resignation of Mr. Rafał Wasilewski from his position as a member of the Company's Supervisory Board, effective June 30, 2022, which was his last day as a member of the Issuer's Supervisory Board. On June 30, 2022, based on Resolution No. 21, the Company's Annual General Meeting appointed, effective July 1, 2022. Mr. Ola Malm to serve as a member of the Supervisory Board for the current joint 3-year term of the Company's Supervisory Board. According to a resolution of the Supervisory Board dated July 28, 2022, there was a change in the position of Chairman of the Company's Supervisory Board. Under the above-mentioned resolution, as of July 29, 2022, this position was assumed by Mr. Filip Paszke. As of the date of approval of this report for publication, i.e. September 14, 2022, the composition of the Supervisory Board is as follows: • Mr. Filip Paszke - Chairman of the Supervisory Board • Mr. Wojciech Dyszy - Vice Chairman of the Supervisory Board, • Mr. Roman Pudełko - Member of the Supervisory Board • Mr. Grzegorz Dymek - Member of the Supervisory Board, • Mr. Ola Malm - Member of the Supervisory Board. The Issuer's current Supervisory Board was appointed for a joint 3-year term, which began on July 1, 2021 (except to the above-mentioned personnel changes in the composition of the Supervisory Board). As a result of changes to the Commercial Companies Code, which will take effect on October 13, 2022, the above-mentioned term will end on the date the General Meeting approves the Company's financial statements for 2024. 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: 513.298,80 zł w całości wpłacony Page | 42 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 company has no branches. 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: 513.298,80 zł w całości wpłacony Page | 43 DataWalk Inc. Basic information about an entity related by capital with the Issuer as at 06/30/2022. 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: 31 884 thous. PLN Revaluation adjustments: -31 884 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. 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: 513.298,80 zł w całości wpłacony Page | 44 Overview of the DataWalk Capital Group DataWalk organizational structure of the Group as at June 30, 2022 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 6-month period ended June 30, 2022 and as at the date of this report, there were no changes regarding the management rules of the DataWalk Group and DataWalk S.A. DataWalk S.A. DataWalk Inc. (100,00% share in the share capital and votes) 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: 513.298,80 zł w całości wpłacony Page | 45 THE SHAREHOLDING STRUCTURE OF THE DATAWALK S.A. Shareholder structure as at September 14, 2022 (share in the total number of votes) Source: Issuer. As at the date of approval of this report for publication, i.e. September 14, 2022, 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 22,89% 32,43% Funds managed by Investors Towarzystwo Funduszy Inwestycyjnych S.A. 2 400 000 400 000 7,79% 6,83% Funds manager by Nationale- Nederlanden Powszechne Towarzystwo Emerytalne S.A. 3 304 146 304 146 5,93% 5,19% Other shareholders 3 253 842 3 253 842 63,39% 55,55% Total 5 132 988 5 857 988 100,00% 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. 1 According to the current report no. 39/2022 of September 2, 2022. 2 According to the current report no. 16/2015 of September 16, 2015. 3 According to the current report no. 39/2020 of November 2, 2020. FGP Venture sp. z o.o. 32,43% Funds managed by Investors Towarzystwo Funduszy Inwestycyjnych S.A. 6,83% Funds managed by Nationale-Nederlanden Powszechne Towarzystwo Emerytalne S.A. 5,19% Other shareholders 55,55% 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: 513.298,80 zł w całości wpłacony Page | 46 Shareholder structure as at May 24, 2022 (share in the total number of votes) Source: Issuer. As at May 24, 2022, 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. 