Half-year Results

StreaksAI PLC (LSE: STK), a UK-based generative Artificial Intelligence (AI) platform, announces its unaudited financial results for the six months ended 31 August 2023.

Operating and financial summary

Commenting on the results, Philip Blows, Chief Executive of Streaks said: "The AI sector has grown rapidly in 2023 and Streaks has moved quickly to meet consumer demand. With significant appetite for chatbot products from corporate customers looking to improve their customer service, as well as consumers looking for entertainment or companionship, there is a great opportunity for Streaks to take advantage of AI's upward growth trajectory. I'm thrilled with the progress we've made in developing our AI products and we're already seeing consumer interest grow as we have now entered our revenue-generating phase.

"Streaks Gaming remains an important part of our business, and we were pleased to partner with William Hill to bring our total number of partners to 14. We're evaluating where best we can leverage our proprietary conversational gaming technologies to grow the Company and complement the burgeoning conversational AI side of our business."

For more information on the Conversational Gaming AI product, please visit www.playstreaks.com.

For more information on the Conversational AI product, please visit www.streaks.ai.

INTERIM MANAGEMENT REPORT

Overview

The Company is in its first year, having listed in January 2023, and has quickly gained momentum, driven by the Company's entry into the growing conversational AI sector. Consumer interest in artificial intelligence grew rapidly in early 2023, with OpenAI's ChatGPT becoming the fastest-growing consumer application in history (source: Reuters, 2023). The Board identified an opportunity to leverage the Company's AI expertise from its work in conversational gaming to gain market share in the still nascent conversational AI space. Moreover, the Company has been able to capitalise on its intellectual property realised through its existing Streaks Gaming business to develop sophisticated new products in a short development timeframe. This additional pillar and revenue stream for the business is reflected in the Company's decision to change its name to StreaksAI, which took place on 10 July.

The loss before tax was £925,000 for the period ended 31 August 2023, attributable to several one-off investments into product development to greatly expand the Company's AI offering, with the intent of positioning Streaks plc as a leading company in the conversational AI industry.

Operating Review

Streaks expanded its AI offering first through the launch of Streaks Social, an influencer-focused product that utilises Natural Language Processing (NLP) text generators like GPT-4 to create a realistic AI facsimile of a real-world influencer. Influencer marketing is a $21.1 billion industry (source: Statista, 2023) which is reliant on influencers' connection with their fans. Streaks Social allows fans to have personalised conversations with influencers, which the Company has monetised through sale of Streaks credits.

Streaks further expanded its conversational AI offering with the launch of Streaks Idols, a social product and AI character generator which offers a range of customisable AI-powered chatbots capable of sophisticated humanlike interaction. Streaks Idols has innate monetisation, allowing users to generate revenue through interactions with their chatbots. Alongside Streaks Idols, Streaks launched Streaks Companion, providing private chatbots designed for long-term conversations, offering companionship, mentorship and digital assistance services. Streaks Companion launched with a dedicated portal on the Company's state-of-the-art website. Streaks' conversational AI services have generated positive momentum, having seen it sign up over 15,700 registered users in its first few months of operation. Moreover, it surpassed 127,000 in aggregate messages sent across the platform userbase.

The Streaks platform is still developing further despite competitive market conditions. With Streaks' development of digital tie-ins including calendar integration, which are expected to release in Q1 2024, Streaks is well positioned to take advantage of the new opportunities ahead and create value for shareholders.

Alongside consumer-facing conversational AI, the Company is continuing to identify growth and partnership opportunities with commercial partners. In August 2023, Streaks partnered with WeShop, a community owned social commerce platform that combines shopping with social media, to deliver a human-like intuitive conversational interface for shoppers seeking in-platform assistance including addressing queries, resolving issues, or receiving product information.

Despite the Company's move into the conversational AI sector, conversational gaming remains an important part of Streaks' offering. In March, the Company signed an advertising partnership with William Hill US to generate referral revenues, taking the total number of signed commercial partnerships for Streaks Gaming to 14.

Beyond Streaks' successful partnerships with WeShop and William Hill in the e-commerce and betting sectors, the Company is exploring expanding into new areas such as HR and education where it can leverage its AI technologies and plans to add value by integrating the product for automation and assistance in these sectors. Streaks' management has seen positive momentum in user growth and messages sent on its conversational AI products, and the Company plans to roll out the Idols service on further platforms including WhatsApp and SMS text messaging.

