TIDMTMT
RNS Number : 6625S
TMT Investments PLC
21 March 2016
21 March 2016
TMT INVESTMENTS PLC
("TMT" or the "Company")
Final results for the year ended 31 December 2015
TMT Investments PLC, which invests in high-growth,
internet-based companies across a variety of sectors, is pleased to
announce its final results for the year ended 31 December 2015.
-- NAV per share of US$1.91 (up 40% from US$1.36 as of 31 December 2014)
-- 1 full (Tracks) and 1 partial (Pipedrive) cash exit
-- 10 positive revaluations, including significant uplifts in
values of our portfolio stars Backblaze, Depositphotos, LeTote,
Pipedrive, Virool, and Wrike
-- 2 write-downs (Unicell and Appsindep)
-- US$1.43 million allocated to new and follow-on investments
(Depositphotos, ScentBird, and Weaved)
-- Diversified portfolio of 31 companies focused around mobile
software applications, cloud solutions, social discovery shopping,
and business SaaS tools
-- Many portfolio companies continue to experience rapid growth
Alexander Selegenev, Executive Director of TMT, commented:
"2015 was our fifth full year as a publicly traded company. As
reported in our 2014 Annual Report, given the rapid growth
experienced by a significant number of our portfolio companies, we
expected 2015 to produce a number of positive revaluations across
our portfolio. We are delighted that this is exactly what happened:
our NAV per share as of 31 December 2015 increased by 40% to
US$1.91, despite two sizable write-downs. It is especially pleasing
to see that a number of companies in which we invested at an
earlier stage have attracted the attention of large, blue-chip
investment groups at higher valuations in order to fund their
continued growth.
We continue to see exciting investment opportunities in our
chosen sectors and look forward to updating our shareholders on the
Company's progress in the near future."
The Annual Report and Accounts for the year ended 31 December
2015 are available on the Company's website at
www.tmtinvestments.com, where an electronic copy can be
accessed.
For further information contact:
TMT Investments Plc +44 1534 281 843
Alexander Selegenev alexander.selegenev@tmtinvestments.com
www.tmtinvestments.com
ZAI Corporate Finance
Ltd.
NOMAD
Richard Morrison/ Peter
Trevelyan-Clark/
Irina Lomova +44 20 7060 2220
Hybridan LLP
Broker
Claire Louise Noyce +44 20 3764 2341
Kinlan Communications Tel. +44 20 7638 3435
David Hothersall davidh@kinlan.net
EXECUTIVE DIRECTOR'S STATEMENT
2015 has been a successful year for the Company, with a big
number of sizable revaluations across our portfolio. As a result,
our NAV per share as of 31 December 2015 increased significantly to
US$1.91 (up 40% from US$1.36 as of 31 December 2014). Importantly,
this result takes into account two sizable impairments that were
not triggered by any actual independent transactions, but which the
management considered appropriate to recognise at this stage. TMT
has now invested in 39 companies since its flotation in December
2010 and has a diversified portfolio of 31 investees focused
primarily on mobile software applications, cloud solutions, social
discovery shopping, and business SaaS tools.
Portfolio Performance
For the last few years we have noted the biggest "reporting
challenge" faced by the Company, which is in the business of
investing in earlier-stage, privately held companies that typically
do not have a sufficiently long history of earnings. This means
that, regardless of how impressively some of our portfolio
companies may have grown in terms of revenue and operating metrics,
positive changes in fair value of our portfolio companies cannot be
justified under the IFRS rules unless there has been an independent
equity financing round or other measurable reliable evidence to
support a change in the valuation. On the other hand, any
write-offs or impairments are recorded immediately as negative
revenue on the Company's Profit and Loss Account. 2015 was an
important year for the Company, as we were delighted to see a large
number of significant positive portfolio revaluations among our
portfolio companies. It is especially pleasing to see that a number
of companies in which we invested at an earlier stage are now
attracting the attention of large, blue chip investment groups at
higher valuations to support their continued growth.
The following developments took place within the Company's
portfolio in 2015:
Cash and part-cash exits:
-- In September 2015, the Company's portfolio company Kanvas
Labs, Inc. ("Kanvas") was acquired by AOL, Inc. TMT's total maximum
potential consideration for the transaction (including amounts in
escrow) is US$797,529, representing a premium of approximately
US$247,000 (or 45%) to the value of TMT's original investment in
Kanvas made in November 2011 and March 2013, or an internal rate of
return ("IRR") of up to 11%.
-- In November 2015, the Company sold a small part of its equity
stake in Pipedrive, Inc. ("Pipedrive"), a SaaS-based sales CRM
software provider, for US$249,490 in cash. (Please see further
details of this transaction in the "Positive non-cash revaluations"
section below.)
Positive non-cash revaluations:
-- In February 2015, Drippler, a mobile tech discovery media
service, completed a sizable equity financing round. The
transaction represents an uplift of approximately US$97,000 (or
48%) in the fair value of TMT's investment in Drippler, compared to
the amount announced as of 30 June 2014.
-- In April 2015, Wrike, a SaaS-based work management platform,
completed a US$15 million equity financing round. The transaction
represents an approximately US$2.3 million (or 116%) uplift in the
fair value of TMT's investment in Wrike, compared to the latest
reported amount reported as of 31 December 2014.
-- In April 2015, Pipedrive, a SaaS-based sales CRM software
provider, completed a US$9 million equity financing round led by
Bessemer Venture Partners. The transaction represents an
approximately US$1.82 million (or 235%) uplift in the fair value of
TMT's investment in Pipedrive, compared to the latest reported
amount as of 31 December 2014.
-- In May 2015, farm management software provider VitalFields
completed a new equity financing round. The transaction represents
an uplift of approximately US$36,000 (or 27%) in the fair value of
TMT's investment in VitalFields, compared to the latest reported
amount as of 31 December 2014.
-- In June 2015, PandaDoc, a SaaS-based sales management tool,
completed a US$5 million equity financing round. The transaction
represents an uplift of approximately US$90,000 (or 22%) in the
fair value of TMT's investment in PandaDoc, compared to the latest
reported amount as of 31 December 2014.
-- In September 2015, Drupe, a mobile app that brings all your
contacts and communication apps together in one place, completed an
equity financing round. The transaction represents an uplift of
approximately US$0.3 million (or 132%) in the fair value of TMT's
investment in Drupe, compared to the latest reported amount as of
31 December 2014.
-- In October 2015, Virool, a native video advertising platform,
completed a sizable equity financing round. The transaction
represents an approximately US$1.31 million (or 161%) uplift in the
fair value of TMT's investment in Virool, compared to the latest
reported amount as of 31 December 2014.
