Half-year Results
Pre-revenue AI company reports £318k cash, administrative costs down 59% year-on-year, operational runway adequate for 12 months.
| Half year to 31 Aug 2024 | Now | Year before | Change |
|---|---|---|---|
| Operating profit | (£0.4m) | (£0.9m) | |
| Profit before tax | (£0.4m) | (£0.9m) | |
| Net income | (£0.4m) | (£0.9m) | |
| Cash from operations | (£0.2m) | (£1.0m) | |
| Cash | £0.3m | £1.0m | −69.2% |
Figures as reported, converted to £ where needed – see all financials.
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StreaksAI PLC (LSE: STK), a UK-based generative AI platform, announces its unaudited financial results for the six months ended 31 August 2024.
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.
Chairman's Report
Streaks AI plc is a full stack AI-focused technology company. Having listed in 2023 it has spent the intervening time developing AI technology in the conversational interface space and in the automated bot sector. Both of these developments are nearing completion.
As the Large Language AI models have developed, the opportunities to utilise these in applications has widened and we see the penetration of these models and the automated bots that interface with them only increasing.
As Streaks AI plc is pre revenue we have made strenuous efforts to minimise discretionary spend in the period so as to extent the operational runway. All continuing Director fees were accrued, unpaid during the period. In doing so, the operational costs incurred in this period are 59% lower than in the same period last year and is expected to be lower again going forward. As such, the Board of the Company are of the opinion that the Company has adequate working capital for the next 12 months. At the end of the period, the Company had cash of £318,000.
Michael Edwards
CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE 6 MONTH PERIOD ENDING 31 AUGUST 2024
| Unaudited | Unaudited | Audited | ||
|---|---|---|---|---|
| Period ending 31 Aug 2024 | Period ending 31 Aug 2023 | Year ending 29 Feb 2024 | ||
| Notes | £'000 | £'000 | £'000 | |
| Continuing Operations | ||||
| Revenue | - | - | 1 | |
| Cost of Sales | - | - | - | |
| Gross Profit | - | - | 1 | |
| Administrative expenses | (383) | (925) | (1,513) | |
| Write down / impairment | - | - | (63) | |
| Operating loss | (383) | (925) | (1,575) | |
| Finance Income | - | - | - | |
| Finance Costs | - | - | - | |
| Loss before taxation | (383) | (925) | (1,575) | |
| Taxation on loss of ordinary activities | - | - | - | |
| Loss for the year from continuing operations | (383) | (925) | (1,575) | |
| Other comprehensive income | - | - | - | |
| Total comprehensive loss for the year attributable to shareholders from continuing operations | (383) | (925) | (1,575) | |
| Basic & dilutive earnings per share - pence | 4 | (0.10) | (0.24) | (0.42) |
The notes on page 6-11 form an integral part of the condensed interim financial statements.
CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 2024
| Unaudited | Unaudited | Audited | ||
|---|---|---|---|---|
| As At 31 Aug 2024 | As At 31 Aug 2023 | As At 29 Feb 2024 | ||
| Notes | £'000 | £'000 | £'000 | |
| NON-CURRENT ASSETS | ||||
| Intangible assets | 5 | - | 63 | - |
| TOTAL NON-CURRENT ASSETS | - | 63 | - | |
| CURRENT ASSETS | ||||
| Cash and cash equivalents | 318 | 1,032 | 565 | |
| Trade and other receivables | 6 | 32 | 79 | 55 |
| TOTAL CURRENT ASSETS | 350 | 1,111 | 620 | |
| TOTAL ASSETS | 350 | 1,174 | 620 | |
| EQUITY | ||||
| Share capital | 8 | 379 | 379 | 379 |
| Share Premium | 8 | 4,880 | 4,880 | 4,880 |
| Share Based Payment Reserve | 9 | 704 | 704 | 704 |
| Retained Earnings | (5,910) | (4,877) | (5,527) | |
| TOTAL EQUITY | 53 | 1,086 | 436 | |
| CURRENT LIABILITIES | ||||
| Trade and other payables | 7 | 297 | 88 | 184 |
| TOTAL CURRENT LIABILITIES | 297 | 88 | 184 | |
| TOTAL LIABILITIES | 297 | 88 | 184 | |
| TOTAL EQUITY AND LIABILITIES | 350 | 1,174 | 620 | |
The notes on page 6-11 form an integral part of the condensed interim financial statements.