Outlook

The Company considers that due to the growing size of the AI market, there is demand for conversational AI platforms which are tailored to the individual and useful in personal assistance. The Board is pleased with the positive momentum of the Company's social AI products, which have seen positive audience growth following launch and have generated Streaks' first revenues. The Board believes the AI sector will continue to grow and mature, evidenced by the increased presence of large institutional investors in the space. Streaks is in an excellent position to take advantage of the sector's growth.

The Directors are of the opinion that the Company has adequate working capital to meet its obligations over the next 12 months. The Company is focused on reducing administrative costs in relation to Streaks and anticipate and forecast that the Streaks Idols and Streaks Companion will be strongly cash generative, and the costs related to this revenue will be minimal.

STATEMENT OF COMPREHENSIVE INCOME

FOR THE 6 MONTH PERIOD ENDING 31 AUGUST 2023

The condensed interim financial statements were approved and authorised by the Board of Directors on 24 November 2023 and were signed on its behalf by:

Nicholas Lyth

Director

STATEMENT OF CHANGES IN EQUITY

FOR THE 6 MONTH PERIOD ENDING 31 AUGUST 2023

NOTES TO THE FINANCIAL STATEMENTS

FOR THE 6 MONTH PERIOD ENDING 31 AUGUST 2023

1 General information

StreaksAI Plc is a public limited company incorporated in England and Wales and domiciled in the United Kingdom. The registered office and principal place of business is 16 Great Queen Street, London WC2B 5DG.

The Company was incorporated on 19 March 2021 and started trading on the LSE on the 5th January 2023.

The Company's principal activities and nature of its operations are disclosed in the Directors' Report.

2 Accounting policies

2.1 Basis of preparation

The condensed interim financial statements ("interim financial statements") have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" (IAS 34) as adopted by the European Union (EU). The interim financial statements have been prepared on the historical cost basis, except for assets and liabilities measured at fair value through profit and loss, and are presented in pounds sterling (£). All amounts have been rounded to the nearest pound, unless otherwise stated.

The interim financial statements have not been audited. The interim financial statements do not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The figures have been prepared using applicable accounting policies and practices consistent with those adopted in the audited annual financial statements ("annual financial statements") for the year ended 30 November 2021.

The interim financial statements are for the six months to 31 August 2023, being six months from the financial year end for the Company being 28 February 2023. The interim financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Company's annual financial statements for the period ended 28 February 2023. The Company has not disclosed comparative data for the period from 28th February to 31 Aug 2022 as required for disclosure by accounting standards due to the company having started trading on the LSE on the 5th January 2023 and no such data exists. The company has disclosed the audited figures from the annual financial statements.

The business is not considered to be seasonal in nature.

New standards, amendments and interpretations adopted by the Company

During the current period the Company adopted all the new and revised standards, amendments and interpretations that are relevant to its operations and are effective for accounting periods beginning on 1 December 2021. This adoption did not have a material effect on the accounting policies of the Company.

New standards, amendments and interpretations not yet adopted by the Company

2.2 Going concern

The Company has not yet commenced trade from which it will generate revenue. However, having successfully had its shares listed on the London Stock Exchange on 5 January 2023, the Directors are of the opinion that the Company has adequate working capital to meet its obligations over the next 12 months. The Directors have focused on reducing administrative costs in relation to StreaksAI and anticipate and forecast that the Streaks Social business will be strongly cash generative, and the costs related to this revenue will be minimal. As a result, the Directors have adopted the going concern basis of accounting in the preparation of the interim financial statements.

2.3 Risks and uncertainties

The principal risks and uncertainties relevant to the Company have not changed materially since the release of the annual financial statements for the period ending 28 February 2023. These risks can be referenced in the strategic report contained within the annual financial statements.

3 Critical accounting estimates and judgements

Share Based Payments

4 Share capital and share premium

Intangible assets includes £52,000 in relation to the acquisition of the business and

intangible assets on 15 November 2021 of StreaksAI from Flatiron Labs Inc

The following warrants over ordinary shares have been granted by the Company and are outstanding at 31 August 2023:

There were no dilutive instruments issued in the 6 month period ending 31 Aug 2023.

7 Financial commitments & contingent liabilities

There were no capital commitments or contingent liabilities pertaining to the Company at 31 Aug 2023.

8 Related party transactions

The company made payments to the following companies in relation to directors' fees:

9 Events subsequent to period end

There were no material events subsequent to period end that require disclosure.