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PINEAPPLE POWER CORPORATION PLC

Interim / Quarterly Report Sep 30, 2022

5053_ir_2022-09-30_5c0a7a38-ca7e-4073-834e-e90dd9d4cf7d.pdf

Interim / Quarterly Report

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30 September 2022

Pineapple Power Corporation Plc ("Pineapple" or "the Company") Interim Results

Pineapple Power Corporation Plc, a special purpose acquisition company, is pleased to present its interim unaudited results for the six-month period ended 30 June 2022.

Highlights:

  • The proposed acquisition of BVP Imvestments Ltimited which was announced iduring August 2021 was terminated on February 28, 2022 since the final terms of the acquisition could not be agreed.
  • Subsequent to the period end, the Company was successful in raising additional funds during a very difficult period economically for markets worldwide, which closed during the month of July. In total £357,000 was raised at a price of £0.03 per share. A Director, Andrew Holland and Corporate Finance Advisor, Clive de Larrabeiti subscribed, in aggregate, for 2,000,000 shares in the issue to add to their holdings.
  • Cash balance at the end of the period was £243,384. The majority of the Company's expenditure during the period were due to the significant expenses incurred in legal and due diligence costs involved in the proposed transaction with BVP.

Chairman's Statement

I am pleased to present the Company's interim unaudited financial statements to shareholders for the six months ended 30 June 2022.

The period under review was extremely busy and productive and, apart from the fundraising mentioned above, was focused on the search and identification of a suitable reverse takeover candidate following the breakdowm of talks with BVP. We are grateful for the support of our numerous shareholders and will continue to diligently pursue an RTO transaction and closing with the correct candidate.

Financial Review

For the six months to 30 June 2022, the Company reports a net loss of £186,763 (2021: £238,797 ). During the six months to 30 June 2022, the Company continued its strict financial discipline, incurring a net operating cash outflow of £317,050 (2021: inflow £902,240). The Company held cash at 30 June 2022 of £243,384 (2021: £930,035).

Directors

The following directors have held office during the period: Claudio Morandi Andrew Holland

Corporate Governance

The UK Corporate Governance Code (July 2018) ("the Code"), as appended to the Listing Rules, sets out the Principles of Good Corporate Governance and Code Provisions which are applicable to listed companies incorporated in the United Kingdom. As a standard listed company, the Company is not subject to the Code, but the Board recognises the value of applying the principles of the Code where appropriate and proportionate and has endeavoured to do so where practicable.

Responsibility Statement

The Directors are responsible for preparing the Unaudited Interim Condensed Financial Statements in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority ("DTR") and with International Accounting Standard 34 on Interim Reporting ("IAS 34"). The directors confirm that, to the best of their knowledge, this condensed interim report has been prepared in accordance with IAS 34 as contained in UK adopted IFRS.. The interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

  • an indication of important events that have occurred during the six months ended 30 June 2022 and their impact on the condensed financial statements for the period, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
  • related party transactions that have taken place in the six months ended 30 June 2022 and that have materially affected the financial position of the performance of the business during that period.

On behalf of the board Claudio Morandi

Director 30 September 2022

PINEAPPLE POWER CORPORATION PLC Interim Statement of Comprehensive Income (Unaudited) For the six months ended 30 June 2022

Notes Six months
ended
30 June
2022
Unaudited
£
Six months
ended
30 June
2021
Unaudited
£
Year
ended 31
December
2021
Audited
£
Revenue - - -
Administrative expenses (186,782)
_
(238,840)
_
(1,011,437)
_
Operating loss (186,782) _
(238,840)
-------
(1,011,437)
Interest receivable 19 43 84
Loss on ordinary activities before
taxation
_
(186,763)
_
(238,797)
___
(1,011,353)
Income tax expense 3 - - -
Loss for the period _
(186,763)
_
(238,797)
___
(1,011,353)
Other comprehensive income / (loss)
Total comprehensive loss for the
period attributable to equity holders
-
_
(186,
763)
_
-
_
(238,797)
_
-
_
(1,011,353)
_
Loss per share (basic and diluted)
attributable to equity holders (p)
4 (0.0031)p (0.0064)p (0.0170)p

The income statement has been prepared on the basis that all operations are continuing operations.

PINEAPPLE POWER CORPORATION PLC Interim Statement of Financial Position (Unaudited) As at 30 June 2022

At 31
At 30 June
2022
At 30June
2021
December
2021
Unaudited Unaudited Audited
Notes £ £ £
Fixed Assets
Equipment 935
______
1,523
_
1,229
_
Current assets
Prepayments and other receivables 6,345 3,621 6,344
Cash at bank and in hand 243,384
_
930,035
_
560,434
_
249,729
_
933,656 _ 566,778 ______
TOTAL ASSETS 250,664
_
935,179
_
568,007
----------
Current liabilities
Trade and other payables 138,056
______
31,374
______
268,636
_
TOTAL LIABILITIES 138,056
_
31,374
_
268,636
__
NET ASSETS/(LIABILITIES) 112,608
_
903,805
_
299,371
_
EQUITY
Share capital 5 597,362 597,362 597,362
Share premium 5 809,852 781,908 809,852
Share based payment reserve 168,240 28,062 168,240
Retained loss (1,462,846)
__
(503,527)
______
(1,276,083
__
TOTAL EQUITY 112,608
___
903,805
_
299,371
_

PINEAPPLE POWER CORPORATION PLC Statements of changes in equity (Unaudited) For the six months ended 30 June 2022