-- In November 2015, the Company sold a small part of its equity
stake in Pipedrive, Inc. ("Pipedrive"), a SaaS-based sales CRM
software provider. The transaction represents a further US$751,212
(or 29%) uplift in the fair value of TMT's investment in Pipedrive,
compared to the amount announced as of 30 June 2015. TMT's cash
consideration received pursuant to the transaction is US$249,490.
The Company's remaining equity stake in Pipedrive is worth
approximately US$3.1m, which represents a further US$0.5m uplift
compared to the previous valuation announced as of 30 June
2015.
-- In December 2015, LeTote, a Netflix-style fashion rental
platform, completed a US$15 million equity financing round. The
transaction represents an uplift of approximately US$0.62 million
(or 137%) in the fair value of TMT's investment in LeTote, compared
to the latest reported amount as of 31 December 2014.
-- In December 2015, Depositphotos, a stock photo marketplace,
completed a US$5 million equity financing round, led by the venture
capital arm of the European Bank for Reconstruction and Development
("EBRD"). The transaction represents an uplift of approximately
US$8.12 million (or 163%) in the fair value of TMT's investment in
Depositphotos, compared to the latest reported amount as of 31
December 2014.
-- Based on the results of an independent valuation report
commissioned by Backblaze, Inc. ("Backblaze"), the fair value of
TMT's equity stake in Backblaze has increased by approximately
US$3.4 million (or 55%), compared to the amount reported as of 31
December 2014.
Impairments and write-offs:
-- The Board of TMT considers it prudent to incur an impairment
charge equal to US$1,527,383, or 51.2% of the fair value of the
Company's investment in Unicell. Unicell's traditional business has
reduced significantly in the last two years, and the company is
quite leveraged. On the other hand, Unicell's 50% equity stake in
Pango, a successful and fast-growing parking payment operator in
Israel, has become more valuable. The combined valuation produces
the fair value of TMT's stake in Unicell of US$1,455,088, compared
to US$2,982,471 reported as of 31 December 2014.
-- Online games developer AppsIndep, in which TMT invested in
2012, has experienced difficulties in gaining satisfactory traction
for games launched in the last two years. Accordingly, the Board of
TMT considers it prudent to incur an impairment charge equal to
US$1,397,764, or 75% of the fair value of the Company's investment
in AppsIndep reported as of 31 December 2014.
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Key developments for the 10 largest portfolio holdings in 2015
(compared to 2014; source: TMT's portfolio companies)
Depositphotos (photobank):
-- Revenues up 21%
-- Total number of files in the photobank up 45%
-- $5m new equity raised, with EBRD leading the round
Backblaze (online data backup and cloud storage provider):
-- Revenues up 25%
-- Total number of licensed computers up 30%
-- Launched "B2": a new low-cost commercial cloud storage
product (direct competitor of Amazon's S3).
Wanelo (online social shopping platform):
-- Revenues up 311%
-- Total subscribers up 19%
-- Over 550,000 stores and 30 million products on the platform
Wrike (work management and collaboration software):
-- Revenues up 131%
-- Total number of paid accounts up 55%
-- $15m new equity raised from Scale Venture Partners
Pipedrive (sales CRM software):
-- Revenues up 116%
-- Total paying customers up 84%
-- $9m new equity raised from Bessemer Ventures
Adinch (online advertising platform):
-- Revenues up 24%
-- Russian part of the business negatively affected by the financial crisis
Virool (native video advertising platform):
-- Sizable new equity round completed
-- Significant growth in new clients and revenues
Unicell (provider of digital marketing solutions and mobile
applications and services):
-- Traditional business is not growing
-- Generally breakeven, but quite leveraged
-- 50%-owned Pango, a parking payment operator in Israel, is
fast-growing and successfully developing
LeTote (Netflix-style fashion rental platform):
-- Revenues up more than 400%
-- $15m new equity raised
Anews (news reading app):
-- Total app downloads up 33% to over 3.5m
-- Revenues up 56%
New investments
In 2015 the Company invested US$400,000 in fragrance
subscription service ScentBird, as well as made additional
investments in two existing portfolio companies (US$1,000,000 in
Depositphotos and US$27,000 in Weaved).
NAV per share
The Company's net asset value per share as of 31 December 2015
increased to US$1.91 (31 December 2014: US$1.36).
Operating Expenses
In 2015, the Company's Administrative Expenses of US$997,705
were notably below the 2014 levels (US$1,382,874). This is
generally attributed to the Company's less intensive investment
activities in 2015. Total Operating Expenses also decreased in the
reporting period due to the lower share-based option charge of
US$45,028 (2014: US$166,282). This is a non-cash item resulting
from the Company's share option program adopted in October
2012.
Financial position
As of 31 December 2015, the Company had US$1.16 million in cash
reserves. As of the date of this report, the Company has no debt
and approximately US$0.95 million in cash reserves.
Events after the reporting period
There were no material events subsequent to the end of the
reporting period.
Amendment to the Investing Policy
We propose to seek shareholder consent to amend the Company's
existing Investing Policy by replacing the intention to acquire
blocking stakes in private companies. Whilst the acquisition of
lower than blocking stakes is permitted, the Investing Policy
stated that this would be done "where it (the Company) sees ways to
increase the stakes to blocking or controlling stakes at a later
date." At the current time, this may not be feasible or desirable,
and so shareholders will be asked to approve the following
amendment to the existing Investing Policy:
Private Companies
The Company will target small and mid-sized companies and will
seek to secure at least significant blocking stakes and board
representation, where it considers that the Company and/or an
investee company would benefit from such an appointment. The
Company will consider making equity investments in lower than
blocking stakes only where it sees ways to increase the stakes to
blocking or controlling stakes at a later date...
The remainder of the Investing Policy remains unchanged.
Outlook
2015 was our fifth full year as a publicly traded company. As
reported in our 2014 Annual Report, given the rapid growth
experienced by a significant number of our portfolio companies, we
expected 2015 to produce a number of positive revaluations across
our portfolio. We are delighted that this is exactly what happened:
our NAV per share as of 31 December 2015 increased by 40% to
US$1.91, despite two sizable write-downs. It is especially pleasing
to see that a number of companies in which we invested at an
earlier stage have attracted the attention of large, blue-chip
investment groups at higher valuations in order to fund their
continued growth.