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. 6 According to the current report no. 39/2020 of November 2, 2020. FGP Venture sp. z o.o. 33,86% Funds managed by Investors Towarzystwo Funduszy Inwestycyjnych S.A. 7,13% Funds managed by Nationale-Nederlanden Powszechne Towarzystwo Emerytalne S.A. 5,42% Other shareholders 53,59% 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: 513.298,80 zł w całości wpłacony Page | 47 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 September 14, 2022. Shareholder Position Number of shares Nominal value of shares (in PLN) Paweł Wieczyński President of the Executive Board 56 701 5 670,10 Krystian Piećko Member of the Executive Board 55 916 5 591,60 Łukasz Socha Member of the Executive Board 525 52,50 Filip Paszke Chairman of the Supervisory Board 0 0 Wojciech Dyszy Vice-chairman of the Supervisory Board 1 000 100,00 Roman Pudełko Member of the Supervisory Board 15 918 1 591,80 Grzegorz Dymek Member of the Supervisory Board 0 0 Ola Malm Member of the Supervisory Board 0 0 Source: Issuer. * Two 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 14, 2022" and "Shareholder structure as at May 24, 2022". The table below presents ownership of shares DataWalk SA by managers and supervisors at May 24, 2022. Shareholder Position Number of shares Nominal value of shares (in PLN) Paweł Wieczyński President of the Executive Board 56 376 5 637,60 Krystian Piećko Member of the Executive Board 55 916 5 591,60 Łukasz Socha Member of the Executive Board 0 0 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 May 24, 2022". Own shares The Company has no own shares. 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: 513.298,80 zł w całości wpłacony Page | 48 DATAWALK S.A. SUMMARY OF THE CONDENSED SEPARATE SEMI-ANNUAL FINANCIAL STATEMENT for the 6-month period ended 30 th June, 2022 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: 513.298,80 zł w całości wpłacony Page | 49 SEPARATE FINANC IAL STA TEMENT Separate Statement of Financial Position (in thousands of PLN) ASSETS 06/30/2022 12/31/2021 A. Non-current assets 25 551 21 172 I. Fixed assets 497 407 II. Goodwill 390 390 III. Intangible assets 20 636 15 496 IV. Right-of-use assets 488 698 V. Investments in subsidiaries 0 0 VI. Long-term receivables 0 0 VII. Deferred tax assets 411 617 VIII. Long-term prepayments 3 129 3 565 B. Current assets 44 977 56 851 I. Contract assets 4 947 309 II. Trade receivables 3 367 5 590 III. Income tax receivables 0 0 IV. Other receivables 1 822 2 498 V. Financial assets 90 0 VI. Prepayments 1 391 800 VII. Cash and cash equivalents 33 360 47 655 TOTAL ASSETS 70 528 78 023 EQUITY AND LIABILITIES 06/30/2022 12/31/2021 A. Equity 62 063 70 440 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 -76 644 -65 746 V. Net profit (loss) for the current year -8 376 -10 897 VI. Reserve capital 2 771 2 771 B. Long-term liabilities 182 67 I. Deferred tax liabilities 0 0 II. Lease liabilities 102 67 III. Incentive program liabilities 80 0 C. Short-term liabilities 8 282 7 516 I. Trade liabilities 2 163 1 914 II. Income tax liabilities 0 0 III. Lease liabilities 401 644 IV. Other liabilities 1 118 746 V. Other provisions 1 568 1 025 VI. Contract liabilities 3 033 3 187 TOTAL EQUITY AND LIABILITIES 70 528 78 023 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: 513.298,80 zł w całości wpłacony Page | 50 NET ASSET VALUE PER SHARE 06/30/2022 12/31/2021 Net asset value 62 063 70 440 Number of shares (pcs.) 4 886 048 4 886 048 Net asset value per share (in PLN) 12,70 14,42 Diluted number of shares (pcs.) 4 975 047 4 975 047 Diluted net asset value per share (in PLN) 12,47 14,16 The net asset value per share was calculated in relation to the number of the Company's shares at the balance sheet date. The diluted number of shares in the Company at June 30, 2022 and at December 31, 2021 amounted to 4 975 047, including 88 999 shares under the incentive program. 