Catenae Innovation : Annual Report and Financial Statements 2022

Annual Report & Financial Statements

Period Ended 31 December 2022

Company No. 04689130

Catenae Innovation Plc

Annual report and financial statements for the period ended 31 December 2022

Contents

Chairman's Statement 1

Board of Directors2

Strategic Report for the period ended 31 December 20223

Report of the Directors for the period ended 31 December 2022 6

Report of the independent auditors 109

Consolidated statement of comprehensive income 15

Consolidated statement of financial position 16

Consolidated statement of cash flows 17

Consolidated statement of changes in equity 18

Company statement of financial position 19

Company statement of cash flows 20

Company statement of changes in equity 21

Notes to the consolidated financial statements 22

Catenae Innovation PLC is referred to in this document as "Catenae", the " Group" or the "Company". Where the context so requires, references to the "Group" include and consolidate subsidiary companies of Catenae Innovation PLC. References to "Company" refer solely to Catenae Innovation PLC and exclude consolidation with the results of its subsidiary companies.

Chairman's Statement

Business and performance review

The Company has focused on delivering its first substantial contract with Saxavord Space Port and has continued to pursue other potential business opportunities. The Board has also continued with its robust approach to remedying the contractual issues that have arisen with its subsidiary, Hyperneph Software Ltd.

Financial overview

The Group made a net loss for the period of £523,497 (2021: £1,246,948). Revenues for the period were £152,437 (2021: £30,210).

The Group has a statement of financial position at the period-end showing net liabilities of £126,298 (2021: net assets £381,926).

Share Issues

During the year Catanae issued new shares as a result of the exercise of warrants as follows: 2,954,545 0.4p warrants were exercised raising funds of £11,818; and 863,636 0.4p warrants were exercised raising funds of £3,455.

No other shares were issued during the year.

Company strategy

The Board continues to focus on organic growth, building on existing customer relationships and attracting new clients, and also on identifying and exploring strategic acquisitions to build the Group and improve shareholder value.

Operational KPIs

During the 15-month period, we refined the operational KPIs we believe to be most relevant. These are:

• ● number of customers;

• ● number of repeat orders;

• ● number of acquisition opportunities reviewed; and

• ● bank balance.

Current Trading and Outlook

We continue to seek acquisition opportunities and since the period end have had multiple discussions.

We are also in discussions with our existing customers for additional work.

I would like to thank the team at Catanae for their commitment and tenacity in pursuing every opportunity to bring new business into the Company.

Brian Thompson

Chairman

29 March 2023

Board of Directors

Directors as at 29 March 2023

Brian Thompson, Non-Executive Chairman appointed as Non-Executive Chairman 24 April 2020

Edward Guy Meyer, Chief Executive Officer appointed as CEO 20 July 2020

John Farthing, Chief Financial Officer appointed as CFO 24 April 2020

Company Secretary

John Farthing appointed 31 August 2019

Company Information

Registered in England

Company no: 04689130

Auditors: MAH, Chartered Accountants

154 Bishopsgate, London EC2M 4LN

Nominated Adviser: Cairn Financial Advisers LLP

9th Floor, 107 Cheapside, London, EC2V 6DN

Brokers: Shard Capital Partners LLP

3rd Floor, 70 St Mary Axe, London, EC3A 8BE

Registrars: Avenir Registrars Ltd

5 St John's Lane, London EC1M 4BH

Registered office: Catenae Innovation Plc, 27 Old Gloucester Street, London WC1N 3AX

Trading Address: Catenae Innovation Plc, 26/27 Lansdowne Terrace, Newcastle NE3 1HP

Telephone: +44 (0)191 580 8545

Email:enquiries@catenaeinnovation.com

Website:www.catenaeinnovation.com

2

Strategic Report for the period ended 31 December 2022

Results and dividends

The results of the Group for the period are set out on page 15 of this report and show a loss for the period of £523,497 (2021: loss of £1,246,948) with total revenues of £152,437 (2021:

£30,210). The Directors are unable to recommend the payment of a dividend (2021: nil).

Principal activities, review of business and future developments

A review of the period is held within the Chairman's Statement above. The Company offers its shareholders exposure to the digital media and fintech sectors. Catenae is a provider of financial technology and media publishing solutions utilising blockchain technologies.

Key performance indicators ("KPIs")

A review of the business of the Group, together with comments on future developments is given in the Chairman's Statement.

The Board monitors the Group's performance in delivery of strategy by measuring progress against Key Performance Indicators ("KPIs"). These KPIs comprise a number of operational and financial metrics.

The Group's stated business strategy may be adversely affected if the above events impact the technology sector. These or any other adverse events may cause negative impacts on the Group's operations, which could result in reduced income levels for the Group and reduced opportunities for acquisitions.

The current macroeconomic situation continues to be a key risk and concern for the Group and could impact its potential for future growth and expansion.