We continue to see exciting investment opportunities in our
chosen sectors and look forward to updating our shareholders on the
Company's progress in the near future.
Alexander Selegenev
Executive Director
Statement of Comprehensive Income
For the For
year ended the
31/12/2015 year
ended
31/12/2014
Notes USD USD
Losses on investments 3 (2,215,983) (23,911)
-------------------------------------------- ------ ------------ ------------
(2,215,983) (23,911)
Expenses
Share-based payment charge 15 (45,028) (166,282)
Administrative expenses 5 (997,705) (1,382,874)
-------------------------------------------- ------ ------------ ------------
Operating loss (3,258,716) (1,573,067)
Net finance income 7 7,964 11,079
-------------------------------------------- ------ ------------ ------------
Loss before taxation (3,250,752) (1,561,988)
Taxation 8 - -
-------------------------------------------- ------ ------------ ------------
Loss attributable to equity
shareholders (3,250,752) (1,561,988)
Other comprehensive income
for the year:
Change in fair value of available-for-sale
financial assets 16 18,505,974 2,171,251
-------------------------------------------- ------ ------------ ------------
Total comprehensive income
for the year 15,255,222 609,263
-------------------------------------------- ------ ------------ ------------
Loss per share
Basic and diluted loss per
share (cents per share) 9 (11.75) (5.96)
-------------------------------------------- ------ ------------ ------------
Statement of Financial Position
At 31 December At 31 December
2015 2014
USD USD
Notes
Non-current assets
Investments in equity
shares 10 49,483,857 31,854,151
Convertible loan notes
receivable 10 2,202,649 3,091,702
Total non-current assets 51,686,506 34,945,853
Current assets
Trade and other receivables 11 178,640 159,784
Cash and cash equivalents 12 1,159,789 2,639,070
Total current assets 1,338,429 2,798,854
Total assets 53,024,935 37,744,707
Current liabilities
Trade and other payables 13 39,377 59,399
Total liabilities 39,377 59,399
----------------------------- ------ ------------------------ ----------- ------------------------
Net assets 52,985,558 37,685,308
----------------------------- ------ ------------------------ ----------- ------------------------
Equity
Share capital 14 31,453,510 31,453,510
Share-based payment
reserve 16 165,454 392,659
Fair value reserve 16 28,614,592 10,108,618
Retained losses 16 (7,247,998) (4,269,479)
Total equity 52,985,558 37,685,308
----------------------------- ------ ------------------------ ----------- ------------------------
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Statement of Cash Flows
For the For the year
year ended 31/12/2014
ended
31/12/2015
USD USD
Notes
Operating activities
Operating loss (3,258,716) (1,573,067)
----------------------------------------------- ----- ----------- -----------------
Adjustments for non-cash items:
Profit on disposal of available-for-sale
assets 3 (645,387) (355,010)
Gain on conversion of loan notes
to equity - (2,221)
Impairment of available-for-sale
assets and accrued interest 3 2,937,509 451,482
Employee salaries settled by
issue of shares 14 - 300,000
Share-based payment charge 15 45,028 166,282
Amortized costs of convertible
notes receivable 3 6,533 14,036
(915,033) (998,498)
----------------------------------------------- ----- ----------- -----------------
Changes in working capital:
(Increase)/decrease in trade
and other receivables 11 (18,856) (80,252)
Decrease in trade and other
payables 13 (20,022) (36,609)
Net cash used by operating activities (953,911) (1,115,359)
----------------------------------------------- ----- ----------- -----------------
Investing activities
Interest received 7 7,964 11,079
Purchase of available-for-sale
assets 10 (1,561,762) (4,370,612)
Proceeds from sale of available-for-sale
assets 1,028,428 613,362
----------------------------------------------- ----- ----------- -----------------
Net cash used by investing activities (525,370) (3,746,171)
----------------------------------------------- ----- ----------- -----------------
Financing activities
Cash proceeds from issue of shares 14 - 4,258,331
Net cash from financing activities - 4,258,331
----------------------------------------------- ----- ----------- -----------------
Decrease in cash and cash equivalents (1,479,281) (603,199)
----------------------------------------------- ----- ----------- -----------------
Cash and cash equivalents at the
beginning of the year 2,639,070 3,242,269
----------------------------------------------- ----- ----------- -----------------
Cash and cash equivalents at the
end of the year 12 1,159,789 2,639,070
----------------------------------------------- ----- ----------- -----------------
Statement of Changes in Equity
For the year ended 31 December 2014 and for year ended 31
December 2015, USD
Share capital Share-based Fair value Retained losses Total
payment reserve reserve
Notes USD USD USD USD USD
Balance at 1
January 2014 26,895,179 695,970 7,937,367 (3,177,084) 32,351,432
----------------- ------ -------------- ---------------- ----------------- ---------------- ----------------
Total
comprehensive
income/(loss)
for the year - - 2,171,251 (1,561,988) 609,263
Issue of shares 14 4,558,331 - - - 4,558,331
Buy back and - - - - -
cancellation of
shares
Share-based
payment charge 15 - 166,282 - - 166,282
Lapse of share
options 15 - (469,593) - 469,593 -
Balance at 31
December 2014 31,453,510 392,659 10,108,618 (4,269,479) 37,685,308
----------------- ------ -------------- ---------------- ----------------- ---------------- ----------------
Total
comprehensive
income/(loss)
for the year - - 18,505,974 (3,250,752) 15,255,222
Issue of shares 14 - - - - -
Share-based
payment charge 15 - 45,028 - - 45,028
Transfers on
exercise /
lapse of share
options 15 - (272,233) - 272,233 -
----------------- ------ -------------- ---------------- ----------------- ---------------- ----------------
Balance at 31
December 2015 31,453,510 165,454 28,614,592 (7,247,998) 52,985,558
----------------- ------ -------------- ---------------- ----------------- ---------------- ----------------
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER
2015
1. Company information
TMT Investments Plc ("TMT" or the "Company") is a company
incorporated in Jersey with its registered office at Queensway
House, Hilgrove Street, St Helier, JE1 1ES, Channel Islands.
The Company was incorporated and registered on 30 September 2010
in Jersey under the Companies (Jersey) Law 1991 with registration
number 106628 under the name TMT Investments Limited. The Company
obtained consent from the Jersey Financial Services Commission
pursuant to the Control of Borrowing (Jersey) Order 1985 on 30
September 2010. On 1 December 2010 the Company re-registered as a
public company and changed its name to TMT Investments PLC.