The condensed interim financial statements were approved and authorised by the Board of Directors on 14 November 2024 and were signed on its behalf by:
Nicholas Lyth Director
CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE 6 MONTH PERIOD ENDING 31 AUGUST 2024
| Share Capital | Share Premium | Share based payment reserve | Retained Earnings | Total Equity | |
|---|---|---|---|---|---|
| £'000 | £'000 | £'000 | £'000 | £'000 | |
| Profit (Loss) for period | - | - | - | (925) | (925) |
| Other comprehensive income | 0 | (0) | - | - | - |
| Total comprehensive income for year | - | - | - | (925) | (925) |
| Transactions with owners in own capacity: | |||||
| Ordinary shares issued | - | - | - | - | - |
| Share issue costs | - | - | - | - | - |
| Total transactions with owners in own capacity | - | - | - | - | - |
| Balance at 31 August 2023 | 379 | 4,880 | 704 | (4,876) | 1,087 |
| Profit (Loss) for period | - | - | - | (651) | (651) |
| Other comprehensive income | - | - | - | - | - |
| Total comprehensive income for year | - | - | - | (651) | (651) |
| Transactions with owners in own capacity: | |||||
| Ordinary shares issued | - | - | - | - | - |
| Share issue costs | - | - | - | - | - |
| Total transactions with owners in own capacity | - | - | - | - | - |
| Balance at 29 February 2024 | 379 | 4,880 | 704 | (5,527) | 436 |
| Profit (Loss) for period | - | - | - | (383) | (383) |
| Other comprehensive income | - | - | - | - | - |
| Total comprehensive income for year | - | - | - | (383) | (383) |
| Transactions with owners in own capacity: | |||||
| Ordinary shares issued | - | - | - | - | - |
| Share issue costs | - | - | - | - | - |
| Total transactions with owners in own capacity | - | - | - | - | - |
| Balance at 31 August 2024 | 379 | 4,880 | 704 | (5,910) | 53 |
| CONDENSED STATEMENT OF CASHFLOWS | |||||
| FOR THE 6 MONTH PERIOD ENDING 31 AUGUST 2024 | |||||
| Unaudited | Unaudited | Audited | |||
| 6 month period ended 31 Aug 2024 | 6 month period ended 31 Aug 2023 | 12 month period ended 29 Feb 2024 | |||
| £'000 | £'000 | £'000 | |||
| Cash flow from operating activities | |||||
| Loss for the financial year | (383) | (925) | (1,576) | ||
| Adjustments for: | |||||
| Write down / Impairment | - | - | 63 | ||
| Services settled by issue of warrants | - | - | - | ||
| Changes in working capital: | |||||
| Decrease / (Increase) in trade and other receivables | 23 | 117 | 141 | ||
| Increase / (decrease) in trade and other payables | 113 | (229) | (133) | ||
| Net cash used in operating activities | (247) | (1,037) | (1,505) | ||
| Cash flows from investing activities | |||||
| Purchase of property, plant and equipment | - | - | - | ||
| Purchase of intangible assets | - | - | - | ||
| Net cash flow from investing activities | - | - | - | ||
| Cash flows from financing activities | |||||
| Share issue, net of issue costs | - | - | - | ||
| Net cash flow from financing activities | - | - | - | ||
| Net (decrease) in cash and cash equivalents | (247) | (1,037) | (1,505) | ||
| Cash and cash equivalents at beginning of the period | 565 | 2,070 | 2,070 | ||
| Foreign exchange impact on cash | - | - | - | ||
| Cash and cash equivalents at end of the period | 318 | 1,032 | 565 | ||
NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE 6 MONTH PERIOD ENDING 31 AUGUST 2024
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 9th Floor, 16 Great Queen Street, London WC2B 5DG. The Company was incorporated on 19 March 2021.
The Company's principal activity is that of a global AI-focused software development company, led by a team experienced in this sector and in the development of technology businesses. It is based in UK and its shares are listed on the main market of the London Stock Exchange (ticker:STK).
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 £'000, 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 29th February 2024.
The interim financial statements are for the six months to 31 August 2024, being six months from the financial year end for the Company being 29 February 2024. 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 29 February 2024. The Company has disclosed comparative data for the period from 1st March 23 to 31 Aug 2023 as required for disclosure by accounting standards as well as 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 2023. 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 continues to invest in the development of technology and is prioritising this cost. In light of constrained resources, the Company has taken steps to reduce its cash burn, such as deferring Directors fees and terminating external engagements. As a result, the directors are confident that the Company has sufficient resources to meet its liabilities for a period of at least twelve months from approval of the financial statements and the Directors have therefore adopted the going concern basis of accounting in the preparation of the annual 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 2024. 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 Earnings per share
| Unaudited At 31 Aug 2024 | Unaudited At 31 Aug 2023 | Audited At 29 Feb 2024 | |
|---|---|---|---|
| Loss for the year from continuing operations (£'000) | (383) | (925) | (1,575) |
| Weighted average number of ordinary shares in issue | 378,732,535 | 378,317,101 | 378,523,683 |
| Basic and diluted earnings per share for continuing operations (pence) | (0.10) | (0.24) | (0.42) |
The Company had in issue 82,700,000 warrants and options at 31 August 2024 (82,700,000 at 31 August 2023). The loss attributable to equity holders and weighted average number of ordinary shares for the purposes of calculating diluted earnings per ordinary share are identical to those used for basic earnings per ordinary share. This is because the exercise of warrants and options would have the effect of reducing the loss per ordinary share and is therefore anti-dilutive.