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: 513.298,80 zł w całości wpłacony Page | 51 Separate Profit and Loss Account with The Statement of Comprehensive Income (in thousands of PLN) PROFIT AND LOSS ACCOUNT 01/01/2022 – 06/30/2022 01/01/2021 – 06/30/2021 04/01/2022 – 06/30/2022 04/01/2021 – 06/30/2021 Continuing operations A. Revenues 13 092 12 051 10 547 9 459 B. Operating costs 13 200 8 528 7 508 3 805 Materials and energy 380 65 178 38 Employee benefits 2 685 2 354 1 523 986 Amortization and depreciation 1 300 718 665 367 External services 8 527 5 251 4 970 2 340 Other costs 309 141 174 75 C. Profit/Loss on sales -108 3 523 3 038 5 654 Other operating income 182 242 114 112 Other operating costs 39 1 39 0 Loss (profit) from expected credit losses 3 197 2 16 D. Operating profit (loss) 32 3 567 3 112 5 750 Financial income 503 62 166 -328 Financial costs 8 475 6 754 4 157 3 775 E. Pre-tax profit (loss) -7 940 -3 126 -880 1 646 Income tax 436 0 280 0 F. Net profit (loss) from continuing operations -8 376 -3 126 -1 160 1 646 Discontinued operations Profit (loss) from discontinued operations 0 0 0 0 G. Net profit (loss) -8 376 -3 126 -1 160 1 646 STATEMENT OF COMPREHENSIVE INCOME 01/01/2022 – 06/30/2022 01/01/2021 – 06/30/2021 04/01/2022 – 06/30/2022 04/01/2021 – 06/30/2021 Net profit (loss) -8 376 -3 126 -1 160 1 646 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 -8 376 -3 126 -1 160 1 646 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: 513.298,80 zł w całości wpłacony Page | 52 PROFIT (LOSS) PER SHARE ATTRIBUTABLE TO: 01/01/2022 – 06/30/2022 01/01/2021 – 06/30/2021 04/01/2022 – 06/30/2022 04/01/2021 – 06/30/2021 Continuing operations Number of shares (pcs.) 4 886 048 4 886 048 4 886 048 4 886 048 Profit (loss) per share (in PLN) -1,71 -0,64 -0,24 0,34 Diluted number of shares (pcs.) 4 975 047 4 975 047 4 975 047 4 975 047 Diluted profit (loss) per share (in PLN) -1,68 -0,63 -0,23 0,33 Discontinued operations Number of shares (pcs.) 4 886 048 4 886 048 4 886 048 4 886 048 Profit (loss) per share (in PLN) 0 0 0 0 Diluted number of shares (pcs.) 4 975 047 4 975 047 4 975 047 4 975 047 Diluted profit (loss) per share (in PLN) 0 0 0 0 Continuing and discontinued operations Number of shares (pcs.) 4 886 048 4 886 048 4 886 048 4 886 048 Profit (loss) per share (in PLN) -1,71 -0,64 -0,24 0,34 Diluted number of shares (pcs.) 4 975 047 4 975 047 4 975 047 4 975 047 Diluted profit (loss) per share (in PLN) -1,68 -0,63 -0,23 0,33 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 half of 2022 and for the first half of 2021 was 4 886 048. The weighted average diluted number of shares in the Company for the first half of 2022 and the first half of 2021 amounted to 4 975 047, including 88 999 shares under the incentive program. 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: 513.298,80 zł w całości wpłacony Page | 53 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 01/01/2022 489 133 859 9 965 2 771 -65 746 -10 897 70 440 Equity increase (decrease) 0 0 0 0 -10 897 2 521 -8 376 Total comprehensive income 0 0 0 0 0 -8 376 -8 376 Net profit (loss) 0 0 0 0 0 -8 376 -8 376 Share capital increase 0 0 0 0 0 0 0 Distribution of profit (loss) for previous year 0 0 0 0 -10 897 10 897 0 Changes in equity resulting from IFRS 2 0 0 0 0 0 0 0 Balance as at 06/30/2022 489 133 859 9 965 2 771 -76 644 -8 376 62 063 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 Equity increase (decrease) 0 0 0 0 -4 421 1 295 -3 126 Total comprehensive income 0 0 0 0 0 -3 126 -3 126 Net profit (loss) 0 0 0 0 0 -3 126 -3 126 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 06/30/2021 489 133 859 9 965 2 771 -65 746 -3 126 78 211 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: 513.298,80 zł w całości wpłacony Page | 54 Separate Cash Flow Statement (in thousands of PLN) CASH FLOW STATEMENT 01/01/2022 – 06/30/2022 01/01/2021 – 06/30/2021 Cash flows from operating activities Net profit (loss) -8 376 -3 126 Adjustments, including: - amortization and depreciation 1 300 718 - foreign exchange gains (losses) 4 119 - interest expenses 11 19 - income from interest and dividends -5 0 - profit (loss) on investing activities 8 465 6 735 - share-based payment (incentive program) 0 0 - income tax of current period 0 0 - income tax paid 0 0 - change in receivables -3 432 -8 764 - change in inventories 0 0 - change in provisions 542 172 - change in incentive program liabilities 80 0 - change in liabilities other than incentive program 621 96 - change in prepayments 51 -107 - change in contract assets and contract liabilities -4 792 -451 - other adjustments -32 -52 Net cash generated (used) in operating activities -5 562 -4 641 Cash flows from investing activities Purchase of intangible assets 6 018 3 853 Purchase of property, plant and equipment 170 87 Proceeds from sale of property, plant and equipment 0 0 Purchase of subsidiaries shares, net of cash 2 135 6 735 Short term bank deposits (over 3 months) 90 0 Proceeds from governmental subsidies 32 52 Interest received 5 0 Net cash generated (used) in investing activities -8 376 -10 623 Cash flows from financing activities Proceeds from issue of share capital 0 0 Proceeds from loans and borrowings 0 0 Payment of finance lease liabilities 341 301 Interest paid 11 19 Net cash generated (used) in financing activities -352 -320 Total net cash flows -14 291 -15 584 Opening balance of cash 47 655 71 625 Change in cash due to foreign currency translation -4 -119 Change in cash balance, net -14 295 -15 703 Closing balance of cash 33 360 55 922 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: 513.298,80 zł w całości wpłacony Page | 55 CHANGES IN ACCOUNTING POLICIES USED The description of accounting principles and policies applied by the Issuer can be found in the financial statements for the year ended December 31, 2021, which was made public on April 27, 2022. The accounting principles (policies) used to prepare the condensed interim consolidated financial statements for the 6-month period ended June 30, 2022 are consistent with those used in the preparation of the Group's financial statements for the year ended December 31st, 2021, except for the one which is described below. Starting from January 1, 2022, the Company recognizes single, usable items as fixed assets that meet the criteria specified for fixed assets in IFRS 16, if the purchase price (production cost) is equal or higher than PLN 10 000. Fixed assets below this threshold are subject to one-time depreciation or are expensed in the month of purchase, unless they do not constitute a significant asset due to the nature of the Company's operations. During the six months ended June 30, 2022, there were no significant changes in how estimates were made compared to the principles described in the Group's annual consolidated financial statements for the year ended December 31, 2021. However, due to the commencement of the cash-settled share-based payment incentive program, there was a need to recognize new estimates in the first half of 2022, under IFRS 2 "Share-based Payment." The adopted change to the accounting principles for the interim condensed financial statements is consistent with the change assumed for the consolidated financial statements. ……………………………………… ……………………………………… ……………………………………… Paweł Wieczyński Krystian Piećko Łukasz Socha Chairman of the Board Member of the Board Member of the Board Wroclaw, September 14, 2022 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 Investor Relations investors@datawalk.com