The memorandum and articles of association of the Company do not
restrict its activities and therefore it has unlimited legal
capacity. The Company's ability to implement its Investing Policy
and achieve its desired returns will be limited by its ability to
identify and acquire suitable investments. Suitable investment
opportunities may not always be readily available.
The Company will seek to make investments in any region of the
world.
Financial statements of the Company are prepared by and approved
by the Directors in accordance with International Financial
Reporting Standards, International Accounting Standards and their
interpretations issued or adopted by the International Accounting
Standards Board as adopted by the European Union ("IFRSs"). The
Company's accounting reference date is 31 December.
2. Summary of significant accounting policies
2.1 Basis of presentation
The principal accounting policies applied by the Company in the
preparation of these financial statements are set out below and
have been applied consistently.
The financial statements have been prepared on a going concern
basis, under the historical cost basis as modified by the fair
value of available-for-sale financial assets, as explained in the
accounting policies below, and in accordance with IFRS. Historical
cost is generally based on the fair value of the consideration
given in exchange for assets.
2.2 Going concern
The Directors confirm that, after giving due consideration to
the financial position and expected cash flows of the Company; they
have a reasonable expectation that the Company will have adequate
cash resources to continue in operational existence for the
foreseeable future, and for at least one year from the date of
approval of these financial statements and they have therefore
adopted the going concern basis in preparing the financial
statements.
2.3 Segmental reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision-maker
who is responsible for allocating resources and assessing
performance of the operating segments and which has been identified
as the Board of Directors that make strategic decisions. For the
purposes of IFRS 8 'Operating Segments' the Company currently has
one segment, being 'Investing in the TMT sector'.
Even though the Company only has one segment, there are still
geographical disclosures that need to be made to comply with IFRS 8
'Operating Segments'.
The Company analyses revenue and non-current financial assets
according to the geographical location of the investment (see note
4).
2.4 Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements of the Company are
measured in United States Dollars ('US dollars', 'USD' or 'US$'),
which is the Company's functional and presentation currency.
(b) Transactions and balances
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Foreign currency transactions are translated into US$ using the
exchange rates prevailing at the dates of the transactions.
Exchange differences arising from the translation at the year-end
exchange rates of monetary assets and liabilities denominated in
foreign currencies are recognised in the statement of comprehensive
income.
Conversation rates, USD
-----------------------------------------------
Currency Average
rate,
At 31.12.2015 2015
----------------- -------------- --------
British pounds,
GBP 1.4819 1.5262
Euro, EUR 1.0934 1.0167
--------------------- -------------- --------
2.5 Cash and cash equivalents
Cash and cash equivalents consist of cash at bank and in hand,
deposits held at call with banks, bank overdrafts and other
short-term highly liquid investments with maturities of three
months or less from the date of acquisition.
2.6 Financial assets
Recognition and measurement
Investments are recognized and de-recognized on a date where the
purchase or sale of an investment is under a contract whose terms
require the delivery or settlement of the investment. The Company
manages its investments with a view to profiting from the receipt
of dividends and changes in fair value of equity investments.
"Available-for-sale" financial instruments include unlisted
equity investments and convertible promissory loan notes. Equity
instruments classified as available-for-sale are those which are
neither classified as held-for-trading nor designated as fair value
through profit or loss. Convertible promissory loan notes are
treated as similar in nature to the unlisted equity investments and
designated as available-for-sale.
Available-for-sale investments are carried at fair values except
for financial assets that do not have a quoted market price in an
active market and whose fair value cannot be reliably measured
which are measured at cost less any identified impairment losses at
the end of the period in accordance with the IAS 39 para 46 (c)
exemptions. Fair value information has therefore not been disclosed
for those investments.
Where there has been a relevant transaction during the year that
gives an indication of the fair value of the available-for-sale
unlisted shares, the shares are included at that fair value and the
increase or decrease in fair value is recognised in the investment
fair value reserve. The "price of recent investment" methodology is
used mainly for investments in venture capital companies and
includes cost of investment or valuation by reference to a
subsequent financing round. Valuation increases above cost are only
recognised if that round involved a new external investor and the
company is meeting milestones set by investors.
Investments are classified on recognition as "fair value through
profit and loss" when their fair values can be estimated reliably
on a regular basis and when they are managed on a fair value basis.
Fair value changes of investments at fair value through profit and
loss are included within profit/loss in the income statement. At 31
December 2015 all investments are classified as
"available-for-sale" and none are classified as "fair value through
profit and loss".
Financial assets that qualify as an associate as 20% or more of
the voting rights are held by the company, are exempt from IAS 28
'Investments in Associates', as TMT Investments plc is a venture
capital organisation. Such investments are therefore treated as
available-for-sale financial assets.
Income
Interest income from convertible notes receivable is recognized
as it accrues by reference to the principal outstanding and the
effective interest rate applicable, which is the rate that exactly
discounts the estimated future cash flows through the expected life
of the financial asset to the asset's carrying value.
Impairment of available-for-sale financial assets
A financial asset is considered to be impaired if objective
evidence indicates that one or more events have had a negative
effect on the estimated future cash flows of that asset. In the
case of available for sale assets, a significant or prolonged
decline in the fair value of the financial asset below its cost is
considered an indicator that the financial assets are impaired.
If objective evidence indicates that financial assets that are
carried at cost need to be tested for impairment, calculations are
based on information derived from business plans and other
information available for estimating their fair value. Any
impairment loss is included in profit/loss for the year in the
Statement of Comprehensive Income.
2.7 Net finance income
Net finance income comprises interest income on deposits.
Interest income is recognized as it accrues in the statement of
comprehensive income, using the effective interest method. Finance
costs comprise interest expenses on borrowings and the unwinding of
the discount on provisions.
2.8 Taxation
Deferred tax is provided in full using the liability method, on
temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements.
Deferred tax is not accounted for if it arises from initial
recognition of an asset or liability in a transaction other than a
business combination that, at the time of the transaction, affects
neither accounting nor taxable profit or loss. Deferred tax is
determined using tax rates that are expected to apply when the
related deferred tax asset is realised or when the deferred tax
liability is settled. Deferred tax assets are recognised to the
extent that it is probable that future taxable profits will be
available against which the temporary differences can be
utilised.
