ChallengerX Plc Management accounts for the quarters ended 2023 and 30 June 2023
01 November 2023 - 3:02AM
UK Regulatory
TIDMCXS
31 October 2023
ChallengerX plc
("ChallengerX", "CX"
or the "Company")
Management accounts for the quarters ended 30 September 2023 and 30 June 2023
ChallengerX (AQUIS: CXS), the trading company with principal activity of
employing both traditional and non-traditional marketing strategies to rapidly
"professionalise" amateur and semi-professional sports clubs around the world
announces its unaudited management accounts reports for the quarters ended 30
September 2023 and 30 June 2023.
This announcement contains inside information for the purposes of the UK Market
Abuse Regulation and the Directors of the Company are responsible for the
release of this announcement.
For further information, please contact:
Enquiries:
ChallengerX plc
John May, Chairman jmay@city-westminster.com
Stuart Adam, CFO sjadam@city-westminster.com
First Sentinel Corporate AQSE Corporate +44 20 3855 5551
Adviser Brian Stockbridge / Gabrielle
Cordeiro
Directors Statement
Introduction
ChallengerX plc (the "Company" or "ChallengerX") is an investment company quoted
on the Aquis Stock Exchange ("AQSE") Growth Market. The Company was incorporated
on 7 June 2021 and its shares were admitted to trading on 23 December 2021.
Activities during the periods
The company continued to advance its development of a platform for the promotion
and marketing of sports clubs in both a traditional and non-traditional way. In
particular the company worked hard on adding to its offerings for the upcoming
soccer seasons starting in the Autumn.
In August the Company announced that it entered into an exclusive licence
agreement with Flash Corp Technologies Ltd ("Flash Corp") by which the Company
has acquired a renewable 13-month license over the rights of FlashBet Wheel
App's design and technology in UK and Europe, for a consideration satisfied by
80,000,000 new ordinary shares of £0.001 each issued at market price of 0.55p in
ChallengerX, representing 18.91% of the enlarged issued share capital of
ChallengerX. Under the terms of the licence agreement, ChallengerX has the right
to continually extend the license on a year-by-year basis for a royalty fee
calculated as an amount equal to 10% of ChallengerX's yearly revenue. In
addition, at any time during or at the end of the licence term, ChallengerX will
have the right to acquire the exclusive rights to the intellectual property
relating to FlashBet Wheel App Technology in perpetuity for a consideration to
be satisfied by the issue of 900,000,000 shares.
Through its investment in the FlashBet Wheel App licence, the Company had
increased expenditure in the period relating to its marketing.
In February 2023 the Company announced it had raised a total of GBP 250,000
(gross) from Aalto Capital AB, through the issue of 55,555,556 new ordinary
shares pursuant to a subscription letter. The Company previously reported that
there was a shortfall of £168,000 in the subscription monies paid. Following the
failure of Aalto to pay the balance, Aalto disposed of 22,329,213 shares and
ChallengerX forfeited the remaining 33,226,343 Shares, in accordance with the
process set out in the Company's Articles of Association. The Company has
informed Aalto formally that the shares issued are now forfeited and has placed
33,226,343 in the Treasury. In addition, the Company has issued a formal claim
as a creditor for all amounts outstanding including interest.
Accordingly, the issued share capital of the Company will comprise 389,914,213
Shares of £0.01 each, with each share carrying the right to one vote, plus
33,226,343 Ordinary Shares held in Treasury. This figure should be used by
shareholders in the Company as the denominator for the calculations by which
they will determine if they are required to notify their interest in, or a
change to their interest in, the Company under the Financial Conduct Authority's
Disclosure Guidance and Transparency Rules.
The Company had further announced that it had granted Aalto Capital AB a total
of 55,555,556 warrants to subscribe for new ordinary shares of GBP 0.001 each
(`Warrants'). These warrants have been withdrawn.
Outlook
The development of the marketing platform and furtherance of the FlashBet Wheel
App will require more expenditure. Additional funds will be sought for this.
However, ChallengerX's newly developed unique user conversion platform combined
with the interest in the Flashbet patented accumulator bet product indicates 2
clear tiers of potential revenue from both B2B and B2C consumers which the
Company hopes to achieve in the near term.