Share
Capital
Share
Premium
Retained
Loss
TOTAL
£ £ £ £ £
573,672 687,148 28,062 (264,730) 1,024,152
23,690 94,760 - - 118,450
- 27,944 (27,944) - -
- - 168,122 - 168,122
- - - (1,011,353) 1,011,353
597,362 809,852 168,240 (1,276,083) 299,371
(186,763) (186,763)
597,362 809,852 168,240 (1,482,846) 112,608
Account Share Based
Payment
Reserve
_________
__________
____________

PINEAPPLE POWER CORPORATION PLC Statement of cash flow (Unaudited) For the six months ended 30 June 2022

Six months Six months 12 months
to 30 to 30 to 31
June June December
2022 2021 2021
Cash flows from operating activities £ £ £
Loss for the period (186,764) (238,797) (1,011,353
Adjustments for: _ _ ___
Depreciation 294 295 589
Share based payment - - 168,122
_ _ --------------
Operating cashflow before working capital movements (186,470) (238,402) (842,642)
Decrease / (increase) in prepayments and other receivables - 1,188,207 (4,016)
Increase / (decrease) in other payables and accruals (130,580 (164,097) 73,165
Net cash flow from operating activities __ __ __
(317,050) 785,708 (773,493)
__ __ __
Investing activities
Purchases of equipment - (1,818) (1,818)
_ _ _
Net cash used in investing activities - (1,818) (1,818)
_ _ _
Financing activities
Net proceeds from issue of ordinary shares - 118,450 1,307,950
_ _ __
Net cash generated from financing activities - 118,450 1,307,950
_ ______ __
Net Increase in cash and cash equivalents (317,050) 902,240 532,639
Cash and cash equivalents at beginning of the period 560.434 27,795 27,795
Cash and cash equivalents at end of the period __ __ __
243,384 930,035 560,434
__ __ __

1 General information

Pineapple Power Corporation Plc (the "Company'') looks to identify potential companies, businesses or asset(s) that have operations in the clean and renewable energy sector.

The Company is domiciled in the United Kingdom and incorporated and registered in England and Wales, with registration number 09081452.

The Company's registered office is Studio 16, Cloisters House, 8 Battersea Park Road, London SW8 4BG.

Accounting policies

2

The principal accounting policies applied in preparation of these consolidated financial statements are set out below. These policies have been consistently applied unless otherwise stated.

Basis of preparation

The interim unaudited financial statements for the period ended 30 June 2022 have been prepared in accordance with IAS 34 Interim Financial Reporting. This interim financial information is not the Company's statutory financial statements and should be read in conjunction with the annual financial statements for the period ended 31 December 2021, which have been prepared in accordance with UK-adopted International accounting standards and have been delivered to the Registrars of Companies. The auditors have reported on those accounts; their report was unqualified, did not include references to any matters which the auditors drew attention by way of emphasis of matter without qualifying their report and did not contain statements under section 498 (2) or (3) of the Companies Act 2006.

The interim financial information for the six months ended 30 June 2022 is unaudited. In the opinion of the Directors, the interim financial information presents fairly the financial position, and results from operations and cash flows for the period.

The Directors have made an assessment of the Company's ability to continue as a going concern and are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company, therefore, continues to adopt the going concern basis in preparing its consolidated financial statements.

The financial information of the Company is presented in British Pounds Sterling (£).

Critical accounting estimates and judgements

The preparation of interim financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities and the reported amounts of income and expenses during the reporting period. Although these estimates are based on management's best knowledge of current events and actions, the resulting accounting estimates will, by definition, seldom equal related actual results.

In preparing the interim financial information, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements for the year ended 31 December 2021.

Income tax expense

3

No tax is applicable to the Company for the six months ended 30 June 2022. No deferred income tax asset has been recognised in respect of the losses carried forward, due to the uncertainty as to whether the Company will generate sufficient future profits in the foreseeable future to prudently justify this.

4 Loss per share

Basic loss per ordinary share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.

There are currently no dilutive potential ordinary shares.

Earnings
£
Weighted average
number of shares
Per-share
amount
unit pence
Loss per share attributed to
ordinary shareholders
(186,763) 59,736,211 (0.0031)p

5 Share capital

Number
of shares
Share Share
in issue capital premium Total
£ £ £
Balance at 31 December 2021 59,736,211 597,382 809,852 1,407,214
Movements during the period - - - -
Balance at 30 June 2022 59,736,211 597,382 809,852 1,407,214

The Company has one class of ordinary share which carries no right to fixed income.

6 Share Options

On 5 February, 2021 a total of 6,000,000 options were awarded to Directors and Advisors involved in the continuing advancement of the Company's goal to to complete a reverse take-over transaction in the renewable energy sector. The options vest and are exercisable 6 months from the date of grant and expire in two years from the date of grant. The exercise price is 11p per Ordinary Share.

Related party disclosures 7

Remuneration of directors and key management personnel

The remuneration of the Directors during the six-month period to 30 June 2022 amounted to £24,000 (30 June 2021: £24,000).

Shareholdings in the Company

Shares and options held by the Directors of the Company.

Shares Options
Mr Claudio Morandi
Mr Andrew Holland
2,000,000
2,000,000
1,250,000
1,250,000
Balance at 30 June 2022 4,000,000
_________
_________
2,500,000

8 Post Balance Sheet Events

In July 2022, the Company successfully raised £357,000 by the issue of new Shares at £0.03 per share.

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