2.9 Equity instruments
Ordinary shares are classified as equity. Costs directly
attributable to the issue of new shares are shown in equity as a
deduction from the proceeds.
2.10 Share-based payments
The fair value of options granted to employees is recognized as
an employee expense, with a corresponding increase in equity, over
the period that the employees become unconditionally entitled to
the options. The amount recognized as an expense is adjusted to
reflect the actual number of share options that vest. For equity
settled share-based payment transactions other than transactions
with employees the Company measures the goods or services received
at their fair value, unless that fair value cannot be estimated
reliably. If this is the case the Company measures their fair
values and the corresponding increase in equity, indirectly, by
reference to the fair value of equity instruments granted.
The Company enters into arrangements that are equity-settled
share-based payments with certain employees. These are measured at
fair value at the date of grant, which is then recognized in the
statement of comprehensive income on a straight-line basis over the
vesting period, based on the Company's estimate of shares that will
eventually vest. Fair value is measured by use of an appropriate
model. In valuing equity-settled transactions, no account is taken
of any vesting conditions, other than conditions linked to the
price of the shares of TMT Investments. The charge is adjusted at
each year end date to reflect the actual number of forfeitures,
cancellations and leavers during the period. The movement in
cumulative charges since the previous year end is recognized in the
statement of comprehensive income, with a corresponding entry in
equity.
2.11 New IFRSs and interpretations not applied
The IASB has issued the following standards and interpretations
which have been endorsed by the European Union to be applied to
financial statements with periods commencing on or after the
following dates:
Effective for period beginning on or after
IFRS 9 Financial Instruments 1 January 2018
======= ===================================== ==========================================
IFRS 15 Revenue from Contracts with Customers 1 January 2017
======= ===================================== ==========================================
The Directors do not anticipate that the adoption of these
standards and interpretations will have a material impact on the
financial statements in the period of initial application and have
decided not to adopt any of them early.
2.12 Accounting estimates and judgements
Estimates and judgements need to be regularly evaluated and are
based on historical experience and other factors, including
expectations of future events that are believed to be reasonable
under the circumstances. The Company makes estimates and
assumptions concerning the future. The resulting accounting
estimates will, by definition, rarely equal the related actual
results.
The estimates and underlying assumptions are reviewed on an
on-going basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision affects
only that period or in the period of the revision and future
periods if the revision affects both current and future
periods.
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The estimates significant to the financial statements during the
year and at the year-end is the consideration of the fair value of
available-for-sale assets, the impairment of available-for-sale
assets and share-based payment calculations, as set out in the
relevant accounting policies shown above. A number of the
available-for-sale financial assets held by the Company are at an
early stage of their development. The Company cannot yet carry out
regular reliable fair value estimates of some of these investments.
Future events or transactions involving the companies invested in
may result in more accurate valuations of their fair values (either
upwards or downwards) which may affect the Company's overall net
asset value.
3 Losses on investments
For the year ended 31/12/2015 For the year ended 31/12/2014
USD USD
Gross interest income from convertible notes
receivable 82,672 86,597
Amortized costs of convertible notes receivable (6,533) (14,036)
Net interest income from convertible notes
receivable 76,139 72,561
Profit on disposal of equity investments 645,387 251,388
Profit on disposal of convertible notes - 103,622
Impairment of available-for-sale assets (2,937,509) (451,482)
Total net losses on investments (2,215,983) (23,911)
---------------------------------------------------- ------------------------------ ------------------------------
4 Segmental analysis
Geographic information
The Company has investments in six principal geographical areas
- USA, Israel, BVI, Cyprus, Estonia and Russia.
Non-current financial assets
As at 31/12/2015
USA Israel BVI Cyprus Estonia Russia Total
USD USD USD USD USD USD USD
-------------------- ----------- ---------- -------- -------- -------- ------- -----------
Equity investments 45,507,167 2,973,369 305,050 465,921 173,254 59,096 49,483,857
Convertible
notes 2,202,649 - - - - - 2,202,649
-------------------- ----------- ---------- -------- -------- -------- ------- -----------
Total 47,709,816 2,973,369 305,050 465,921 173,254 59,096 51,686,506
-------------------- ----------- ---------- -------- -------- -------- ------- -----------
As at 31/12/2014
USA Israel BVI Cyprus Estonia Russia Total
USD USD USD USD USD USD USD
-------------------- ----------- ---------- -------- ---------- -------- ------- -----------
Equity investments 25,490,710 3,806,652 305,050 1,863,685 328,958 59,096 31,854,151
Convertible
notes 2,954,852 - - - 136,850 - 3,091,702
-------------------- ----------- ---------- -------- ---------- -------- ------- -----------
Total 28,445,562 3,806,652 305,050 1,863,685 465,808 59,096 34,945,853
-------------------- ----------- ---------- -------- ---------- -------- ------- -----------
5 Administrative expenses
Administrative expenses include the following amounts:
For the year ended 31/12/2015 For the year ended 31/12/2014
USD USD
--------------------------- ------------------------------ ------------------------------
Staff expenses (note 6) 595,511 796,309
Professional fees 128,583 173,963
Legal fees 26,342 27,266
Bank and LSE charges 20,577 24,412
Audit and accounting fees 43,489 49,837
Rent 91,384 172,608
Other expenses 83,108 119,717
Currency exchange loss 8,711 18,762
--------------------------- ------------------------------ ------------------------------
997,705 1,382,874
--------------------------- ------------------------------ ------------------------------
6 Staff expenses
For the year ended 31/12/2015 For the year ended 31/12/2014
USD USD
-------------------- ------------------------------ ------------------------------
Directors' fees 199,031 356,269
Wages and salaries 396,480 440,040
595,511 796,309
-------------------- ------------------------------ ------------------------------
Wages and salaries shown above include salaries and bonuses
relating to 2015. These costs are included in administrative
expenses. In addition to the above, there are employment expenses
for share-based payments of US$45,028 (for the year ended 31
December 2014: US$166,282).
The average number of staff employed (excluding Directors) by
the Company during the year was 5 (2014: 5).
The Directors' fees for 2015 were as follows:
For the year ended 31/12/2015 For the year ended 31/12/2014
USD USD
---------------------- ------------------------------ ------------------------------
Alexander Selegenev 108,475 186,826
Yuri Mostovoy 50,000 115,500
James Joseph Mullins 30,556 32,912
Petr Lanin 10,000 21,031
---------------------- ------------------------------ ------------------------------
199,031 356,269
---------------------- ------------------------------ ------------------------------
The Directors' fees shown above are all classified as 'short
term employment benefits' under International Accounting Standard
24. The Directors do not receive any pension contributions or other
benefits.