John May
Chairman
Unaudited Statement of
Comprehensive Income for the quarters
ended 30 September 2023 and 30 June 2023
30 30 June 2023
September 2023
£'000 £'000
Revenue -
Administrative expenses (154) (61)
Operating loss (154) (61)
Loss before tax (154) (61)
Taxation - -
Loss for the period (154) (61)
Total comprehensive loss (154) (61)
(Loss) per share (pence) from continuing (0.036) (0.018)
operations attributable toowners of the Company
- Basic
Statement of Financial Position
As at quarters ended
30 September 2023 and 30 June 2023
30 September 2023 30 June 2023
£'000 £'000
Intangible assets
Software Licence 440 -
Current assets
Trade and other receivables 28 177
Cash and cash equivalents 1 48
Total current assets 29 225
Total assets 469 225
Current liabilities
Trade and other payables 171 55
Total current liabilities 171 55
Net assets 298 170
Capital and reserves
Share capital: 390 343
· Issued
· Treasury 33 -
Share premium 1,612 1,410
Retained earnings (1,737) (1,583)
Total equity 298 170
Statement of Changes in Equity
For the quarters ended
30 September 2023 and 30 June 2023
Share capital Share premium Retained earnings Total
£'000 £'000 £'000 £'000
As at 31 March 2023 343 1,410 (1,522) 231
Allotment of ordinary - - - -
shares
Loss for quarter ended - - (61) (61)
30 June 2023
Total Comprehensive - - (61) (61)
Income
As at 30 June 2023 343 1,410 (1,583) 170
Allotment of ordinary 80 360 - 440
shares
Adjustment to share - (158) - (158)
issue cost
Loss for the quarter - - (154) (154)
ended 30 September
2023
Total Comprehensive - - (154) (154)
Income
As at 30 September 423 1,612 (1,737) 298
2023
Statement of Cash Flows
For the quarter ended 30 September 2023
and 30 June 2023
30 September 2023 30 June 2023
£'000 £'000
Cash from operating
activities
Loss before tax (154) (61)
Adjustments for:
(Increase)/Decrease in 149 79
trade and other
receivables
Increase/(Decrease) in 46 (1)
trade and other payables
Net cash (used) / 41 17
generated in operating
activities
Cash flows from financing
activities
Adjustment to share issue (158) -
cost
Loans received 70 -
Net cash from financing (88) -
activities
Net cash flow for the (47) 17
period
Cash and cash equivalents 48 31
at beginning of period
Cash and cash equivalents 1 48
at end of period
Net change in cash and (47) 17
cash equivalents
Cash and cash equivalents
comprise:
Cash at bank and in hand 1 48
1 48
Notes to the financial statements
1. General information
ChallengerX plc is a public limited company limited by shares and was
incorporated in England on 7 June 2021 with company number 13440398. Its
registered office is 16 Great Queen Street, London, WC2B 5DG.
The Company's shares are traded on the Aquis Stock Exchange Growth Market under
symbol CXS and ISIN number
GB00BMD0WG01.
The Company was first incorporated on 7 June 2021.
The information for periods ended 30 September 2023 and 30 June 2023 are
unaudited.
2. Basis of Preparation
The quarterly management accounts of ChallengerX plc have been prepared in
compliance with United Kingdom Accounting Standards, including Financial
Reporting Standard 102, "The Financial Reporting Standard applicable in the
United Kingdom and the Republic of Ireland" ("FRS 102") and the Companies Act
2006.
These management accounts are prepared on a going concern basis, under the
historical cost convention, as modified by the recognition of listed investments
at fair value.
The financial statements are presented in Pounds Sterling, which is the
Company's presentation and functional
currency.
The preparation of the financial statements requires the use of certain critical
accounting estimates. It also requires management to exercise its judgment in
the process of applying the Company's accounting policies. The areas involving a
higher degree of judgment and complexity, or areas where assumptions and
estimates are significant to the financial statements are disclosed in Note 3 to
the financial statements.
The financial statements have been prepared on the historical cost basis and are
presented in £'000 unless otherwise stated.
3. Going Concern
As at 30 September 2023, the Company had cash of £1,000. The Company has limited
operating cash flow and is dependent on the performance of its trading and its
cash balances for its working capital requirements. As at the date of this
report, the Company had approximately £24,000 cash at bank.
In making their assessment of going concern, the Directors, having made due and
careful enquiry, are of the opinion that the Company will have access to
adequate working capital to meet its obligations for the period of at least 12
months from the date these management accounts are authorized for issue. The
Directors, have discussed the Company's position with its investors and
professional advisors. With its recent investment in Flash Corp, the Company,
together with Flash Corp's support, believes it will secure the funding required
to pursue its objectives.
The Directors believe strongly in the Group's potential. However, the success of
securing funding has been identified as a material uncertainty which may cast
significant doubt over the going concern assessment. Whilst acknowledging this
uncertainty, based upon the expectation of completing a successful fundraising
in the near future, and the continued support of its investors, the Directors
consider it appropriate to continue to prepare the financial statements on a
going concern basis.
4. Earnings per share
30 September 2023 30 June 2023
Earnings £'000 £'000
Loss for the quarters ended (154) (61)
Number of shares
Number of shares for the purposes of 423,140,556 343,140,556
basic and diluted earnings per share
Earnings per share (pence) (0.036) (0.018)
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
https://mb.cision.com/Main/22497/3866742/2399397.pdf CX Management Accounts 30.9.23 RNS FINAL
END
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