5 Intangible assets
Patents £'000
Cost
| At 29 February 2024 | - |
| At 31 August 2024 | - |
| Accumulated amortisation and impairment | |
| At 29 February 2024 | - |
| Charge for the period | - |
| At 31 August 2024 | - |
| Net book value at 31 August 2024 | - |
| Patents £'000 | |
| Cost | |
| At 31 August 2023 | 63 |
| At 29 February 2024 | 63 |
| Accumulated amortisation and impairment | |
| At 31 August 2023 | - |
| Charge for the period | 63* |
| At 29 February 2024 | 63 |
| Net book value at 29 February 2024 | - |
*The £62,781 Intangible assets in relation to the acquisition of the business from Flatiron Labs Inc were written off following the change in direction of the company, as stated in the Chairman's report in the annual financial statement.
6 Trade and other receivables
| Unaudited period ended 31 Aug 2024 | Unaudited period ended 31 Aug 2024 | Audited period ended 29 Feb 2024 | ||
|---|---|---|---|---|
| £'000 | £'000 | £'000 | ||
| Prepayments | 18 | 79 | 35 | |
| VAT | 14 | - | 20 | |
| Total trade & other receivables | 32 | 79 | 55 | |
| 7 Trade and other payables | ||||
| Unaudited period ended 31 Aug 2024 | Unaudited period ended 31 Aug 2024 | Audited period ended 29 Feb 2024 | ||
| £'000 | £'000 | £'000 | ||
| Trade creditors | 206 | 44 | 120 | |
| Accruals | 91 | 39 | 57 | |
| Social security and other taxation | - | 5 | 6 | |
| Other payables | - | - | 1 | |
| Total trade & other receivables | 297 | 88 | 184 | |
| 8 Share capital and share premium | ||||
| Ordinary Shares | Share Capital | Share Premium | Total | |
| # | £ | £ | £ | |
| At 28 February 2024 | 378,732,535 | 378,733 | 4,879,991 | 5,258,724 |
| At 31 August 2024 | 378,732,535 | 378,733 | 4,879,991 | 5,258,724 |
9 Share based payments and other reserves
The following warrants over ordinary shares have been granted by the Company and are outstanding at 31 August 2024:
| Number of Warrants | Exercise Price | Expiry date | |
|---|---|---|---|
| On incorporation | - | - | - |
| Issued on 18 October 2021 | 26,700,000 | £0.01 | 17 Oct 2024 |
| Issued on 5 January 2023 | 45,499,000 | £0.06 | 4 Jan 2026 |
| Issued on 5 January 2023 | 4,501,000 | £0.06 | 4 Jan 2026 |
| Issued on 5 January 2023 | 6,000,000 | £0.03 | 4 Jan 2026 |
| At 31 Aug 2024 | 82,700,000 |
There were no dilutive instruments issued in the 6 month period ending 31 August 2024.
| As at 31 Aug 2024 £ | As at 31 Aug 2023 £ | As at 28 Feb 2024 £ | |
|---|---|---|---|
| Share based payments Reserve | 703,816 | 703,816 | 703,816 |
| Warrants issued in the period | - | - | - |
| Warrants cancelled in the period | - | - | - |
| Total | 703,816 | 703,816 | 703,816 |
10 Financial commitments & contingent liabilities
There were no capital commitments or contingent liabilities pertaining to the Company at 31 Aug 2024.
11 Related party transactions
The company made payments to the following companies in relation to directors' fees:
| Period 1 Mar to 31 Aug 2024 £ | Period 1 Mar to 31 Aug 2023 £ | Year ended 28 Feb 2024 £ | |
|---|---|---|---|
| Carraway Capital Corp - Mr Mark Rutledge | nil | 30,000 | 48,000 |
| Dark Peak Services Ltd - Mr Nicholas Lyth | nil | 18,000 | 30,000 |
| Marallo Holdings Inc - Mr Michael Edwards | nil | 48,000 | 96,000 |
| Infinity Growth Digital Inc. - Mr David Raphael | 41,000 | 45,000 | 90,000 |
| 41,000 | 141,000 | 264,000 |
12 Events subsequent to period end
There were no material events subsequent to period end that require disclosure.
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