Key management personnel of the Company are defined as those
persons having authority and responsibility for the planning,
directing and controlling the activities of the Company, directly
or indirectly. Key management of the Company are therefore
considered to be the Directors of the Company. There were no
transactions with the key management, other than their Directors
fees and share options.
7 Net finance income
For the year ended 31/12/2015 For the year ended 31/12/2014
USD USD
----------------- ------------------------------ ------------------------------
Interest income 7,964 11,079
7,964 11,079
----------------- ------------------------------ ------------------------------
8 Income tax expense
For the year ended 31/12/2015 For the year ended 31/12/2014
USD USD
---------------------- ------------------------------ ------------------------------
Current taxes
Current year - -
---------------------- ------------------------------ ------------------------------
Deferred taxes
Deferred income taxes - -
---------------------- ------------------------------ ------------------------------
- -
---------------------- ------------------------------ ------------------------------
The Company is incorporated in Jersey. No tax reconciliation
note has been presented as the income tax rate for Jersey companies
is 0%.
9 Loss per share
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The calculation of basic loss per share is based upon the net
loss for the year ended 31 December 2015 attributable to the
ordinary shareholders of US$3,258,716 (2014: net loss of
US$1,561,988) and the weighted average number of ordinary shares
outstanding calculated as follows:
Loss per share For the year ended 31/12/2015 For the year ended 31/12/2014
--------------------------------------------------- ------------------------------ ------------------------------
Basic loss per share (cents per share) (11.75) (5.96)
Loss attributable to equity holders of the entity (3,258,716) (1,561,988)
--------------------------------------------------- ------------------------------ ------------------------------
The weighted average number of ordinary shares outstanding
before and after adjustment for the effects of all dilutive
potential ordinary shares calculated as follows:
(in number of shares weighted during the year For the year ended 31/12/2015 For the year ended 31/12/2014
outstanding)
---------------------------------------------------- ------------------------------ ------------------------------
Weighted average number of shares in issue
Ordinary shares 27,744,962 26,199,590
27,744,962 26,199,590
---------------------------------------------------- ------------------------------ ------------------------------
Effect of dilutive potential ordinary shares
Share options (21,099) 1,004,720
---------------------------------------------------- ------------------------------ ------------------------------
Weighted average of shares for the year (fully
diluted) 27,723,863 27,204,310
---------------------------------------------------- ------------------------------ ------------------------------
The diluted loss per share for both 2015 and 2014 is kept the
same as the basic loss per share because the conversion of the
share options decreases the basic loss per share and is therefore
anti-dilutive.
10 Non-current financial assets
At 31 December 2015 At 31 December 2014
Available-for-sale financial assets, USD:
Investments in equity shares (i)
- unlisted shares 49,483,857 31,854,151
Convertible notes receivable (ii)
- promissory notes 2,202,649 3,091,702
------------------------------------------- -------------------- --------------------
51,686,506 34,945,853
------------------------------------------- -------------------- --------------------
Reconciliation of fair value measurements of non-current
financial assets:
Available-for-sale Total
----------------------------------------------- ---------------------------------- ------------
Unlisted Convertible
shares notes
USD USD USD
----------------------------------------------- ---------------- ---------------- ------------
Balance as at 1 January 2014 26,932,335 2,193,304 29,125,639
------------------------------------------------ ---------------- ---------------- ------------
Total gains or losses in 2014:
- in profit or loss - impairment (451,482) - (451,482)
- in other comprehensive income 2,171,251 - 2,171,251
Purchases (including consulting & legal fees) 3,074,752 1,295,860 4,370,612
Disposal of investment (carrying value) (258,352) (14,036) (272,388)
Conversion of notes to equity and net gain 385,647 (383,426) 2,221
------------------------------------------------ ---------------- ---------------- ------------
Balance as at 31 December 2014 31,854,151 3,091,702 34,945,853
------------------------------------------------ ---------------- ---------------- ------------
Total gains or losses in 2015:
- in profit or loss - impairment (2,292,123) - (2,292,123)
- in other comprehensive income 18,505,974 - 18,505,974
Purchases (including consulting & legal fees) 1,060,745 501,018 1,561,763
Disposal of investment (carrying value) (1,028,428) (6,533) (1,034,961)
Conversion and other movements 1,383,538 (1,383,538) -
------------------------------------------------ ---------------- ---------------- ------------
Balance as at 31 December 2015 49,483,857 2,202,649 51,686,506
------------------------------------------------ ---------------- ---------------- ------------
Available-for-sale investments are carried at fair values. Where
financial assets do not have a quoted market price in an active
market and their fair values cannot be reliably measured they are
measured at cost less any identified impairment losses at the end
of reporting period, in accordance with IAS 39 para 46 (c)
exemption.
Where there has been a relevant transaction during the year that
gives an indication of the fair value of the unlisted shares, the
shares are included at that fair value and the increase or decrease
in fair value is recognised in the fair value reserve. The "price
of recent investment" methodology is used mainly for investments in
venture capital companies and includes cost of investment or
valuation by reference to a subsequent financing round. Valuation
increases above cost are only recognised if that round involved a
new external investor and the company is meeting milestones set by
investor.
(i) Equity investments as at 31 December 2015:
Investee Date Value Additions Gain/loss Profit/ Disposals, Value Equity
company of at to from Impairment USD at 31 stake
initial 1 Jan equity Conversions changes charge, Dec owned
investment 2015, investments from in USD 2015,
USD during loan fair USD
the notes, value
period, USD of
USD equity
investments,
USD
--------------- ------------ ----------- ------------ ------------- ------------- ------------- ------------ ------------ -------
Unicell 15.09.2011 2,982,471 - - - (1,527,383) - 1,455,088 10.00%
DepositPhotos 26.07.2011 4,997,285 999,995 - 8,121,753 - - 14,119,033 23.85%
RollApp 19.08.2011 600,000 - - - - - 600,000 10.00%
Wanelo 21.11.2011 5,369,400 - - - - - 5,369,400 4.73%
Gild 05.12.2011 549,345 - - - - - 549,345 1.04%
ThusFresh 26.03.2012 379,355 - - - - - 379,355 3.53%
Backblaze 24.07.2012 6,225,917 - - 3,398,360 - - 9,624,277 15.34%
UM Liquidating
Trust 15.07.2014 29,273 - - - - - 29,273 5.89%
Gentoo
LABS 15.05.2014 260,000 - - - - - 260,000 6.88%
Favim 24.10.2012 305,050 - - - - - 305,050 20.00%
AppsIndep 12.11.2012 1,863,685 - - - (1,397,764) - 465,921 19.24%
Virool 29.08.2012 502,275 - - 1,311,576 - - 1,813,851 1.42%
Adinch 19.02.2013 2,400,001 - - - - - 2,400,001 22.43%
Tracks 24.11.2011 341,350 - - - 456,179 (651,300) 146,229 0.00%
Wrike 12.06.2012 1,991,150 - - 2,312,428 - - 4,303,578 3.68%
Graphicly 03.04.2013 140,000 - - - (12,362) (127,638) - 0.00%
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Oriense 27.01.2014 59,096 - - - - - 59,096 5.45%
E2C 15.02.2014 136,781 - - - - - 136,781 5.51%
Drippler 01.05.2014 302,400 - - - - - 302,400 1.45%
Weaved 13.06.2014 255,000 - - - - - 255,000 2.44%
Le Tote 21.07.2014 450,360 - - 618,518 - - 1,068,878 1.35%
Anews 25.08.2014 1,000,000 - - - - - 1,000,000 9.41%
Twtrland 01.09.2014 155,000 - - - - - 155,000 3.27%
Drupe 02.09.2014 230,000 60,750 - 304,392 - - 595,142 7.47%
Taxify 15.09.2014 328,958 - - - - - 328,958 2.80%
Pipedrive 30.07.2012 - - 808,206 2,347,515 189,208 (249,490) 3,095,439 4.43%
Quoteroller 11.07.2014 - - 409,912 83,596 - - 493,508 2.17%
VitalFields 20.12.2013 - - 165,420 7,834 - - 173,254 2.23%
Total 31,854,151 1,060,745 1,383,538 18,505,974 (2,292,123) (1,028,428) 49,483,857
----------------------------- ----------- ------------ ------------- ------------- ------------- ------------ ------------
(ii) Convertible loan notes as at 31 December 2015:
Investee Date of Value at Additions Capitalized Amortized Internal Profit on Disposals, Value at Term, Interest
company initial 1 Jan to consulting costs, movements, disposal/ USD 31 Dec years rate, %
investment 2015, convertible and legal USD USD Impairment 2015, USD
USD note fees, USD charge,
investments USD
during the
period, USD
------------- ------------ ---------- ------------ ------------ ---------- ------------ ----------- ----------- ---------- ------ ---------
Ninua 08/06/2011 500,000 - - - - - - 500,000 1.5 5.00%
Pipedrive 30/07/2012 775,352 33,026 - (172) (808,206) - - - -
Sharethis 26/03/2013 571,323 - - (399) - - - 570,924 5.0 1.09%
KitApps 10/07/2013 400,339 - - (292) - - - 400,047 1.0 2.00%
VitalFields 20/12/2013 136,850 28,570 - - (165,420) - - - -
Gentoo LABS 21/05/2014 100,475 - - (342) - - - 100,133 2.0 0.28%
Whale Path 02/06/2014 203,548 - - (2,493) - - - 201,055 2.0 5.00%
Quoteroller 11/07/2014 403,815 7,145 - (1,048) (409,912) - - - -
ScentBird 13.04.2015 - 400,000 5,000 (1,788) - - - 403,212 2.0 4.00%
Weaved 05.10.2015 - 27,277 - - - - - 27,277 1.0 7.70%
------------ ------------
Total 3,091,702 496,018 5,000 (6,533) (1,383,538) - - 2,202,649
--------------------------- ---------- ------------ ------------ ---------- ------------ ----------- ----------- ---------- ------ ---------
11 Trade and other receivables
At 31 December 2015 At 31 December
2014
USD USD
----------------------------------------- -------------------- ---------------
Prepayments 15,174 6,438
Interest receivable on promissory notes 163,165 152,528
Interest receivable on deposits 301 818
178,640 159,784
----------------------------------------- -------------------- ---------------
12 Cash and cash equivalents
The cash and cash equivalents as at 31 December 2015 include
cash on hand and in banks and deposits, net of outstanding bank
overdrafts. The effective interest rate at 31 December 2015 was
0.7%.
Cash and cash equivalents comprise the following:
At 31 December 2015 At 31 December
2014
USD USD
--------------- -------------------- ---------------
Deposits 500,000 1,000,000
Bank balances 659,789 1,639,070
--------------- -------------------- ---------------
1,159,789 2,639,070
--------------- -------------------- ---------------
The following table represents an analysis of cash and
equivalents by rating agency designation based on Fitch rating or
their equivalent:
At 31 December 2015 At 31 December 2014
USD USD
--------------- -------------------- --------------------
Bank balances
A rating 659,789 1,639,070
--------------- -------------------- --------------------
659,789 1,639,070
--------------- -------------------- --------------------
Deposits
A rating 500,000 1,000,000
--------------- -------------------- --------------------
500,000 1,000,000
--------------- -------------------- --------------------
1,159,789 2,639,070
--------------- -------------------- --------------------
13 Trade and other payables
At 31 December 2015 At 31 December
2014
USD USD
--------------------------- -------------------- ---------------
Directors' fees payable 7,471 23,902
Trade payables 6,992 34,874
Other current liabilities 92 623
Accrued expenses 24,822 -
--------------------------- -------------------- ---------------
39,377 59,399
--------------------------- -------------------- ---------------
14 Share capital
On 31 December 2015 the Company had an authorised share capital
of unlimited shares of no par value and had issued share capital
of:
At 31 December 2015 At 31 December
2014
USD USD
--------------------------------- -------------------------- ---------------
Share capital 31,453,510 31,453,510
Issued capital comprises: Number Number
Fully paid ordinary shares 27,744,962 27,744,962
--------------------------------- -------------------------- ---------------
Number of shares Share capital,
USD
--------------------------------- -------------------------- -----------------
Balance at 31 December 2014 27,744,962 31,453,510
Issue of shares - -
Share buy-back and cancellation - -
Balance at 31 December 2015 27,744,962 31,453,510
--------------------------------- -------------------------- -----------------
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There have been no changes to the Company's share capital
between the year-end date and the date of approval of these
financial statements.
15 Share-based payments
For the year ended 31/12/2015 For the year ended 31/12/2014
USD USD
------------------------------------- ------------------------------ ------------------------------
Share option (compensation expense) 45,028 166,282
------------------------------------- ------------------------------ ------------------------------
Total share-based payment charge 45,028 166,282
------------------------------------- ------------------------------ ------------------------------
On 24 October 2012, the Board of Directors approved a share
option plan (the "Plan") for directors, officers, employees of or
consultants to the Company and/or any company directly or
indirectly controlled by the Company.
Under the Plan, options for a total of 7,500,000 ordinary shares
in the Company, representing approximately 30% of the then issued
share capital (or 23% of the enlarged share capital at the time,
assuming full exercise of the options), could be made available at
an exercise price determined by the Board or its remuneration
committee, which would not be less than the closing middle market
price for the Company's share on AIM on the date of grant as
published by or on behalf of the London Stock Exchange plc.
Options were to vest on a daily basis over a period of 3 years
whilst the option holder remains eligible, and vested options could
be exercised on each anniversary of the grant, but if not exercised
within 1 year from the allowable date of exercise, would lapse.
The following options, without performance conditions, have been
granted under the Plan on 24 October 2012:
Option
Price Option Option
Option Year Price Year Price
Name Shares 1 2 Year 3
---------------------- ---------- -------- ------------ --------
German Kaplun
(Employee) 1,125,000 US$1.40 US$1.55 US$1.70
Alexander Morgulchik
(Employee) 1,125,000 US$1.40 US$1.55 US$1.70
Alexander Selegenev
(Director) 1,125,000 US$1.40 US$1.55 US$1.70
Artyom Inyutin
(Employee) 1,125,000 US$1.40 US$1.55 US$1.70
Yuri Mostovoy
(Director) 562,500 US$1.40 US$1.55 US$1.70
Alexander Pak
(Employee) 300,000 US$1.40 US$1.55 US$1.70
Levan Kavtaradze
(Employee) 150,000 US$1.40 US$1.55 US$1.70
TOTAL 5,512,500
---------------------- ---------- -------- ------------ --------
The fair value of services received in return for share options
granted is based on the fair value of share options and warrants
granted, measured using the Black-Scholes formula, using the
following assumptions:
(in USD, except Option Option Option
for number of shares Price Price Year Price
and percent) Year 1 2 Year 3
----------------------- ---------- ------------ ----------
Number of share
options granted 1,837,500 1,837,500 1,837,500
Fair value of share
option at date
of grant 0.25 0.15 0.09
Share price at
date of grant 1.65 1.65 1.65
Exercise price 1.40 1.55 1.70
Expected volatility,
per cent 9.39% 9.39% 9.39%
Option life, years 0-1 0-2 0-3
Expected dividends,
percent 0 0 0
Risk free interest
rate, percent 0.41% 0.41% 0.41%
------------------------- ---------- ------------ ----------
Expected volatility is estimated from the Company's share price
performance on AIM.
Weighted average
Number exercise price
of shares of share options
------------------------------ ------------ ------------------
Outstanding share options
at 31 December 2014 3,675,000 1.63
Options exercised during
the year ended 31 December
2015 - 0.00
Options expired during the
year ended 31 December 2015 (1,837,500) 1.55
Outstanding share options
at 31 December 2015 1,837,500 1.70
Exercisable share options
at 31 December 2015 1,837,500 1.70
------------------------------ ------------ ------------------
None of the options that vested in Year 2 under the Plan were
exercised, and those options have now lapsed.
16 Reserves
Share-based payment reserve Fair value reserve Retained losses Total
USD USD USD USD
----------------------------------- ---------------------------- ------------------- ---------------- ------------
Balance as at 1 January 2014 695,970 7,937,367 (3,177,084) 5,456,253
----------------------------------- ---------------------------- ------------------- ---------------- ------------
Loss for the year - - (1,561,988) (1,561,988)
Gain from changes in fair value - 2,171,251 - 2,171,251
Share-based payment charge 166,282 - - 166,282
Transfer on lapse of share options (469,593) - 469,593 -
Balance as at 31 December 2014 392,659 10,108,618 (4,269,479) 6,231,798
-----------------------------------
Loss for the year - - (3,250,752) (3,250,752)
Gain from changes in fair value - 18,505,974 - 18,505,974
Share-based payment charge 45,028 - - 45,028
Transfer on exercise of share
options (272,233) - 272,233 -
----------------------------------- ---------------------------- ------------------- ---------------- ------------
Balance as at 31 December 2015 165,454 28,614,592 (7,247,998) 21,532,048
----------------------------------- ---------------------------- ------------------- ---------------- ------------
17 Capital management
The capital structure of the Company consists of equity share
capital, reserves, and retained losses.
The Board's policy is to maintain a strong capital base so as to
maintain investor and market confidence and to enable the
successful future development of the business.
The Company is not subject to externally imposed capital
requirements.
No changes were made to the objectives, policies and process for
managing capital during the year.
18 Financial risk management and financial instruments
The Company has identified the following risks arising from its
activities and has established policies and procedures to manage
these risks. The Company's principal financial assets are cash and
cash equivalents, investments in equity shares, and convertible
notes receivable.
Credit risk
As at 31 December 2015 the largest exposure to credit risk
related to cash and cash equivalents, which was US$1,159,789. The
exposure risk is reduced because the counterparties are banks with
high credit ratings ("A" Liquidity banks) assigned by international
credit rating agencies. The Directors intend to continue to spread
the risk by holding the Company's cash reserves in more than one
financial institution.
(i) Exposure to credit risk
The carrying amount of the following assets represents the
maximum credit exposure. The maximum exposure to credit risk as at
31 December is as follows:
At 31 December 2015 At 31 December 2014
USD USD
------------------------------ -------------------- --------------------
Convertible notes receivable 2,202,649 3,091,702
Trade and other receivables 178,640 159,784
Cash and cash equivalents 1,159,789 2,639,070
------------------------------ -------------------- --------------------
3,541,078 5,890,556
------------------------------ -------------------- --------------------
Market risk
The Company's financial assets are classified as
available-for-sale and are measured at fair value. The measurement
of the Company's investments in equity shares and convertible notes
is largely dependent on the underlying trading performance of the
investee companies, but the valuation and other items in the
financial statements can also be affected by the interest rate and
fluctuations in the exchange rate.
Interest rate risk
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